DF lawmakers propose increased water subsidies

Friday, April 1, 2011

Representatives in Mexico's federal district (DF) legislature have proposed increasing water rate subsidies from 44% to 84% for some residents of the capital.

The increase would apply to lower-income residents on a fixed water rate and to residents with metered water who receive the service for limited hours of the day, paper El Universal reported.

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The proposed subsidy would benefit some 60,000 residents that were hit by excessive charges in the first water bills of the year, according to representative Valentina Batres, president of the DF legislature's finance committee.

The measure is expected to be approved by the legislature next Thursday (Apr 7), Batres said.

The representative also urged city water utility SACM to better supervise the firms responsible for charging for water, the paper said.

Historically, the DF has had some of the lowest water rates in Latin America, barely covering the cost of maintenance across the 12,000km distribution network. Damaged pipelines mean around 40% of the 1.09Bl of potable water produced each year is lost due to leaks.