The resolution of the conflict between water company Infralobo and groups of residents has been on hold pending a court decision, but now has escalated as dozens of properties have had their water supply cut off in the Vale do Lobo area.
The public-private company Infralobo, owned 51% by Loulé council, has ignored an instruction from the water regulator to wait until the court decides on the legality of an additional ‘per bed’ supplement charged by Infralobo on top of water supply bills.
Dozens of properties in three areas of the luxury Vale do Lobo estate have been cut off since Monday or Tuesday, after Infralobo failed to persuade householders to sign new supply deals and to pay off arrears created by a unilaterally imposed ‘per bed’ tax added to water bills.
The additional charge adds €100 to monthly water bills for a three bedroom house. This is in addition to the water supply which already is famous for being the most expensive in Portugal.
Technicians from Infralobo have spent the past two days removing water meters and capping off supply pipes at Vilas Alvas, Quinta Jacintina and Vale do Garrão claiming that as there was no contract between the company and the householder to supply water, customers have no entitlement to a water supply.
A few incandescent owners caved in and signed the deal, paying off disputed arrears and having their water suply reconnected.
A local lawyer acting for the residents, Campos Rodrigues, said that under the legislation covering essential basic services and consumer protection, consumers in this instance have the right to pay only the part of the bill which relates directly to the supply of water.
Householders of course accept they should pay water and sanitation charges, despite the eye-watering mark-up on water, but many refuse to pay the additional per bed tax.
This dispute has being going on for nearly two years and has ended up in various courts and on the desk of the Regulatory Authority of Water and Waste Services (ERSAR) whose advice to Infralobo simply has been ignored.
Last March, ERSAR alerted Loulé council and Infralobo to the fact that the fixed component in the tariffs i.e. the bed tax, was not in line with industry practice.
Orlando Borges, the head of the regulator, has asked Infralobo for an explanation as to why the company felt it necessary to cut off its customers and questions whether Infralobo had followed the legal steps necessary in accordance with the Law of Essential Public Services in advising the possibility of disconnecting customers within a legal deadlines.
Infralobo’s manager José Miguel, Loulé council and the regulator remain unable to organise a brewery excursion, or indeed a billing system that charges customers for the water used.
It is far more convenient for Infralobo to charge a per bed tax, and for Loulé council to benefit from the income, than to ditch the tax and raise water charges to a compensatory level that would make the merely excessive, become internationally known as stratospheric.
As for the recommendations from ERSAR, Miguel sniffs that they "are not binding, but Infralobo will consider their opinions on municipal regulations and the tariff, which will soon be up for deliberation at the City Council."
The judiciary has not helped in all of this mess as the Administrative Court of Loulé decided it was not competent to evaluate the submitted action, passing the case to the local Criminal Court which in turn refused to deal with the case against Infralobo which was accused of charging for services that had nothing to do water consumption.
The case now is heading for a hearing at a conflict resolution court which will decide where the case should be heard.
With Portugal’s legal system again serving only to waste people’s time and money, Infralogo decided to preempt any court decision by cutting off its customers' water supply.
The case is simple enough for a child to understand, according to Campos Rodrigues, "The question that is on the table is, can Infralobo charge for services that have nothing to do with supplying water?"
Infralobo has been accused by one customer of "arrogance, only because it's a monoploy. If we had a choice, not one householder would stay with Infralobo, they are truly awful, rude and uncaring," adding that she regreted ever having moved to the area due to the streess and upset during what was meant to be a calm and peaceful retirement.
The company simple has chosen to ignore its regulator and has taken unilateral action to cut off supplies while a legal case is in progress.
The most expensive water supply service in the country is being delivered by possibly the worst supply company in the country, Infralobo, adept at misusing its economic power and keen to bully its customers.
Infralobo is 51% owned by Loulé council (49% by Vale de Lobo SA) whose mayor Vítor Aleixo needs to get a grip on his wayward child and administer some of the rigour he has excercised over the municipal accounts in the last two years.
Infralobo claims to be 'a solid company with proportionate response to needs, trying daily to be close to our customers!' but its current response is not proportionate and can not be said to be endearing itself to its customers.
