The water sector in high integrated into the universe of Águas de Portugal will be left with only five companies, from 19 currently available: the Waters of the North, the Central Coastal Waters, Waters Lisbon and Tagus Valley and EPAL Public Waters of the Alentejo and the Algarve waters. The aim is to reduce the amount of fees charged to municipalities EUR 4.1 billion compared with current contracts.
The Environment Minister, announced yesterday that the final draft of the restructuring of the sector, argued that this operation is intended to promote “territorial cohesion by aggregating the current 19 municipal systems in five larger systems, maximizing gains of scale and scope, with the rate benefits, reducing the tariff disparity and normalizing the relationship with municipalities. ”
The plan states that the new concessions will have a term of 30 years, less than the 50 originally planned, and minimum flows cease to exist. At the same time, points out that all companies that are not related to the principal activity of Águas de Portugal in 2015 are extinguished or alienated.
The Minister further states that rates for high (collection and treatment) will immediately descend in three quarters of the municipalities involved, rising progressively in just one quarter of local authorities over the next five years, since with the effort to rationalize and aggregations, you can reduce the rates 13.26%, compared to tariff developments expected in the aggregate up to 2025 companies However, the final price to the consumer will depend on who does the management downwards, which can be municipalities, multi-municipal or private companies.
For example, the accounts of the ministry, the municipalities of Tras-os-Montes and Alto Douro decide that fully transfer the benefit of the lowering of tariff for the high end consumer can lead to final customers have a reduction in the water bill that already consume 3.1 euros in 2015
The current scenario is the high tariff asymmetries, reaching the Interior to pay triple what is paid on the coast. “This model will increase social cohesion through a high tariff harmonization in the mainland for a 11.1% tariff band”, also defended Moreira da Silva.
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