Companies call for an end to subsidies and an increase in water tariffs

Private environmental companies argue that it's time to "change the water sector paradigm," end subsidies, and update tariffs. This change is for the benefit of future generations.

At a time when the Water and Waste Services Regulatory Authority (ERSAR) is preparing a new Tariff Regulation for Water Services, the Association of Portuguese Companies for the Environmental Sector (AEPSA) considers it to be the ideal time to start changing the water sector, “which has been stagnant from the point of view of efficiency and quality of service”.

The president of AEPSA warns of the need for profound changes, immediately adhering to the "user pays" principle. Eduardo Marques believes that updating tariffs is essential, as the prices charged in some municipalities are unrealistic.

According to the official, quoted by the Lusa news agency, it is "a subsidy-dependent sector" and when it is like this "there is no capacity for innovation, for new technologies" and the sector becomes stagnant.

ERSAR was responsible for publishing tariff regulations for water and waste, but in 2021 the Socialist Party government stripped it of this authority, handing it over to municipalities. In October, the previous Democratic Alliance government again shifted the tariff-setting authority back to ERSAR.

Starting next year (after the local elections), ERSAR will once again set tariffs for public systems, but it can also make proposals and recommendations for private systems. The process is currently in the pre-market consultation phase.