Over the last five years, water rates in the hands of the company Taigua have risen 42%, while, compared to the previous management, the investment in infrastructure was less than half. Added to this is that the system today is inefficient, due to lack of renewal and maintenance.
The Urban Services Observatory (OSUR), which evaluates the quality of municipal public services, has carried out a study on the management of the public company Taigua, responsible for the water supply in Terrassa since 2018. This city was an emblematic case of the remunicipalization processes of water managementwhich Osur has followed up and analyzed. In this specific case, the Terrassa City Council replaced the private company Mina Pública d’Aigües de Terrassa, which had operated in the municipality since the 19th century, with the public one. Taigua.
The report, based on public data, reveals that, since the change in the management model Five years ago, water rates have experienced an increase of 42%, almost doubling the increase in other cities of similar size, whether publicly managed or public-private, which put the average increase at 21%. This increase has been justified as necessary to balance Taigua’s accounts. However, the data in the report reveal that the rate increase has not been accompanied by an improvement in the quality of service or the efficiency of the system.
Less maintenance, investment and efficiency
The OSUR analysis shows a decrease in the hydraulic performance of Taigua, which has gone from 80% in Mina’s time to 78% today. This implies that, to cover the same demand for water, Taigua must buy 2.6% more than before, due to the higher losses in the supply networkwhich point to a lack of infrastructure maintenance. The absence of adequate investment in the network is causing a progressive deterioration of the facilities, which can translate into higher repair costs and loss of efficiency in the medium and long term.
In economic terms, the report highlights an increase in personnel expenses of 56% since municipalization, due to a 30% increase in staff, without this having translated into a greater number of direct services. At the same time, investment in maintenance and renewal of infrastructure has decreased by 31.6%, which could be related to the deterioration in network efficiency and the quality of service.
The investments made by the operator between 2019 and 2023 were 14.16 million euros, a figure that contrasts significantly with the 20.06 million euros that the previous service manager invested in its last five years of contract (2012-2016 ). Fits highlight that almost all of Mina’s investment went into network improvements while Taigua dedicated around 60% to this purpose.
Municipalization in rates and sustainable model
OSUR highlights that the decision to assume water management directly in Terrassa It was taken with the premise that, as it is a public company, costs would be reduced by eliminating the item intended for business profits and the corporate tax bonus. However, the study reveals that the profit item was absorbed by other cost items, including “indirect costs”, and that tax benefits and the free assignment of network facilities have not compensated for the imbalances in management. , which has led to the drastic increase in rates to avoid losses.
Conclusions of the report on Taigua
The experience of Taigua in Terrassa reflects the challenges associated with the direct management of a service as complex as water supply, in which the municipalization must be based on feasibility and efficiency criteria. In the case of Terrassa, the rate increases and the reduction in hydraulic performance indicate that the decision has implied high costs, both economic and technical, which have been passed on to users. The lack of adequate maintenance and the increase in operating costs have reduced the fiscal benefits of direct management, suggesting the need for a more exhaustive analysis in future remunicipalization processes.
The management of a system of complex urban services requires an approach based on ensuring that, in addition to having financial sustainability, The service to citizens will be efficient and of quality. And this is something with which Taigua is not fully complying.