Tenants told new system to register for lower utility rate not ready due to technicalities
A number of local tenants attempted to file a mass application yesterday morning at ARMS Ltd in order to be charged the lower residential rate that is awarded to primary households to Maltese residents, but were told to sit tight until technicalities are all smoothed out.
Just last week however, when tenants turned up to register for residential rates without their landlord’s permission, in accordance with the change in the law, an ARMS representative said “they were waiting for approval”.
ARMS Ltd is the state entity responsible for issuing and collecting of water and electricity bills.
Following a long battle with the authorities, tenants have successfully managed to attain a change in the law that allows them to register directly with ARMS Ltd for their utility rates, rather than having to seek the landlord’s permission.
Over the years, landlords have been denying tenants their right to have the same residential rates as other Maltese households simply because they are not declaring their rental income with the government. Domestic rates, some 30% higher than residential ones, are charged on the second homes of those people lucky enough to own more than one property, and to non-residents.
Government mum on delays
Questions were sent to Minister Konrad Mizzi and the Office of the Prime Minister in order to get a more clear explanation on the “approval” ARMS appear to be waiting for before they begin implementing the changes to the law.
Such questions have remained unanswered, however when tenants visited ARMS yesterday to file their application, a different response was given which is that the entity is working out the technicalities in the IT software in order to implement the service.
Group spokesperson for Up in Arms EU Advisory Group Patricia Graham stated that when she met with Dr Mizzi last June, she was told that the system is ready to go and that the change in the law would have to come into effect before tenants can apply for a change in their utility rate.
The changes to the law were announced in a press conference by Dr Mizzi, and then again were outlined last October when the 2017 Budget measures were announced. Ms Graham highlighted, through documentation, how today tenants are paying from 30-60% more through abusive practices carried out by landlords.
She also said that some tenants are afraid to register directly with ARMS for fear of having their lives made extremely difficult by landlords.
Confusion inside ARMS
When the small group of tenants walked into ARMS in order to file their application, with all required documents in hand, an employee at the front desk said that they would need permission from their landlord, indicating complete ignorance of the change in the law.
While management came down to speak with the tenants, in a very respectful and courteous manner, one would expect the employees who are the first point of contact to be aware of changes in the laws that are directly related to the service they are providing.
Told to wait a couple of weeks
Asked when the new system would be fully implemented, meaning tenants can apply for the just rate they should be charged, a representative said that he will not commit to saying it will be available in the coming days, but that definitely in the coming weeks.
He also told tenants, like his colleague at the front desk, to follow the press for further updates.
The Malta Independent reported the change in the tenant law when the budget proposals came out last October, and also reported that it would come into effect as of January 2017. Questions sent to the government about the current delays, as highlighted above, remained unanswered.
Background
After a long battle, group spokesperson for those tenants who have been abusively made to pay higher rates, Patricia Graham said:
“After a three-year long battle with the government, Enemalta and ARMS, it is now possible to apply for the residential rate for the property that you rent. Before January 2017, tenants were made to pay for energy and water through the landlord on the domestic rate. Now, by applying at ARMS for free, you can skip the middle man and pay bills directly on the correct tariff to save between 35-60% on your monthly bills.
The hope behind this change in the law is to curb the proportion of landlords who are taking advantage of a situation that is leaving many tenants with their hands tied and is forcing them to pay much higher rates than they should be paying.
Ms Graham, together with the Up in Arms Malta EU Advisory Group have long been in contact with the authorities in order to bring justice to many EU national residents of Malta, as well as Maltese citizens who are renting in the private sector and are struggling to pay their bills.
After the last general election in 2013, Ms Graham met with thenenergy minister Konrad Mizzi who agreed that presenting a tenancy agreement or contract to ARMS should be enough to prove that it is the primary home and will therefore allow the tenant to benefit from lower rates. Following a string of meetings and discussions, it was concluded that the changes to the law will be coming into effect as of January. As stated above however, tenants have so far been unable to benefit from this change.