Asocapitales asked to adjust the CRA’s new tariff framework due to possible risks to local autonomy and financial sustainability.
The Colombian Association of Capital Cities (Asocapitales) warned about the rrisks that the New Tariff Framework project for public services could generate proposed by the Commission for the Regulation of Drinking Water and Basic Sanitation (CRA).
According to the entity, The initiative could affect the quality and continuity in the provision of services in capital cities and compromise the autonomy of local governments.
Asocapitales presented a formal letter to the CRA in which recommends making technical adjustments that allow preserving territorial autonomy, guarantee financial viability and promote a fair transition towards new tariff models.
The document states that Regulatory decisions at the national level directly impact municipal finances, territorial planning and local governancedue to the powers that Law 142 of 1994 grants to mayors as responsible for home public services.
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Although the association supports the intention of the National Government to move towards a circular economy and improve waste managementinsists that changes must be built in an articulated manner with local governments, to ensure coherence between national objectives and the real capacities of the territories.
President Gustavo Petro has indicated that the cleaning fee “It is the one that grows the most within the family basket” and has described the privatization of the service as “a scam.” However, the CRA proposal has generated concerns among recyclers, businessmen, experts, territorial entities and even the Ministry of Housing, due to the lack of effective participation, the insufficient technical studies and the lack of knowledge of the municipal role in rate balance.
Asocapitales warns that The current regulatory design generates operational and financial tensions, which could put the sustainability of local systems at risk. and limit the ability of governments to guarantee the continuity and quality of service. Therefore, it proposes technical and financial adjustments that strengthen territorial autonomy and allow a gradual and sustainable transition.
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In its technical and legal analysis, the association concludes that, although the new framework seeks efficiency and sustainability, it presents risks for the financial stability of public services and the fiscal sustainability of territorial entities.
Consequently, requests the CRA to prepare a regulatory and fiscal impact analysis that measures the economic, social and financial effects of the new frameworkpublish the calculation models and databases that support the tariff proposal, and create a permanent coordination mechanism with local governments to guarantee effective participation in regulatory construction.
Source: Integrated Information System
