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The Mexican senate has called for a public consultation on the proposed decentralization of federal district (DF) utility SACM, according to a release.
DF mayor Marcelo Ebrard proposed SACM's decentralization earlier this year to strengthen management of potable water, drainage and sanitation services.
The bill anticipates the participation of private companies in the provision of water services. The senate considers this to be a privatization of services, which will seek to make a profit "to the detriment of social and environmental values", the release reads.
Under the terms of the bill, the new authority rather than the legislative assembly will have the power to fix water rates. This may affect the welfare of the capital's residents, said the senate.
SACM head Ramón Aguirre has said the utility needs to run independently to improve efficiency and prevent the deterioration of service, and that the separation will increase SACM's efficiency by 5% each year.