Colombia's Water Regulation Commission (CRA), Housing Ministry, and Superservicios unveiled a new tariff framework for drinking water and basic sanitation affecting 5,000 providers. The change excludes projected investments from tariffs, billing only those completed year-to-year. Andesco raised concerns over the lack of a transition period and potential tariff hikes.
The Water Regulation Commission (CRA), Housing Ministry, and Superintendence of Public Services unveiled the new tariff framework for drinking water and basic sanitation for about 5,000 providers in urban and rural areas, serving 30 million Colombians, according to the CRA. The key change excludes projected investment costs over 10 years that were not always realized from tariffs, shielding users from inefficient transfers. 'Users paid for investments projected over 10 years but not always carried out,' said Superintendent Felipe Durán Carrón. Providers will now bill only year-to-year completed investments, subject to adjustments, potentially lowering final tariffs. CRA Director Gloria Narváez stressed reviewing cost structures for 'the fairest tariff.' Housing Ministry's Undersecretary for Water and Sanitation Ruth Quevedo noted that 80% of tariffs relate to investments, with 25% funded by users. Remuneration will align with actual production costs, not investment expectations, Durán added. Small providers and community managers will follow a separate framework announced in May. Preparation starts June 1, 2026, until December 31, with implementation on January 1, 2027, per the CRA. However, Andesco, led by President Camilo Sánchez, warned of risks from no clear transition and substantial changes from the citizen participation version sent to the SIC. The guild claims the framework takes effect July 1, 2026—contrasting official dates—without enough time for tariff studies, investment plans, and adaptations, especially for small rural providers. This could lead to tariff hikes, operational issues, and service disruptions amid rising energy and input costs. Andesco calls for reviewing the rollout to prevent impacts.
