The Water and Waste Services Regulatory Authority will once again have power over defining water tariffs. Mayors fear a rise in prices that will harm smaller municipalities and those in the interior.
The approval of Decree-Law 77/2024, which returns binding power over water tariffs to the Water and Waste Services Regulatory Entity (ERSAR), is generating controversy among mayors.
The main concern lies in the loss of municipal autonomy and the social impact of any tariff increases, especially in areas with low population density and less economic power.
The diploma, approved in October, restores ERSAR’s powers to set tariffs in state and municipal systems, reversing changes introduced in the 2021 Budget Law. According to the National Association of Portuguese Municipalities (ANMP), this measure could lead to municipalities to increase water prices to ensure the sustainability of systems.
2023 ERSAR data reveals large discrepancies in coverage of costs between municipalities. In Santa Maria da Feira, coverage reaches 180%, while in Terras de Bouro it is only 24%. “I am completely against ERSAR having binding power to impose the price of water across the country”, says Manuel Tibo, president of the Chamber of Terras de Bouro, to .
Nuno Vaz, president of the Chamber of Chaves, considers the imposition of ERSAR a threat to the populations of the interior, where average incomes are lower and supply costs are higher due to population dispersion.
The ANMP argues that tariffs should reflect the economic reality of each territory, suggesting solidarity mechanisms between systems to avoid excessive charges in less favored regions.
The idea of a single rate is viewed with skepticism by ERSAR, which considers that prices should reflect different costs. However, mayors such as Manuel Tibo and Nuno Vaz support the introduction of a single tariff, as long as it is accompanied by structural investments that ensure equal conditions between territories.
ERSAR counters the criticism, pointing out that the measure brings clarity and oversight to the sector and refuting the introduction of a single tariff. “Different costs must correspond to different prices. Of course, from the consumer’s point of view, it is more intuitive to have this simplification in contrast to the current situation in which there is a very large disparity in tariffs”, he states.
