The piece argues for formal adoption and enforcement of the Principle of User-Pays, ensuring costs are borne by users for water services and wastewater management to sustain the sector, enable fair tariffs, and fund modernization.

Data show that in 2023, a large share of municipalities either lacked revenues to cover costs or barely did so, revealing widespread under-recovery of costs and underpricing across the sector.

Water consumption is rising, with non-residential use up about 1.5% and domestic use up about 2% annually, raising concerns amid water scarcity and climate pressures.

The total annual costs for urban water and sanitation reach roughly 1.74 billion euros, while the sector runs an ongoing deficit near 90 million euros, suggesting ongoing subsidies or tax support to fill the gap.

Even as production costs for Portugal’s urban water cycle have climbed more than 20% in five years (roughly 50% above inflation), consumer water bills as a share of household budgets remain extremely low, around 0.6%.

Implementing the User-Pays principle would entail tariff increases in some cases and requires consistent application across all entities and municipalities to correct price distortions.

The argument emphasizes paying what is truly due based on actual consumption, linking pricing to environmental and economic sustainability rather than simply raising bills.