Malta has denied it is discriminating against foreigners who pay higher water and electricity rates than the Maltese, insisting the different tariff is only applicable to non-permanent residents, independent of nationality.

Last year Irish MEPs claimed that despite being EU citizens, constituents of theirs were being charged 30 per cent more than Maltese residents for water and electricity.

Brussels had said it would look into the issue with a possibility of starting infringement procedures against the island if it found Malta was discriminating on grounds of nationality.

The European Commission has so far refrained from taking any legal action against Malta but The Times is informed that earlier this month it officially asked for an explanation of the different water and electricity rates applicable to foreigners living on the island.

Malta has yet to reply to the Commission’s call for information but government sources insisted the claims made by foreign individuals were un-founded.

In a letter addressed to the Irish MEPs, the government said although it was true some foreigners in Malta were charged higher rates, the difference was based on residence not nationality. This was something permitted by EU law: Any EU individual can be charged the same tariffs as Maltese citizens once they prove they are permanent residents and pay their taxes on the island.

The government said that according to Maltese law, EU citizens and their family members could take up residence in Malta for a period longer than three months subject to the provisions of a legal notice on the Free Movement of EU Nationals and their Family Members Order.

These provisions lay down that once the three months expire, EU citizens have to apply for a registration certificate with the Director of Citizenship and Expatriate Affairs.

Foreigners resident in Malta also have the option of providing proof they pay taxes in Malta instead of presenting the registration certificate.

In the letter, the government said this showed there was no discrimination between Maltese and EU citizens “as all EU citizens resident in Malta may qualify for the ‘residential rate’ without any discrimination on the basis of nationality”.

In their claims, the Irish MEPs had told the Commission that Enemalta Corporation and Water Services Corporation were charging all foreign residents in Malta a “domestic” rate rather than the normal “residential” rate charged to all Maltese.

Water and electricity under the “domestic” tariff is 30 per cent price more expensive than that charged for the same consumption by Maltese. These, according to the two MEPs, are the highest utility rates throughout the EU.

However the government is insisting this is not the case as the domestic rate is only being charged to those foreigners, including EU citizens, who are not permanent residents on the island.

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