Wastewater Tariffs in Spain

Abstract

Urban water cycle services culminate in wastewater services; that is, with the collection, transport, and treatment of wastewater. Wastewater management in Spain is not a straightforward issue. In fact, the European Commission has initiated infringement procedures against Spain for not fully complying with the Urban Waste Water Treatment Directive. Yet, appropriate collection and treatment would require a large monetary investment that is increasingly difficult to carve out of existing government revenues. In this context, wastewater pricing emerges as a significant tool for achieving cost recovery and environmental protection aims. In Spain, local governments are responsible for providing wastewater services in urban areas and for setting the prices for those services. Spanish regional governments are in charge of specific pollution taxes on wastewater, which are included in the individual users’ water bills. Moreover, in most Spanish cities, the urban water tariffs for wastewater services (like water supply tariffs) are different for different users, representing the most common distinction between residential and nonresidential users. Additionally, specific tariffs are frequently imposed for different customer groups within both categories. In this respect, it is common to include pollution charges for industrial users, increasing their water prices according to the environmental impact of their wastewater discharges. The result is a very complex map of water-pricing and taxing in Spain.