Utility payment difficulties

Finance Minister Tonio Fenech said people who failed to pay their utility bills because of real financial difficulties would find it much better to fall under the Enemalta help mechanism than to come to any agreement with any bank. The Enemalta mechanism, which kicked off 25 days after a bill became due, charged much lower interest rates.

The introduction of smart meters would mean that instead of utilities being completely cut off, they would be reduced to a basic level so that a family would have subsistence levels of water and electricity but would not, for example, have enough power to switch on television and other items that it could do without.

Mr Fenech was answering a series of supplementary questions by opposition MPs on what help was available to families on delayed payment of utility bills.

He made it clear that not all cut-offs of water and electricity came about because of financial hardship. When rather low consumption levels gave rise to suspicion of such hardships, Enemalta habitually involved the Department of Social Services before it acted. That stage was reached only after repeated calls for payment and the drawing up of a schedule of easier repayment.

This situation held true for about 100 to 120 families a month.

On the other hand, there were many cases where, as soon as the utilities were cut off, payment of dues was made almost immediately, meaning that the situation would have been the result of dragging of feet rather than financial hardship.

Asked by Labour MP Noel Farrugia if it was time for a renewed evaluation of families' and businesses' basic needs in today's age, and whether the possibility should be explored of setting up a fund with banks to help address such situations, Mr Fenech said the proposal could be considered, but a system involving the banks would be too complicated when the Enemalta mechanism existed already.

Gavin Gulia (PL) asked if it was Enemalta policy to ask for extra payment of arrears when a meter was replaced with a new one and found to have been under-reading. Mr Fenech confirmed that this was so only when manipulation of the meter was suspected.

Mr Farrugia recalled that previous governments used to pay a percentage of the interest due on delayed payment of utility bills, in the interests of social commitment. Could this scheme be revived for one or two years after re-evaluation by an inter-ministerial committee?

Mr Fenech replied that the taxpayer could not be expected to subsidise any business for having failed to pay its dues. A committee between the Finance and Social Services ministries already existed for evaluation of single cases.