Opposition energy spokesman Tonio Fenech. Photo: Jason Borg

Enemalta’s Compliance Unit was not disbanded but transferred to ARMS Ltd to monitor bill payments and credit on the corporation’s behalf, according to former finance minister Tonio Fenech.

He was reacting to Energy Minister Konrad Mizzi’s claims that the previous Nationalist administration had closed the unit, resulting in a spike in electricity theft.

Contacted by Times of Malta yesterday, Mr Fenech shot down Dr Mizzi’s claims, accusing him of trying to divert the scandal’s focus.

“Konrad Mizzi should stop fudging the truth in his attempt to divert attention from the real scandal in this story: the Prime Minister’s attempt to stop authorities from pressing charges against consumers who were caught bribing public officials to pay lower electricity bills,” he said.

He explained the unit to which Dr Mizzi referred was called the Credit Control Section, which was transferred to ARMS Ltd when the previous government was moving all functions related to bill processing, credit control and similar responsibilities.

He insisted the responsibility of this section was never monitoring meter activity – a function tasked to ARMS Ltd during the smart meters’ installation phase ­­– but ensuring pending bills were paid by large commercial establishments.

This section within ARMS Ltd, he said, uses a different methodology to the previous one, because it does not doorstep commercial establishments and threaten to turn off the power supply.

Today, owners of commercial establishments are asked to attend meetings at ARMS Ltd’s office to discuss payment of pending bills: a more dignified approach that still fulfils its aims, he said.

When the section was being transferred from Enemalta, a number of employees had objected to being transferred to ARMS Ltd, the former minister said. The General Workers’ Union had also been brought in.

As a result, as finance minister he had approved redeploying this particular group of workers to other departments within the State energy corporation.

“The decision to transfer responsibilities from Enemalta to ARMS was supported by the Finance Ministry on the recommendation of Enemalta and ARMS as part of the transition process,” he said.

“Official statistics show that the new procedure was much more effective and successful in the collection of bills due following this transfer; this is confirmed by the Auditor General’s report.”

Mr Fenech said the responsibility to check meters for any tampering belonged to meter readers who, while taking readings, would check whether the seals had been tampered with.

But when contacted, Dr Mizzi insisted that Mr Fenech should check his facts.

“On a weekly basis, compliance officers within the Compliance Unit used to carry out inspections to identify cases of theft.

“The main reason for disbanding the section given by Enemalta to the staff and the union was because of technological innovation,” Dr Mizzi said.