Enacal tariffs unsustainable, regulator says

Thursday, March 17, 2011

Nicaragua's potable water sector has losses of some 52% due to unpaid water usage and poor infrastructure, the coordinator of the executive branch of national water and sewerage regulator INAA, Marcio Berríos Escorcia, told BNamericas.

A large part of the problem is the inability of national water and sewage utility Enacal to collect payments from the 350,000 people estimated to have illegally tapped into the potable water system, Berríos said.

The utility is also using a tariff schedule that expired in 2006 and means the company is unable to carry out maintenance and infrastructure improvements, the official added.

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"Enacal, because of the situation it's currently in, has not presented a development plan for a new tariff agreement to the regulator," said Berríos.

The full interview with Marcio Berríos Escorcia is published in this week's Water & Waste Perspectives, for subscribers only.