Tenants registering with ARMS must pay €466 deposit to have bill in their name

Tenants who have been fighting to pay the correct and lower residential water and electricity rates have to deal with yet another obstacle in their efforts to circumvent landlords who have effectively been forcing them to pay the higher domestic rates.

Tenants will now either be required to pay a €466 deposit or set up a direct debit with ARMS Ltd to register themselves directly with ARMS, and have the bills issued under their own name, Group spokesperson for Up in Arms EU Advisory Group Patricia Graham said.

The hefty deposit has been indirectly confirmed by Minister without Portfolio Konrad Mizzi’s spokesperson, as well as through a copy of the new ARMS form seen by The Malta Independent on Sunday; however, the direct debit was not confirmed by the spokesperson.

Following a long battle with the authorities, tenants had managed to successfully bring about 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.

The changes to the law were announced in a press conference by Dr Mizzi, and were outlined again last October when the 2017 budget measures were announced.

Over the years, landlords have been denying tenants their right to have the same residential rates as other Maltese households simply because they do not declare their rental income. Domestic rates, some 30 per cent higher than residential ones, are charged on the second homes of those people who own more than one property, and non-residents.

Many rent out their second properties, but in order to avoid declaring any rental income, landlords do not register their tenants living in the rented property as a primary home, so tenants have to pay the higher domestic rate.

In January, many tenants went to the ARMS offices to sign a mass application for the lower residential rate, in an attempt to make use of the change in the law that allows them to do this without the landlord’s permission. However, they were told that the new system was experiencing a technical difficulty.

Asked by this newsroom why tenants had to pay a deposit, and why they are not being billed under normal procedures, a spokesperson promptly replied: “At present, tenants can apply for residential rates for their primary residence by having utility accounts in their names, or by obtaining the account holder’s consent to the change in tariff. Following government and shareholder instructions to simplify procedures, ARMS Ltd is currently finalising the implementation of administrative and technical changes necessary to allow tenants to apply for residential rates for electricity consumed in their primary residence, without requiring prior consent of the current account holder. In the coming weeks, ARMS Ltd will be able to offer tenants a new application process. The required technological upgrades have also been done.

“The requested guarantee deposit is also a requirement in the Change of consumer application – Form F. This is necessary/ compulsory when applicants do not present proof of ownership (when applying for a new service or transfer).

“The above change in procedure to simplify access to residential tariffs by EU citizens follows other measures taken by Government since 2013, to address instances of alleged discrimination against EU citizens with regard to excessively high utility bills. The implementation of these measures also led the Commission Services in November 2016 to formally close the Infringement Procedure it had opened in September 2012.”

Ms Graham, when asked to comment on this latest development after it appeared that the situation was going to be resolved last January said: “Perhaps it should be considered an amnesty, that everyone currently on the Domestic rate will receive the correct rate at no charge. That would include ALL mainly Maltese nationals who have been held hostage by tax evading landlords for the last five years. Many of these by the way receive the old fashioned wage packet and have no bank account in which to sign a standing order/direct debit.”

In a previous comment, Ms Graham showed through documentation that tenants were paying some 30-60 per cent more on their water and electricity bills due to the abusive practices carried out by landlords.