Kim Kataguiri: The proposal presented is based on preserving the economic-financial sustainability of service provision contracts throughout the Country, ensuring that concessionaires do not experience abnormal gains or losses of revenue, so as to guarantee the continuity and adequate provision of services.
Kim Kataguiri: To that end, the substitute provides that contracts and other instruments of service granting in force must be adjusted within 4 years from the entry into force of the law originating from these bills, by means of a transition plan approved by the competent regulatory entity.
It is important to point out that the model we are proposing for composing the tariff for water supply and sewage—fixed portion plus variable tariff (without charging a minimum consumption)—is already being adopted by several Brazilian concessionaires, such as Saneago — Saneamento de Goiás S.A.; Copasa — Companhia de Saneamento de Minas Gerais; Casan — Companhia Catarinense de Águas e Saneamento; and Caesb — Companhia de Saneamento Ambiental do Distrito Federal.
Kim Kataguiri: In short, the substitute presented seeks to reconcile tariff justice, economic-financial sustainability and the rational use of water resources.
Kim Kataguiri: The proposal overcomes historical distortions associated with charging minimum consumption allowances, without compromising regulatory stability or the continuity of service provision at adequate levels, by establishing a gradual transition, technically grounded and conducted by the competent regulatory entities.