The news that Arms Ltd was refunding the €12 penalty imposed on hundreds of consumers for allegedly defaulting was a victory for the consumer brought about by Labour, the party said.

The penalty was imposed when the company issued letters warning clients that unless they settled their water and electricity bills they would be sued. Every consumer who received the letter was also fined €12. Labour said the company’s U-turn was the result of its pressure on the government.

It recalled that the illegal and unsigned letters were revealed by party leader Joseph Muscat on October 3. The government had later acknowledged the letters were illegal and abusive, it said.

Finance Minister Tonio Fenech had said the letters were considered null. He confirmed in Parliament that where the €12 fine had been collected, this was being refunded through a credit note.

However, Labour said the minister had still failed to say who, of the four managers at Arms, had authorised the letters and who should be held responsible.