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.
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.
Kim Kataguiri: The simple prohibition of charging for minimum consumption, without a tariff restructuring, could create regulatory uncertainty and compromise the economic-financial balance of existing concession contracts, transferring costs in a disorderly manner.
Kim Kataguiri: Furthermore, a specific ban on charging a minimum tariff only with respect to condominiums with multiple real estate units and a single meter could create serious distortions in relation to other users of the same service, which would compromise the principle of equality, essential for the provision of an adequate service.