Non-Maltese EU citizens fed up with paying utility bills 30 per cent higher than the norm yesterday filed a judicial protest against ARMS Ltd and the Malta Resources Authority.
The group of 40-odd residents is ready to sue both entities for what they say are discriminatory practices making it unreasonably – and intentionally – difficult for non-Maltese EU citizens living here to be charged for electricity and water at the regular homeowner rate.
Instead, many are charged the so-called “domestic” rate, which is one-third higher than the regular “residential” one and ostensibly intended for second homes.
ARMS and the MRA have been given a couple of weeks to reply to the judicial protest. Failure to do so will trigger a full-blown court case.
While Maltese citizens can prove residency by showing their ID card, other EU citizens must obtain a registration certificate to prove they are residents.
EU nationals complain this is in itself discriminatory and that ARMS often adds salt to their wounds by sending them on bureaucratic wild goose chases.
Last September, the European Commission sent the Government a letter of formal notice querying the matter.
The Government has said it will respond, without providing time frames.
ARMS Class Action Group spokeswoman Patricia Graham said many affected EU citizens had been unable to add their names to the judicial protest. “We’ve got another 120 people who want to join but cannot because their utility bills are issued in their landlord’s name rather than theirs. That means they first have to prove a contractual relationship with ARMS,” Ms Graham said.
Many landlords are reluctant to have tenants listed on bills because they do not want the taxman to find out about their unregistered rental properties.
The situation meant many group members were now in a bind, Ms Graham said.
“When people come to Malta, they need a place where to live. Many rely on estate agents – who know very little about the matter and never warn tenants about this issue – and never realise that they might be caught in this sort of trap further down the line.”
An article about the imminent lawsuit published in The Times last month prompted a deluge of e-mails from citizens asking to join the lawsuit. Many still have outstanding issues with ARMS and declined to be named for fear of retribution.
One EU national said ARMS had billed him €500 for electricity use in a house that had been vacant with the mains turned off for the past 14 months.
Maltese national Joseph Borg said that ARMS was still sending him bills addressed to the previous owner of his house, a British man who was being charged at the higher rate.
“I bought my house five years ago but I’m still being charged the higher rate. ARMS sent inspectors over two winters ago but nothing happened. They keep sending me round in circles,” said Mr Borg.
British resident Howard Hodgson sent The Times a correspondence trail between himself and ARMS, dating back several months, in his attempt to register as a local resident.
In the e-mails, an ARMS customer service agent requests a copy of Mr Hodgson’s ID card – despite ARMS’ own application forms clearly stating that “an ‘A’ ID card is not valid”.
A woman said ARMS had asked her underage daughter to provide them with a residence permit for her to be registered. “She is underage and must live with me according to the law. But ARMS seems to have different ideas,” she said.
A National Audit Office report published in September rapped the company for lacking “the right approach to customer orientation”.
The Times asked ARMS to list what documents it required of EU citizens applying to be registered as residents. It was also asked why it demanded copies of ID cards, in direct conflict to its own documentation.
Despite being given three weeks to reply, the questions remained unanswered at the time of writing.