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Portugal Experiences Major Water Company Reorganisation

Lisbon's Water Aqueduct

Published on 1st July, 2012

Águas Públicas do Alentejo announced their upcoming integration with Águas do Algarve, a major reorganisation that is to result in four water-provision regions in Portugal: Lisbon, Centre, North and Alentejo and Algarve.

Before the announced merger, Águas Públicas do Alentejo was responsible for the providig water to 21 different municipalities. The integration has already received approval on the local board level.

This move was needed as part of an attempt to harmonise tariffs across the country. Águas de Portugal representative Manuel Frexes said that the pricing per cubic metre of water throughout the country should be equalised by 2013. The price is expected to range between 2.5 and 3 euro per cubic metre of water.

Frexes said that the water supply network in Portugal will not undergo privatisation. It is still possible for private entities to participate in the four regions, he said.

Águas Públicas do Alentejo’s merger is also expected to streamline the processes within the water provision group. The merger is also going to attract capital according to initial predictions.

The merger produced controversy. Many people wonder why the new prices of water are higher than the previous ones and how, as well as whether, the companies will stand behind the changes that are determined on a national level and by municipalities.

An editorial piece on the merger said that the new region comprised of Algarve and Alentejo has to gain some financial control and independence in order to be efficient and to truly implement uniform billing.

Águas Públicas do Alentejo is a management body responsible for the planning, construction, operations and management of public water systems. As already mentioned, the company provides water to 21 municipalities or a surface area of 16,182 square kilometres.

According to official information, Águas Públicas do Alentejo produces six million cubic metres of water on an annual basis. The company serves approximately 95,000 customers.

Currently, the company is in charge of the water supply, wastewater treatment and sewer system. The report of the merger got many wondering about the current prices of water. The sum of 2.5 or 3 euro per cubic metre of water is a base amount. Taxes and charges related to the treatment of waste waters are expected to bring up the price even further.

Águas de Portugal owns and manages a group of shareholdings. The companies are a part of the network after winning a concession and are owned by Águas de Portugal in partnership with the respective municipalities.

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Published in: Guide to Portugal / Portuguese Life