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The government of Mexico's federal district (DF) is planning to write off 70% of users' fines, charges and costs incurred for reconnecting potable water service in the capital.
The move is expected to benefit thousands of debtors in the city who do not have the resources to pay off accumulated fines, according to left-wing PRD party legislator Aleida Alavez.
DF water utility SACM is currently unable to reconnect customers without generating extra fines, local daily El Universal reported.
The city government plans to reveal its payment reduction scheme next week, with the plan becoming effective during the 2011 fiscal year.
Under the program, customers will pay 20% of their accrued debt in an initial payment, covering another 10% within 12 months. Customers that fail to make payments will be obliged to repay the whole debt, the report said.