The Plenary approves a budget modification to pay €10 million to Emmasa for tariffs frozen between 2015 and 2023, resulting in a savings of €2.35 million compared to the initial €12.35 million.
The extraordinary Plenary of the Santa Cruz de Tenerife City Council approved a budget modification on Thursday to pay Emmasa €10 million. This amount corresponds to the update of water supply, sewage, and purification tariffs that the City Council kept frozen between 2015 and 2023, during the toughest years of the economic crisis.
The initially planned disbursement amounted to €12,352,329.70, but after negotiations with the mixed company managing the integral water cycle in the Tenerife capital, the final agreement has been closed at €10 million, resulting in a direct savings of €2,352,329.70 for the municipal coffers.
The mayor, José Manuel Bermúdez, explained that Emmasa had submitted a claim exceeding €27.5 million for accumulated deficits in sewage and purification services. However, the legal and technical services of the City Council concluded that it was only viable to pay the delay in the tariff update, dismissing the other items.
“The budget modification approved today marks a definitive turning point in our relationship with Emmasa. With this allocation, the government team not only responds to a financial commitment but strategically closes the judicial route, preventing the entity from going to court to claim higher amounts,” said the municipal leader.
The councillor for Finance, José Alberto Díaz-Estébanez, defended that the adopted solution is the most beneficial for the city. Against the initial claim of €27.5 million, the City Council has managed to recognise only the amount that corresponds legally and, in addition, reduce the final payment to €10 million.
“It is a decision that combines legal rigor, financial responsibility, and protection of public money,” stated Díaz-Estébanez, who added that the file has already been sent to the Consultative Council of the Canary Islands for its mandatory report.
The first deputy mayor and councillor for Public Services, Carlos Tarife, detailed that the concessionaire has formally accepted a write-off on the initial figure. “We went from a commitment of over €12.3 million to a closed payment of €10 million, thus ensuring an excellent result for the municipal coffers and for the residents of Santa Cruz,” he emphasised.
Tarife also clarified that a large part of the €27.5 million claimed by Emmasa corresponds to matters already resolved by the courts or that are still pending judicial resolution. With this agreement, he said, “it allows us to put order and definitively normalise the municipal accounts, providing the necessary stability to continue promoting the growth of the city.”
The effective payment of the €10 million will be made once favourable reports are received from the Consultative Council, the Legal Advisory, and the municipal Intervention. The managing company has adjusted the settlement to the criteria set by the courts and the contract specifications, limiting the compensation to the strict days of administrative delay.
In addition, the City Council has committed to continue updating the services each year to avoid a similar situation from recurring. The periodic update of tariffs is one of the key measures to ensure the sustainability of the water service in the capital, an essential resource for homes and businesses in Santa Cruz.
This agreement represents relief for residents, as it avoids a possible retroactive increase in water bills. The freezing of tariffs for eight years had created a discrepancy that is now resolved with a one-time payment, without passing the cost on to citizens additionally.
The next step will be the processing of the file before the Consultative Council of the Canary Islands, which must issue its opinion before the payment is formalised. The process is expected to be completed in the coming months, bringing to a close a negotiation that has lasted several years.
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