Kim Kataguiri: The legislative technique and wording used in the bill are adequate, fully complying with the Brazilian Norm of Legislation Drafting (Complementary Law No. 95 of 1998). b) Merit The charging of a "minimum tariff" or "consumption allowance" stems from a logic of presumed volume which, although historically used to ensure revenue predictability, today produces socially unjust and environmentally inadequate effects.
Kim Kataguiri: By charging for a volume that was not necessarily consumed, the minimum allowance can penalize low-consumption users, such as lower-income families or people who live alone, and encourage waste, since the marginal cost of consumption up to the allowance limit is zero.
By imposing payment for unused volume, the model punishes the consumer who uses little water and discourages the rational use of natural resources.
Kim Kataguiri: Under the current model, a large part of the utility's revenue does not vary according to actual water consumption.
Kim Kataguiri: This situation may even be advantageous from the point of view of the service provider's financial stability, but it generates significant distortions from a regulatory, environmental and social perspective.