An interest charge of six per cent on overdue water and electricity bills will only apply on actual bills, the Ministry of Finance said, allaying fears that the penalty will also apply to estimate bills.

The charge applies on overdue bills in three circumstances, a ministry spokesman told The Times: "If the bill is based on an actual reading; if the bill is a six-monthly actual bill, however was issued on estimate because the consumer did not provide access to the meter; and if the bill is issued on a reading submitted by the customer."

A booklet distributed to all households by the newly-formed company Arms Ltd, which is the billing arm of Water Services and Enemalta corporations, did not specify on what bills the high interest charge would apply.

Consumers are normally issued with two estimate bills and an actual bill every six months. Bills issued on estimate may not be paid.

The lack of information in the booklet has led many consumers to believe that the charge would also apply to bills issued on estimate.

"The utilities' policy regarding estimate bills has not changed," the spokesman said when asked whether consumers had to now pay estimate bills.

The interest charge of six per cent per annum will apply on bills not paid after 45 days from the date of the invoice.

However, interest would be levied starting on the 15th day from the date of invoice.

The interest on overdue bills was one per cent up to the end of last year, before the new company took over the whole billing process.

ksansone@timesofmalta.com