€8 million Canal Gestión claim against Lanzarote Water Consortium rejected

A Canarian court has rejected an €8 million claim by Canal Gestión against Lanzarote’s Water Consortium.

Canal Gestión claimed that it was owed €8.08 million by the Consortium to compensate for loss of income during the Covid pandemic.  They alleged that the sharp drop in income arising from tourist and industrial tariffs entitled them to compensation.

The Consortium argued that public services had been guaranteed during the pandemic and there was no breach of contract. 

The claim was fully rejected by a court of first instance in Las Palmas, although it is subject to appeal in the Canarian High Court and, possibly, Spain’s Supreme Court.

The Water Consortium assumed managership of Lanzarote’s water supplies in June this year after alleging that Canal Gestión had been in breach of contract.