Vélez-Málaga Council is considering raising the cost of drinking water by as much as 43% after running up huge debts as a result of keeping the price at an artificially low price.
The Axarquia water supply is controlled by the supra-municipal body Axaragua, who in turn supply the local water concessionaire, Aqualia.
In November 2007, Axaragua raised the price of a cubic litre of water from €0.19 to €0.29. Vélez-Málaga Council refused to pay the increase and, as a result, are looking at a debt of €5 million by the end of the year. The local concessionaire Aqualia has now been presented with a bill for the arrears, some €2.8 million, and the Council feels that it may now not have any option but to raise the price of water to consumers.
The current estimate is that the cost of drinking water would have to go up by around 43%.