The Government called a public hearing for May 19 to study the proposed adjustment to the rate of Argentine Water and Sanitation (AySA) and define new prices for water and sewage services. The Secretariat of Infrastructure and Water Policy has called a hearing for that day, the increase will be in two tranches: 20% in July and 10% in October for 2022.

The proposal was published on Tuesday in the Official Gazette by resolution 42 of the Ministry of Public Works. The AySA proposal is presented in its annexes, described a “long -term” situation indicating that “current rate levels are significantly lower than those established as economic-financial balance in the regulatory framework.”

“Rate revenues are not sufficient to cover all costs incurred from the provision of services,” the company led by Malena Galmarini said in its presentation.

AySA raised its rate adjustment proposal to the Secretariat of Infrastructure and Water Policy of the Ministry of Public Works, whose tenure was vacant, so that the competent authority became the Secretariat of Public Works.

The state company indicated that in December 2021, tariff revenues only covered 49.5% of operating costs, a situation that could worsen if the tariff freeze that began in early 2019, continues in the last phase. of the Presidency of Mauricio Macri.

To avoid this, the company promoted an initial increase in the “K” coefficient of change of 20%, which is from the current value of 37.2918 to 44.7502 on July 1, plus another 10% increase in October, where coefficient is found at 49.2252.

The two cumulative increases represent an increase of 32% over the year.

AySA has not received subsidies to finance current costs in 2021, but received $ 2,452 million for attention to capital costsaccording to a report by the Argentine Association of Budget and Public Financial Administration (ASAP).

The company outlined the rate situation in 2022, when after the collapse of the convertibility regime, contracts with public service companies were negotiated again.

Previous administrations

The water service operating in the metropolitan area is managed by the private company Aguas Argentinas.

“From 2002 to 2011 the tariff freeze was complete”, he pointed out, to add that last year there was an increase of 290% for a range of 169,671 users and 74.35% for others.

However, AySA assured that the range of rateable costs continues to worsen “Despite this increase dropped to 29% in 2013.

In macrista management, successive increases in rates are applied, especially one “exceptionally important” by 216.7% in 2016which brought cost coverage to 77%, AySA said.

The final adjustments were all in 2019, 17% in January and 27% in May.

YN