Water management on Lanzarote has been “disastrous”, according to Mariano González, the CEO of Canal Gestión Lanzarote’s parent company, Canal Isabel II.
Responding to questions in Madrid’s Assembly, González attributed the company’s losses to the waste of more than 50% of the water produced, which he claimed was due to a lack of investment by the Cabildo and Lanzarote’s seven municipalities.
“It is impossible to reduce losses without investment. And the investment is not the responsibility of Canal Gestión Lanzarote; it is the responsibility of the owner of the infrastructure network,” said González.
He also pointed out that water tariffs have not been updated for years while production costs have risen, and that this made water production unprofitable “no matter how much is produced.”
“The first thing that needs to be done is to update the tariffs,” he claimed, pointing out that two Supreme Court rulings had supported Canal Gestión’s right to raise charges.
González explained that Canal is seeking an orderly solution in the face of the threat of contract termination by the Lanzarote Water Consortium and is seeking another company to take over the existing contract, which last until 2042. If this isn’t done by December 12th, the suit for breach of contract will be reactivated.
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