A group of EU citizens residing in Malta filed a judicial protest against ARMS Ltd and the Malta Resources Authority on Friday over discriminatory red tape that sees them paying some 30 per cent higher utilities rates than their Maltese counterparts.

In what is expected to be the first step in a class action lawsuit, some 40 claimants – who count nationals of the UK, France, Denmark, Ireland and Italy amongst their ranks – have complained to the courts that ARMS and the MRA are in breach of the European Commission Directive on the free movement of EU citizens, as the company, which issues water and electricity bills, is in breach of one of the key principles of the EU and is therefore not treating EU nationals fairly and as the equals of local nationals.

The Commission’s bone of contention with Malta is that, in order to benefit from reduced water and electricity bills, EU citizens residing in Malta need to present a specific set of residence documents, whereas Maltese citizens need only to submit a copy of their identity card and no other proof of residence.

According to the Commission, such discriminatory treatment is not in line with EU law and creates an unacceptable obstacle to exercising the right to free movement and to fully enjoying their rights as EU citizens residing in Malta.

In their lawsuit, the claimants argue that they are being subjected to non-transparent, equivocal and lengthy administrative practices when applying for the provision of non-commercial electricity and water services. In certain instances, information requested by the defendant company violates the protestors’ right to data protection. 

“These practices,” the protest alleges, “when broadly compared to the treatment afforded to Maltese European Union citizens by the defendant company, are also discriminatory.”

The applicants say they are facing or actually being charged electricity and water tariffs at financially disadvantageous and discriminatory rates by the defendant company when compared generally to Maltese European citizens. Nor are they enjoying equal benefits such as the eco-reduction scheme.

They also argue that the distinction existing at Maltese Law between residential and domestic tariffs finds no counterpart in corresponding European legislation, as the latter merely distinguishes between residential and non-residential (commercial) use and the legality of the said distinction at Maltese law (when applied to EU citizens) is being called into question.

Moreover, they complain that administrative practices and higher tariffs being charged violate several EU directives and also the principal EU Treaty, which guarantees freedom of establishment and the freedom to provide and receive services and the right to good administrative practice provided by the EU Charter.  

The protestors insist they have the right to benefit from transparent, simple and inexpensive procedures for dealing with their complaints and that in particular as consumers they the right to a good standard of service and complaint-handling by their provider.

They have also highlighted their right to an out-of-court settlements procedure that enables disputes to be settled fairly and promptly, preferably within three months, with provision, where warranted, for a system of reimbursement and/or compensation.

The protestors, while holding ARMS Ltd and the MRA responsible for any damage, whether direct or indirect, wilfully or negligently inflicted on them by the defendants, demand the full reinstatement of their rights. Additionally, the protestors reserve their right to be fully reimbursed, including their right to legal interest from the date when such reimbursement is due to the date of full effective discharge of the defendants’ obligations.

The judicial protest demands that, in view of the delay already sustained by the protestors, the defendants resolve all the issues mentioned within three weeks; that the protestors are supplied with a comprehensive list of all documents requested from Maltese nationals when applying for water and electricity for non-commercial purposes; that they are supplied with a comprehensive list of all documents requested from non-Maltese EU citizens when applying for water and electricity for non-commercial use; and that they are provided with the legal reasoning for every difference in the information in terms of the documentation supplied in order to ensure that none of the information requested violates the protestors’ right to privacy.

The protest also demands that ARMS and the MRA “declare whether they are ready to concede the illegality of the application of the distinction between residential and domestic tariffs to European citizens who have a sole residence in Malta or, as the case may be, a secondary residence in Malta; and that they provide the protestors with electricity and water supplies for non-commercial use under the same conditions and with the same ease of access that said services are provided to Maltese European citizens and with a high level of customer service, as provided for in the relevant European legislation.

Moreover, ARMS and the MRA have been requested to “propose a method of reimbursement in the event that it results that the protestors have paid higher rates than those they were entitled to enjoy for non-commercial water and electricity use”, failing which  further legal action will be undertaken.

The judicial protest advises ARMS to not terminate or interrupt the utility services of the protesters at any time during the dispute.