AySA will apply service cuts and restrictions to those who do not pay for water: some 700,000 users, in its sights

The state company Argentine Water and Sanitation SA (AySA)responsible for providing water and sewer services for the Buenos Aires Metropolitan Area (AMBA)announced that it will begin to cut off and restrict the service of users who have debts. However, today, the total removal of water supply to residential homes is a practice that is prohibited by law.

This practice has already been implemented in recent months, according to Scope the Flacso teacher and member of the Infrastructure and Productive Development area of ​​the Argentina Grande Institute, Hernan Herrera. What the company does when cutting off the supply to the residential user is “leave a minimum flow,” he comments.

AySA will cut off the supply to some 700,000 delinquent users

As reported AySA, will begin to apply cuts in water supply for residential and non-residential users register up to two consecutive periods of non-payment of their invoices. The first interruptions would be made to users who have larger debts. “There are people who have not paid since 2006,” they noted from AySA. The company’s magnifying glass is focused on some 700,000 delinquent users, which represent 16% of all clientsthey reported.

“The cut is one of the options that the company has to go out and claim debt,” they noted. But the measure comes in a context in which the service fee increased by 305% between December 2023 and November 2024as reported Tariffs and Subsidies Observatory of the University of Buenos Aires (UBA) and Conicet. That is to say that quadrupled. And, to this cost, an increase in the 189% of the light serviceother 564% of gas and a 601% of transportation.

This happens in parallel with Salaries increased well below the average increase in services. What’s more, the percentage of income that a worker currently allocates to that item is much higher than what he or she spent last year: while That basket cost $28,651 in December, now it is $134,173according to the Observatory.

AySA will cut off service to delinquent users: is it legal?

Yes ok the company has the power to restrict or cut off service for non-payment according to the article 81 of its Regulatory Frameworkapplies differently to residential and non-residential users. It should be noted that, until now, this power was not made effective, since the State understood that water is an essential resource for the functioning of industries and businesses as well as for homes. However, the bias of the current government of Javier Milei It made both companies and the State have as a premise the economic-financial balance when operating, something similar to what happens in public administration.

So much so, that the state water and sanitation company already has an action plan on its agenda to begin its process of privatization, since it was included in the list of companies to be concessioned and/or sold that was included in the Law Bases. The options, so far, are opening the capital to the stock market or starting a bidding process to sell a part of the shares in the hands of the Argentine State, if possible, a large part so that the private sector obtains the largest participation. in the company be the new controller.

The Government seeks to sell the company despite the fact that AySA It has already left behind the operating deficit it used to have and even plans to end the year with a surplus close to $100,000 million, thanks to the tariff adjustment (305%) and the debt regularization plan that was implemented.

“Beyond seasonality, the increases, which were 230 to 300%, clearly are above inflation between November and November. Therefore, the fact that they are now forcing the restriction of residential water when it is a human right, because it is part of essential life, seems aberrant to us. Instead of generating a policy of care for households that are not having a good time, what they do is think only about business and in this way a country is not built,” Herrera added.

The truth is that this allowed the company’s administration to improve the numbers. “The accumulated economic results until September 2024 show a decrease in the adjusted operating deficit of 112%, equivalent to -$309,000 million ($-278,000 million in 2023 vs. $31,000 million in 2024)”stated official sources, who boasted of not receiving transfers from the State for operating expenses since June.

Herrera added that this is also because “There are very few water works in progress” and it is part of the Government’s policy of “closing the National Entity for Water and Sanitation Works (ENOHSA)”which is in charge of planning, executing and managing water and sanitary infrastructure works throughout the country.

The investment of the national public sector, if the cash base execution is observed in real terms of the accumulated of the first 10 months of 2024 over the same period of 2023, shows a drop of 78.2% in matters of water and sanitation, he specified.

AySA will cut off service to delinquent users: who may be left without supply?

Despite all this, the Government seeks to advance its plan to improve the profitability of the water company and will move forward with service cuts. Official sources explained to this medium that The cut “is one of the options that the company has to go out and claim debt”since at first the notification and the claim arrive on the invoice, then emails and telephone calls are made to the debtors requesting the regularization of the arrears and, only then, does it reach the court instance.

As was said, the Aysa Regulatory Framework establishes that only a “total cut” to non-residential users, as shops, industries, banksetc. While, For residential consumption, only a “restriction” can be applied to the service, which is through the placement of a seal that limits the water pressure..

Exceptions

In addition, the regulations include specific exceptions for sensitive institutions, such as hospitals, sanatoriums, prisons and users with social rate.

Likewise, it establishes that the service will not be cut off to “any person who is in a debt regularization plan or have social rate and is in debt treatment,” according to official sources. They highlighted that, “if there is a payment commitment, the cut is inhibited.”