Of this sum, 61 per cent is owed by commercial customers such as shops, small factories and self-employed people. Domestic households account for Lm4.2 million of the sum (23 per cent) while hotels owe Lm1 million and larger industries, on the other hand, only owe Lm0.3 million.

The source explained that both corporations were being bogged down due to cashflow problems stemming from the current situation.

The source said that in conjunction with the drive, both corporations were set to review their billing systems to ensure payment is made easier. “It stands to reason, a bill of three months is a lot easier to pay than a bill of seven months,” he said.

He explained the law at present. “Although current practice is to give a 90-day period for payment, if a customer does not pay his bill within 45 days, he is liable to pay interest as from 15 days of when the bill was originally issued. As from today, the 45-day rule will come into force,” he said.

The source said that at present, four per cent of the population were causing the remaining timely customers to subsidise their outstanding bills.

“This is not fair on those people who pay their bills on time. We are focusing on enforcement.

“But as yet, it will only be the category of debtors I mentioned earlier, those who have owed more than Lm100 for more than a year, who will be tackled,” he said.

He informed TMID that an awareness campaign will be launched by means of adverts in the local media that will explain the situation to people. “They will have till the end of November to settle their accounts, and if they have not done so by that time, we will even send them a letter highlighting exactly what they owe,” he said.

The source said the government was even prepared to show grace in waving interest fees if people settle their account up till the end of November. “If they do not settle, they will be charged interest as of 15 days from when the bill was issued,” he said. If people do not settle their bills by this coming January, their services will be suspended.

“And I must also point out that disconnection of each service is billed at Lm30 each, as is re-connection, so people could be faced with paying Lm120 to be reconnected,” he said.

The ministry source made it quite clear that the government was prepared to give these people a chance to settle their bills, but if they did not comply, then the bricks would come down on them hard and fast. “It is in outstanding debtors’ interests to pay off what they owe,” he said.

He also said that the corporations were not any longer implementing social measures. “They will no longer allow bills to be paid off in instalments. They must be either paid on the spot or they can go to a bank and arrange for a standing order to be issued,” he said. However, both corporations have the discretion to allow an extension of the normal standing order period for a bill of six months to be extended at a lesser monthly payment.

The source said bounced cheques will also be another issue that will be tackled. “If a cheque bounces, the corporations will make one attempt to contact the client and inform him or her of the situation but if the money is not paid after that one “warning” there will be an immediate suspension.”

He said people needed to understand that Malta had very low tariff rates for both water and electricity. “If you had high rates, a four per cent non-payment rate would have minimal effects. But when your rates are as cheap as ours, the remaining amount does not cover for the four per cent unpaid,” he said.

He said that apart from the billing cycle review, the corporations are introducing measures that will allow people to pay by means of plastic debit cards.

“We are focusing on enforcement. We will chase the money, but we will also bear in mind the social aspect. Some social cases, for example, will not pay the service charge. But people must also realise that there are 11,000 social cases on the books of both corporations,” he said.

The source also divulged that by the end of the first quarter 2005, the government would issue a request for proposals for a Powerline Communications Grid. This, he explained, is a real-time electronic meter that would allow the WSC and Enemalta to know the exact consumption of households or businesses at any given time.

“This will definitely cut down water and electricity theft, and it will also enable us to perhaps have different rates for peak and off-peak hours,” he said.

“This is not rocket science, it is something that is easily implemented and could save us a lot of hard work and money. People could also top up a pre-paid account with this technology, much like a mobile phone,” he said.