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.
Kim Kataguiri: By imposing payment for unused volume, the model punishes the consumer who uses little water and discourages the rational use of natural resources.
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.
Kim Kataguiri: It is important to recognize, however, that sanitation services have relevant fixed costs, such as the maintenance of networks and treatment plants and the permanent availability of infrastructure, which need to be financed in a stable manner.