Castro Marim, Vila Real de Santo António and Olhão are the three test councils where Águas do Algarve intends to supply water directly to the consumer.
The current tariff for the sale of water from Águas do Algarve is the same for all the councils, but each then sets the selling price to consumers, some higher than others.
The company that supplies Olhão’s households with water is apprehensive of the water company’s investigations into its practices, and for good reason.
In fact Ambiolhão has rejected the role that Águas do Algarve want to play in supplying directly to its customers.
In a statement today, Ambiolhão states that the "strategy of Águas do Algarve is the creation of a multi-municipal company" a model "that requires some serious reservations" because it may represent "the beginning of the privatisation" of water, which is "completely against" the convictions of Ambiolhão’s management.
The studies at Castro Marim, Vila Real de Santo António and Olhão require disclosure of the customs and practices of the local suppliers.
This required analysis has sent shockwaves through Ambilohão’s structure, "When the study is completed, we will read and analyse it, but we always will have as our main objective the benefit of the population," noted Ambiolhão, stressing that, "at the insistence of Águas do Algarve" it has agreed to provide the information required to prepare the study.
This anti-privatisation argument is designed to hide the real reasons for Ambiolhão's reticence as one of Ambiolhão‘s dirty secrets is the continued flow of waste water into the Ria Formosa’s waters which thus are far from being clear and life sustaining as they are being polluted on a daily basis from clearly visible outflow pipes in the town.
Another problem is that Ambiolhão supplies much of the city for free as the number of water meters is many thousands lower that the number of households receiving water. This largesse is one of the city’s hidden secrets but has been little publicised.
Ambiolhão’s billing defies polite description with many consumers receiving intermittent accounts which enable the supplier to charge for water at a higher m2 rate than if monthly bills were sent out. Payments received one day or more late have a fine of €5 added and interest is charged at an unregulated rate on overdue accounts.
This sort of sharp practice may not be allowable under an Águas do Algarve regime which, despite its monopoly position should it supply the region’s households directly in the future, at least may be accountable to a regulator, unlike many local councils which treat water supply as a profit centre while ignoring the howls of protest of consumers.
The region’s councils owe Águas do Algarve around €70 million in unpaid water supply invoices and the strategy by the company may be pushed through using these debts as a useful tool to take over plant and infrastructure.
In the meantime a lack of cooperation can be expected from local council water suppliers as each will have something it would prefer not to divulge.
