Tariffs to the End-User

The procedure of defining the tariffs is different depending on the operator's management model and can be divided in two groups:

Concessionaires of municipal utilities, regulated according to a concession contract, have to comply with the tariffs update and review formulas set on their contracts. In this case, ERSAR is entitled to opinions on the concession contract template and to supervises what was previously agreed;

All other municipal owned systems (not concessioned) follow different management models. These systems are subject to a different tariff selection criteria, as well as to a distinguished process of tariff approval.

The tariffs set should ensure an adequate return of investment and services operational costs, as well as of environment and scarcity costs. Tariffs should also ensure an acceptable contribution by users from different sectors in cost coverage.

The absence of tariffs or disparities in the criteria used to set those tariffs point to the necessity of defining and harmonizing tariffs in order to allow full recovery of costs with the provision of the different services.