Cutting off power supply does not breach EU law

Suspending the electricity supply to households defaulting in paying their bills does not breach current EU rules, according to the European Commission.

A total of 2,148 households had their power supply suspended in the first 10 months of last year because they failed to settle outstanding bills. In many cases the supply was restored following agreement between the defaulters and Enemalta.

The statistics prompted Labour MEP Edward Scicluna to ask the Commission to establish whether such practice was in breach of EU legislation protecting vulnerable groups, especially in view of the recent hikes in electricity rates.

He argued that since some of the disconnected households included vulnerable groups, such as families receiving social assistance benefits, the practice could be in direct contravention of a directive laying down that member states had to take measures to protect vulnerable customers.

The Commission noted that the operation of the electricity market was in the hands of the Maltese authorities. However, it also pledged to seek information on how EU consumer protection rules were being implemented.

It pointed out that the relevant European law was not yet in force and that EU member states had until next March to adopt the relevant clause of Directive 2009/72/EC.

Energy Commissioner Gunther Oettinger explained that member states were clearly obliged to protect vulnerable customers under the internal energy market legislation. The Malta Resources Authority had a duty to promote the interests of consumers, particularly the vulnerable ones, in respect of prices, quality and variety of the service.

However, he added, the disconnection of the power supply to defaulting consumers was not explicitly prohibited at a European level, Mr Oettinger said.

Prof. Scicluna also complained in his question that, since last December, electricity rates in Malta had risen by 29 per cent while the average increase across the EU in the same period was of just one per cent.

The Commission said it had noted "the tendency for electricity prices in Malta to follow trends in oil prices".

It said there were differences between Malta and the rest of the EU, including the fact that the system on the island was an isolated one, with a monopoly of supply and derogations from parts of EU internal market directives. "Therefore, care should be taken when making direct comparisons between EU energy prices and those of Malta," the commissioner said.