The Ombudsman’s Office asked the Public Services Regulatory Authority (ARESEP) not to approve the proposed fixed rate that would increase the price the drinking water service by 24%.
The Institute of Aqueducts and Sewers (AyA) asked the regulator for an adjustment in the rates for the service and for a fixed charge for the aqueduct for 2019 and 2020, with increases 7.7% as of January 2019 and 15% a as of January 2020, for a cumulative total of 24%.
According to the Ombudsman, this would hurt the productive sector and end users. It’s also mentioned that the model used to determine the rate adjustment is based on the rate of return methodology, which has been highly criticized.
Therefore, the Ombudsman asked ARESEP for a review of the investment plan proposed by AyA for 2019-2020 due to the high rate presented by the institution.