Decree-Law No. 26/2016 establishing Tariff Policy for the Water and Sanitation Sector.

This Decree-Law, consisting of five Chapters and pursuant to paragraph 1 of article 277 of Legislative Decree No. 3/2015 of 19 October, establishes the tariff policy for the water and sanitation sector, including its guidelines and strategies. It applies to all persons with a singular or collective legal nature, public or private, who provide consumers with any of the activities inherent to water supply and sanitation services. The tariff policy for water and sanitation services pursues the following objectives: a) The rational use of water by consumers, encouraging consumption when reduced or controlling excesses through regulatory and control mechanisms; b) Socio-economic equity, that is, the harmonization of the level of services with the economic and financial capacity of the residents of the communities served; c) Social, translated into guaranteeing to all citizens, particularly those with low income, access to a basic and essential service that they are able to pay; and d) Costs recovery incurred by the operators in the provision of services and the sustainability of the services translated into the guarantee of financing for the administration, operation, maintenance and replacement of equipment for the provision of services.