Wednesday, October 1, 2014

Water: Municipalities save € 4.1 billion with … – TSF Online

Water: Municipalities save € 4.1 billion with … – TSF Online

One of the main goals of the plan Moreira da Silva is to solve the problem of rising tariff deficit of Águas de Portugal (AdP), which totaled 564 million euros at the end of last year, and halt the debt of municipalities to companies group amounted in 2013 to EUR 560 million.

Recently, the government approved legislation requiring municipalities to transfer half of the revenues from water and waste for the companies that provide them these services and can not use the money for other purposes, a diploma will be implemented from March 2015.

The document of the Ministry of Environment, Spatial Planning and Energy (MAOTE) highlights that the costs of the sector are 12% higher revenue and that three quarters of the municipalities generate only 27% of revenues, representing an annual loss of over EUR 160 million.

The restructuring of the sector relies primarily on mergers of companies in high (which provide water to municipalities) and vertical or horizontal merging into low (water distribution to the household).

19 water supply and wastewater disposal that currently make up the state AdP group systems will lead to only five regional systems at the end of the restructuring.

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