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EDP fails to enforce PSD Party's electricity bill debts

psdPedro Passos Coelho’s Social Democrat Party (PSD) owes EDP thousands of euros but mysteriously the party premises have never had electricity supplies cut off.

EDP Comercial appears to have treated the PSD differently to other of its customers who would have been cut off for non-payment of their bills.

Over the past four years there have been EDP Comercial supply contracts for PSD party premises where debts have been accumulated.

In a situation where a customer continues to ignore reminders, the supply company will cut off the supply and finally apply to have bank accounts or property seized to settle the amounts owing.

The PSD’s electricity supply debts have existed for up to three years, seemingly without action being taken by the supply company, run by the multi-millionaire António Mexia.

The PSD owes around €3,000 for electricity used at its party premises while Padro Passos Coelho was running the country. Not a huge amount but it is the treatment of the customer that is at odds with EDP's stated policy in cases of debt.

Journalists from Tugaleaks contacted EDP which said it could not comment on individual customers but the spokesman confirmed that “without exception, all arrears go into a debt warning process."

The EDP debt recovery protocol follows specific pre-determined stages. The computer files in teh PSD's case include reference to "4th attempt to contact without success" and "After several unsuccessful attempts to contact and recover amount owed, registration was closed."

Many struggling customers dream of having their “registration closed” which, in the PSD’s case at least, writes off the debt without disconnecting the supply.

According to EDP Comercial, "This process (the process of debt warnings) comprises several stages, from warnings, to disconnection and contract termination. In cases of non-compliance, and depending on the values in question, the debts will be sent for external litigation or billing mechanisms. The procedure may take several years."

An individual EDP customer would not be allowed to maintain arrears for over three years without being disconnected but EDP is unwilling to explain why a political party, one that recently was running the country, is not subject to the same supply contract rules as other customers.

Tugaleaks investigators have been trying since April 8 to get an answer from the PSD headquarters but the press office has failed to engage.

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