Proposed 33% increase in water rates due to high drought costs

Aguas Ter-Llobregat (ATL), the main water wholesaler in Catalonia, under the supervision of the Generalitat, has announced a significant increase in its tariffs from next year. This increase, which amounts to 33%, has been attributed to several factors affecting both the cost of production and the increased demand due to the drought.

Lista
1 Inflation and rising costs: ATL’s financial challenge
2 Challenges in water management in times of drought
3 A change in the 2024 rate calculation
4 Impact on consumers and suppliers
5 A Frozen Tariff Since 2017
6 The 117 municipalities where water prices will rise in Catalonia

Inflation and rising costs: ATL’s financial challenge

The current rate of €0.74 per cubic meter will be raised to €0.99 per cubic meter, resulting in an average increase of at least €1 per month per person in water bills. Since 2017, ATL had not increased its rates, but rising inflation, increased electricity and labor costs have led to this decision.

Challenges in water management in times of drought

Cost increases will be further intensified this year due to ATL’s new electricity supply contract for the 2023-2025 period. This contract implies a 50% increase in the price per kilowatt hour (KWh). Electricity demand has increased due to the increased use of desalination plants, which are operating at maximum capacity due to the drought and are large consumers of energy.

A change in the 2024 rate calculation

Another factor that could influence the increase in water prices in 2024 is the Regional Fixed Fee, which takes into account the volumes of water that each municipality purchases from the ATL network. This fee is intended to motivate municipalities to improve the efficiency of their water distribution networks.

Impact on consumers and suppliers

Although ATL is not the final supplier of water, it plays a key role in the process. ATL’s decision to increase rates will have a direct effect on the rates that end providers will charge consumers. In the coming weeks, Aigües de Barcelona’s proposed rate increase will reach the Metropolitan Area of Barcelona, which covers most of the 36 municipalities that comprise it. The supramunicipal entity must decide whether to approve or reject the proposal. This may be reminiscent of previous years when there were disagreements between Ada Colau’s government and the semi-public company, controlled by Agbar.

A Frozen Tariff Since 2017

Since 2017, the tariff of Aguas Ter-Llobregat (ATL) has remained unchanged. However, the specific request from ATL’s top management is to raise the price per cubic meter of water it treats and supplies to 116 Catalan towns to 0.99 euros. The current cost of its service is 0.74 euros per cubic meter, and once this modification is approved, it will take effect as of January 1, 2024.

The Generalitat has indicated that, according to estimates, this upward adjustment would imply an increase of approximately one euro per month in the cost of water consumed.

The 117 municipalities where water prices will rise in Catalonia

  1. Abrera
  2. Alella
  3. L’Ametlla del Vallès
  4. Arenys de Mar
  5. Arenys de Munt
  6. Argentona
  7. Avinyonet del Penedès
  8. Badia del Vallès
  9. Barberà del Vallès
  10. Barcelona
  11. Bigues i Riells del Fai
  12. Blanes
  13. El Bruc
  14. Cabrera de Mar
  15. Cabrils
  16. Calaf
  17. Caldes de Montbui
  18. Caldes d’Estrac
  19. Canet
  20. Canovelles
  21. Cànoves i Samalús
  22. Canyelles
  23. Cardedeu
  24. Castellar del Vallès
  25. Castellbisbal
  26. Castellolí
  27. Castellví de Rosanes
  28. Cervelló
  29. Collbató
  30. Corbera de Llobregat
  31. Cubelles
  32. Dosrius
  33. Esparreguera
  34. Les Franqueses del Vallès
  35. La Garriga
  36. Gelida
  37. The Pomegranate
  38. Granollers
  39. Els Hostalets de Pierola
  40. Igualada
  41. La Llagosta
  42. Lliçà d’Amunt
  43. Lliçà de Vall
  44. Llinars del Vallès
  45. Lloret de Mar
  46. Malgrat
  47. Martorell
  48. Martorelles
  49. Masnou
  50. Masquefa
  51. Mataró
  52. Molins de Rei
  53. Mollet del Vallès
  54. Montmeló
  55. Montornès del Vallès
  56. Olèrdola
  57. Olivella
  58. Òrrius
  59. Palafolls
  60. Palau-solità i Plegamans
  61. Pallejà
  62. La Palma de Cervelló
  63. El Papiol
  64. Parets del Vallès
  65. Piera
  66. Pineda
  67. Pinos
  68. Pla del Penedès
  69. La Pobla de Claramunt
  70. Polinyà
  71. El Prat de Llobregat
  72. Premià de Dalt
  73. Premià de Mar
  74. Puigdàlber
  75. Ripollet
  76. La Roca del Vallès
  77. Ruby
  78. Sabadell
  79. Sant Andreu de la Barca
  80. Sant Andreu de Llavaneres
  81. Sant Antoni de Vilamajor
  82. Sant Cebrià
  83. Sant Cugat del Vallès
  84. Sant Cugat Sesgarrigues
  85. Sant Esteve Sesrovires
  86. Sant Fost de Campsentelles
  87. Sant Iscle
  88. Sant Llorenç d’Hortons
  89. Sant Martí Sarroca
  90. Sant Pere de Ribes
  91. Sant Pere de Vilamajor
  92. Sant Pol de Mar
  93. Sant Quirze del Vallès
  94. Sant Sadurní d’Anoia
  95. Sant Vicenç de Montalt
  96. Sant Vicenç dels Horts
  97. Santa Eulàlia de Ronçana
  98. Santa Fe del Penedès
  99. Santa Maria de Martorelles
  100. Santa Perpètua de Mogoda
  101. Santa Susanna
  102. Sentmenat
  103. Sitges
  104. Subirats
  105. Teià
  106. Terrassa
  107. Tiana
  108. Torrelles de Foix
  109. Tossa
  110. Vallbona d’Anoia
  111. Vallromanes
  112. Vilafranca del Penedès
  113. Vilanova del Vallès
  114. Vilanova i la Geltrú
  115. Vilassar de Dalt
  116. Vilassar de Mar
  117. Vilobí del Penedès