The Regulator for Energy and Water Services (REWS) have been asked to investigate issues surrounding the calculation of electricity bills which is leaving some consumers paying far higher rates than they should be when calculating their consumption on an annual basis.

Deputy leader for Parliamentary affairs David Agius addressed a press conference shortly after presenting a signed letter, where he stressed that the authority is empowered to carry out such investigations because it is the regulator.

Agius said that the party is hoping for investigations not to take too long so that consumers may be refunded however much they have overpaid. He added that the PN has asked for the regulator to come back to it with its final decision while delving into the work it carried out with ARMS, Enemalta and the Water Services Corporation over the matter.

The PN calculates that the way in which ARMS are calculating water and electricity bills is leaving consumers roughly €600 poorer.

The Opposition have amassed a sample of bills in order to make its calculations, while it has encouraged more people to send over their bills in order to ascertain the extent of the situation.

The Malta Independent had revealed how consumers are being overcharged by ARMS through a system of quota rationing after prominent local economist Marie Briguglio had taken to social media to explain the matter after she had noticed a stark increase in her bills.

The frequency with which ARMS issues invoices has a direct and material effect on the overall bill. As things stand, the first 2,000 units consumed per household is charged at 10c5, the next 4,000 units at 13c, the next 4,000 units at 16c, the next 10,000 units at 34c and any more units consumed after that are charged at 60c.So, if the rates have not changed over the past five years, why have people complained of an increase? The answer is in the unit allocation. Invoices are issued on ‘cumulative consumption’ annually, which ‘may be billed on a pro rata basis’.

This translates into ARMS dividing up the units awarded at their respective rates by 365 days. The 2,000 units at the lowest rate of 10c5 are divided into 365 days, giving a household a maximum of 5.479 units per day at 10c5. The same process is carried out for each of the bands at their respective rates. Since people have begun receiving bills every two months, the quotas are being chopped up with them. A billing period covering 60 days gives 328 units at 10c5. A bill covering a four month period, say 128 days, would give you 701 units at 10c5.

Therefore, being billed more frequently gives a consumer less opportunity to offset their high consumption periods with their low consumption periods. A billing period for January and February would likely result in moving onto the higher electricity tariffs because many are using their air conditioners and other appliances to heat their premises. If the bill was issued between January and April, this would give a household the opportunity to use up their cheap electricity during the colder period and make up for it in March and April when it gets warmer, and there is less need for high-consumption appliances.

Government statement

The Energy Ministry said that a review to find solutions is already underway, to assure consumers continue to benefit from solutions to assure they benefit from the best energy prices in Europe.

The statement said that the previous PN administration created the system whereby the bills were being issued.

The statement said that the people and businesses receive €90 million back through the tariff reductions government introduced.