Brussels throws the switch on MEP issue

The disconnection of electricity services to defaulting customers does not infringe EU rules, the European Commission has said, stressing that the union’s energy policy should not substitute social policy.

The message was delivered to Labour MEP Edward Scicluna by the EU’s Energy Commissioner Gunter Oettinger in reply to a call for an investigation on the issue.

In a number of parliamentary questions tabled at the EP, Prof Scicluna argued that Malta might be in breach of the EU’s energy market rules because vulnerable people were having their electricity cut off when they defaulted on their bills.

Since 2008, nearly five per cent of Maltese households had their power disconnected, Prof. Scicluna pointed out, arguing that according to the EU’s internal energy market legislation, member states have a clear obligation to protect vulnerable customers.

Prof Scicluna also claimed that these vulnerable people were not being given energy credit coupons by the Maltese authorities before they paid their arrears immediately and in full.

The Commission disagreed with Prof. Scicluna’s reasoning.

“The disconnection of consumers is not explicitly prohibited at a European level,” Commissioner Oettinger said. “It is not the intention that energy policy should in any way substitute for the protection of vulnerable customers through social policy.

“With reference to that, Malta Resources Authority informed the Commission that two different instruments, the energy benefit and eco-reduction, are currently in place to support vulnerable customers.”

Mr Oettinger also contradicted Prof. Scicluna’s figures on how many Maltese housholds had their electricity disconnected after building up arrears. The Commission said figures obtained from MRA show that approximately 0.71 per cent of households had their electricity disconnected each year between 2008 and 2011.

“Almost all of these households subsequently had their electricity service reconnected in the period following this disconnection,” Commissioner Oettinger said.