The Alenquer City Council will increase water rates and pay 530 thousand euros to the concessionaire of water and sanitation services, within the framework of a business financial rebalancing agreement approved by the Municipal Assembly.
The 6% increase in water rates “will come into effect before the end of summer”the mayor of Alenquer, Pedro Folgado (PS), told the Lusa agency this Monday. after the approval, by the Municipal Assembly (AM), of an agreement between the municipality and the Águas de Alenquer company (ADA).
The financial rebalancing proposal provides, in addition to the increase in rates, “to compensate the company for not updating prices for eight years”, the payment of 530 thousand euros to the company, “as compensation for the losses caused by the delay in entry “the Wastewater Treatment Station (WWTP) is operational,” the mayor explained.
The proposal also included two demands that the Chamber did not acceptone refers to compensation for the extra cost of maintaining the pipes due to lime in the water and the other to the value of the water flows consumed by the municipality, 20% lower than initially planned.
The agreement, considered “favorable” by the socialist majority, was approved with votes against by all opposition parties, and PSP and CDS presented an alternative proposal, so that the increase in rates would be done in stages, with increases of 2% annually, over the next three years.
Meeting on Friday night, the Municipal Assembly also approved a memorandum of understanding between the municipality and the ADA, in which they commit to present, before December 31 of this year, “an in-depth study on the measures necessary to achieve the tariff reduction.” in the following years and until the end of the concession contract”, in 2033.
“The objective is for the savings achieved by the company, through these mechanisms, to benefit consumers, if this is not possible, in the coming years, by reducing rates, at least to prevent them from having to return To do it. increase,” explained Pedro Folgado.
The memorandum, to which Lusa had access, determines that the two entities must evaluate the estimated effective profits and establish an investment plan in the water and sanitation networks and the respective calendar..
“Compensation mechanisms” will also be negotiated for the Alenquer Chamber, in the Lisbon district, “for future investments in the municipal public network” until the end of the concession.
In addition to the PS, the memorandum received favorable votes from the PSD, which in the session presented a proposal for the contract with the concessionaire to be subject to evaluation by two law firms.
Since 2016, Águas de Alenquer has been asking for the financial rebalancing of the concession, which presupposes an increase in rates, but the municipality opposed this increase.having even considered ending the concession to private companies, before the contract ends, in 2033.
In June 2022, the Alenquer Municipal Assembly recommended that the city council maintain the water and sanitation concession until 2033, trying until then to reach an agreement to rebalance the concession without increasing rates.
If it is impossible to sign this agreement, The assembly now gave the green light for the municipality to increase rates, a measure that had the favorable opinion of the Water and Sanitation Services Regulatory Authority.
Source: Observadora
