Updated 1.30pm

A group of activists from civil society group Repubblika have gone to court to cancel the government’s deal with Electrogas which they claim is the “source” of fraud that breached consumers’ fundamental rights. 

Forty-seven Maltese and European citizens filed a constitutional application on Friday against the State, Enemalta plc and ARMs Ltd as customers paying fixed tariffs for essential “water and electricity services” that were subject to an “absolute monopoly.”

Making reference to the controversial Electrogas deal and the Auditor General’s November 2018 report voicing “serious concern” on the tendering process and ensuing deed, the applicants claimed that consumers were paying higher tariffs as a result of the contracts. 

The government was the majority shareholder of Enemalta plc which, although a private commercial enterprise, was meant to offer a “public service in the national interest at a decent profit.”

Consumers, including the applicants, having no choice but to obtain such essential services from Enemalta ended up paying unjust prices because of an “additional layer” introduced between fuel supplier Socar SA and Enemalta. 

Under a security of supply agreement valid for 18 years, Enemalta had bound itself under a “take-or-pay obligation” standing at 85 per cent of the annual contract power which effectively spelt a “disproportionate and unnecessary expense for Enemalta.”

The fraud-tainted deal benefited private interests to the detriment of national and public interest and consequently the applicants themselves who ended up forking out “exaggerated and high bills.”

Consequently, they were requesting the court to declare that their fundamental right to property was breached, to liquidate and award compensation for damages and to rescind the deal that was the “source” of such fraud.  

Lawyer Edward DeBono signed the application.