Peter Murray, Mosta
High interest on late utility payments
The new entity to manage and provide billing statements for electricity and water usage, the Automated Revenue Management Services (ARMS), has now commenced operations and is in the process of supplying these billing statements complete with a new generation format to all households.
However, despite a widespread campaign (together with information leaflets) in a valiant attempt to explain the new billing process, is it just me who finds the consumption calculations to be unfathomably baffling and immensely difficult to comprehend? This is allied with some rather less than prominently advertised new terms and conditions for settlement of account, which I will argue, are unfair and unjust.
Notwithstanding the massive increases in the cost of these utilities, which flies in the face of the actions of all the other power service providers throughout the EEC (this also includes gas prices incidentally), the biggest single yet massive change in settlement of account procedure now concerns the timeframe allowed. This is radically reduced from 45 days to 15 days and this timeline commences from the invoice date as shown on billing statement and not from when one receives this invoice. As anyone can attest, there is no correlation between these two dates and they can differ quite dramatically.
Also, some of the payment options to reconcile one's account are unavailable given that some of these are closed due to weekends or feast days, which again lessens the 15 days availability payment period, as these days should only be working days.
In any event, the advice contained in this regard on the reverse of the billing statement is immensely confusing and conflicting, along with the new advice that any late payments (i.e. those received after 15 days from invoice date) will now be charged with an interest payment of six per cent per annum. Yet it also confusingly states that "it is imperative that you pay within 45 days from date of invoice". By whose authority was this payment deferment period reduced by an immense two-thirds and, furthermore, with such a massive and punitive rate of interest penalty payment? I agree that penalties should apply for late payments but for a longer period than 15 days before these kick in and for less than six per cent p.a., as the work involved to recover any monies owed is the same regardless of the amount owed. Also, a percentage repayment plan increases the amount of repayment for those owing more money, which unjustifiably exacerbates their predicament.
Moreover, such penalty charges should reflect the work necessary to reconcile past due accounts, for otherwise a charge of profiteering can be levelled at ARMS.
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Peter Murray
Mar 1st 2010, 22:13
Dear R.Caruana,
Your take and understanding on plain English appears different from the majority of us.The payment period advice is far removed from transparent or concise as could possibly be.What about the other issues raised in relation to payment procedure such as the fact that it is not available in certain local councils as also clearly stated in plain English on the billing statement? Or the fact that estimated bills should not be issued in any event as they are based on supposition and what about the massive six per cent interest rate-would any over-payments as, in estmated payments,accrue or attract this interest ratet for an excess payment?It seems you alone are satisfied with this and know all the answers.Also I wrote this letter some 10 days ago.
lgalea
Mar 1st 2010, 22:10
R. Caruana If you are given 45 days to pay, then why should interest start being charged from 15 days? Thus is USURY for which the Gonzi government will long be remembered.
Steven Brockwell
Mar 1st 2010, 18:59
its just a scam, forcing people to go with just so we can switch on a light bulb? it wont be long before many of us go back to candle light. oh i guess that would also be taxed.
R. Caruana
Mar 1st 2010, 16:06
Only last week the Times carried a very clear explanation of all this from Enemalta. NO INTEREST IS CHARGED ON ESTIMATES. IN FACT ONE DOES NOT EVEN HAVE TO PAY AN ESTIMATED BILL. PLEASE GET FACTS STRAIGHT. I'm sick of reading stupid comments in these utility bill threads.
R. Caruana
Mar 1st 2010, 16:04
I just cannot believe that there are people today that cannot read plain English. It is very clearly stated on the new bills that one has 45 DAYS in which to pay the bill, however if it is not paid within 45 DAYS, then a 6 percent charge is levied, starting 15 DAYS FROM DATE OF INVOICE. So it is not true that the period to pay a bill has been reduced from 45 to 15 days. This sort of misinformation smacks too much to scaremongering.
Nathan Young
Mar 1st 2010, 15:55
When I received my bill I queried this with ARMS.They told me that the interest payment starts if the bill not paid after 45 days.
Charles Micallef
Mar 1st 2010, 15:22
The expression "you cannot get blood out of a stone" applies to the new energy tariffs, The administration keeps on insisting that the increases are a necessity although any one with a heart will know that they are far from compatible with the wages earned! If they really want to be serious, they should first get Enemalta’s operation in order and then they will find out how much money is going down the drain with the savings they can create from this dinosaur, which is far, far more substantial when compared with money they squandered on the Drydocks and Buses. By the way how are Enemalta’s management accounts doing, are they up to date or if not how many decades are they behind?
D.AZZOPARDI
Mar 1st 2010, 13:42
Mr .Murray I fully agree with your comments but we are living in an island of a so called modern communism political era pay up no matter what or else face the wrath of the goverment this is what we the indiviuals have been reduced to just NUMBERS , WE HAVE NO SAY.ONLY ONCE EVERY 5 YEARS MY FRIEND. The fact that this evening in this farse of a parlament a vote is going to be held regarding the water and electricity bill, i remember very well back in 1998 when a similar vote was going to be taken and one person voted against it and after that everyone proably knows what happened .Who knows maybe someone from the goverment has the B**** to do the same , HA that will be the day .So you see Mr Murray we are living like medieval times the king just orders to gather more taxes from the peasants and that"s what happens , OR ELSE .
laurence schembri
Mar 1st 2010, 13:38
I will ask once again, can we get more information on this budding new company ARMS.
Is their job i.e. the six% usuary a twist of one`s arms?
Edward Sant
Mar 1st 2010, 11:38
Are Direct Debit arrangements in place in Malta to facilitate such payments? If not why not? It is an easy way to settle routine bills. Another way is to introduce regular payment accounts whereby one pays a fixed amount each month by Standing Order to the utility companies thereby spreading the cost over the year which helps to smooth out seasonal peaks and throughs (heating in winter and air conditioning in summer). They work very well in some countries and could work in Malta too.
lgalea
Mar 1st 2010, 10:56
ARMS is simply resorting to USURY with the PN Government blessing.
frank grech
Mar 1st 2010, 10:43
The law clearly states that : to be charged interest on any unsettled bill, this must be and I quote in Maltese ' cert, likwidu u dovut' (certain , liquid, and owed) so in the case of estimated bills no interest should be charged.