Tariff (un)sustainability in contexts of price (in)stability: The case of the Buenos Aires water and sanitation concession |
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| Affiliation: | G-EAU, IRSTEA, Univ. Montpellier, France;CESUR, CERIS, Instituto Superior Técnico, Universidade de Lisboa, Av. Rovisco Pais 1, 1049-001, Lisboa, Portugal;Asset Research, PO Box 144, Derdepark, Pretoria, 0035, South Africa;Crawford School of Public Policy (Building 132), The Australian National University, Lennox Crossing, Acton ACT 2601, Australia;Resource Economics, Inc., Austin, TX, United States |
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| Abstract: | We aim to analyze tariff sustainability in the Buenos Aires water and sanitation concession amidst price instability. We use the 3Ts model (Tariff, Taxes and Transfers) to discuss tariff resetting from 2002 to 2019. We show that both level and tariff structure reflect the national administrations' preferences as regards service cost allocation among stakeholders. Despite the efforts, revenue has been below operative expenditure, which shows the company's difficulty to remain operationally sustainable and the differences between the ex-ante and ex-post burden of the three Ts. We suggest recommendations for the regulator to shield the sector against price instability. |
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| Keywords: | Water and sanitation Tariff structure Buenos Aires |
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