Joseph Muscat has warned that Enemalta will clamp down on electricity theft by boathouse owners if they fail to regularise their position.

However, the Prime Minister continued to defend the government’s decision to give the illegal boathouses electricity smart meters despite criticism that this sent the wrong message.

“It is unacceptable that for years the authorities knew of entire boathouse villages that were stealing electricity without anybody doing anything to stop this,” he said.

The boathouses at Armier in Mellieħa and St Thomas Bay in Marsascala are illegal and yet successive administrations have pledged to regularise their position after an attempt to demolish them in the 1990s was stopped by protesters.

The government is in talks with Armier boathouse tenants to find a permanent solution to the land title issues.

However, in a surprise move, Enemalta has moved ahead with a proposal to install smart meters even in those boathouses that never had electricity but stole it from the public network.

For years entire boathouse villages were stealing electricity

The scheme would mean boathouse owners obtain a temporary electricity supply for about €1,500 and extend the service by paying an annual renewal fee of €230.

The regulations say the arrangement will not grant the applicants any right or entitlement of any nature on the property in question.

Apart from an application fee of €460, boathouse owners will also have to pay a €1,000 deposit on consumption.

This would be charged at domestic rates – the middle tier in the billing structure, more expensive than residential rates but cheaper than commercial tariffs.

Dr Muscat was asked about the boathouse regularisation after visiting the expanded data centre of the Demajo Group. He was shown around the €1 million investment in IT where more than 100 were employed.

Dr Muscat said the Budget would provide the framework for an unprecedented wave of public-private partnerships that would see the private sector invest in a number of areas.