Ana Maria Gonçalves
It is not clear that the gains achieved with a greater efficiency are reflected in consumer prices.
The Government expects that the new concession contracts between the Águas de Portugal (AdP) and municipalities will generate savings of € 4.1 billion in bills payable by municipalities to the state company.
The value calculated for the concession period will be increased to 30 years, is only, however, passed on to families and businesses, if the local authorities, who must setting tariffs, the later will decide.
The future territorial reorganization of AdP, which will start in 2015, will entail a reduction in the current 19 to five systems of water supply and sanitation, thus involving 227 municipalities.
Municipalities whom AdP provides these services have from now 45 days to advise on aggregations, concession contracts and new studies of economic and financial viability of the companies.
The new model of the sector will yet, according to the Executive, a reduction of € 2.7 billion in operating costs and EUR 724 million in personnel expenses.
Another aim is the elimination of the tariff deficit in the sector, in horizon of 25 years. In 2013, this was EUR 564 million.
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