The Catalan government is preparing important increases in the water fee, one of the rates included in the bill for this service that users pay. This is stated in the draft law on fiscal and financial measures that accompanies the draft budget of the Generalitat for the year 2024, which the Government must approve today. The forecast is that these increases would come into force in 2025. The increases could be between 28% for domestic uses and much higher amounts for the industrial sector.
The water fee allows the Catalan Administration to obtain resources to carry out hydraulic and sanitation works, and represents approximately 40% of the total amount that the user pays in the water bill (in which this fee is integrated together with the other components, such as the cost of water itself or waste treatment fees and other taxes). However, it has not been updated since 2017.
In total, it is estimated that the water fee collected by the Catalan Water Agency (ACA) would go from around 464 million euros to more than 612 million euros, according to some estimates.
The fee collected on water bills affects three groups of users: domestic users, those who have their own water supply sources (wells…) and the supplying entities that must also pay for the water supplied.
According to known documents, it is estimated that the fee for domestic uses will rise on average by approximately 28% for domestic users who consume between 6 and 9 cubic meters per month (which are the vast majority).
This 28% increase is in line with the increases announced a few months ago by the large company of the Generalitat (Aigües Ter-Llobregat), a supplier of high-volume water to the municipalities, which agreed to increase its rate by 30% to the supply companies and the town councils, and which are now being passed on to the users.
If these estimates are met, all domestic users in Catalonia would pay up to an additional 74 million euros.
Likewise, for non-domestic consumption, such as industry, the forecast is for increases of 40%, so that the business community will have to cover an additional 77 million euros as a whole. The industry is now suffering from 25% supply restrictions, although the Catalan Water Agency promises flexibility if they have already adopted efficiency measures and present savings plans (to be analyzed).
Likewise, for homes without consumption, the increase will be 35%.
All these estimates have been made based on the changes foreseen in the configuration of this rate. The Generalitat’s forecast is to eliminate the minimum consumption, that amount that is billed to domestic users (and industries) even if it is not consumed. And that is why what is done is to introduce a new tariff structure for the canon. With the new formula, the minimum is replaced by a fixed fee (regardless of the consumption that will be made).
Now, users pay on the bill (which is made up of four sections) a minimum amount regardless of their consumption (a measure that has always been the subject of discussion), so that if the minimum of 6 is not consumed at home m3 per month, the minimum is billed the same. That is, whether you consume 2, 4 or 5 m3, 6 m3 is billed; and from that minimum threshold of 6 m3 you pay based on consumption.
Now a change is made in the rate structure; This minimum is eliminated and replaced by a fixed fee. But it applies to everyone. Regardless of consumption, a monthly amount of money will always be paid, and it does not apply to those who consume less than the stipulated minimum but to everyone. For this reason, a mere change in structure means an increase in very high incomes, since the situation is taken advantage of to penalize the consumption of the highest brackets, say the same sources.
(For domestic uses, the fixed part is one euro per month within the first tranche; 2 euros per month in consumption up to the second tranche; three euros up to the third tranche; and four euros per month in consumption from of the fourth section).
Furthermore, in the event that consumption is zero, the fixed part will be 4 euros per month).
The escalation of prices is increased by focusing this increase in prices on the third and fourth sections, which rise a lot. This measure serves to encourage savings; and that is why consumers who enter the third section must be vigilant. The 19th cubic meter consumed, which until now was paid at 4.5 euros per cubic meter, would be paid at 5.5 euros per cubic meter.
THE ACA also plans to increase income from the fee paid by supplying entities. Water companies pay 7% for water served and 20% for water not served (losses, undercounts, fraud…), a percentage that now increases to 40%, according to these same estimates.
