The company Tranvía Vélez (Travelsa), concessionaires of the much-troubled tram system operating between Torre del Mar and Vélez-Málaga, has proposed increasing the technical rate from €1.68 to €2.25.
Under the concession agreement, the Council pays the difference between the technical rate (actual cost of a ticket) and the ticket price charged to customers. At the moment, the technical rate is €1.68 and the ticket price to the consumer is €1.30, which means the Council pays a subsidy of €0.38 per ticket.
This subsidy has led the Council to become heavily in debt, currently to the tune of around €2 million.
The tram has not, so far, proven to be very popular and a proposed extension of the line, an extra 1,200 metres, has been completed for a couple of years now but has still not come into operation.
The Council is bound by various agreements with the Junta de Andalucia to study the request by Travelsa.