The Canary Islands Consultative Council has issued an opinion supporting the termination of the contract with Canal Gestión, the company in charge of water services in Lanzarote and La Graciosa. According to the document, water losses exceeding 50% and continuous supply cuts constitute a ''structural breach'' of the agreement.

The opinion, requested by the president of the Lanzarote Water Consortium, Oswaldo Betancort, states that Canal Gestión's primary breach relates to service operation and the ''essential obligation'' to ensure regular supply and reduce losses below 30%. However, these losses have reached 55%, indicating ''a lack of effective control over the network'' and inefficient management systems.

These high losses have directly impacted public service provision, causing daily supply interruptions in homes and farms. The Consultative Council emphasizes that these are not sporadic incidents but a ''structural impact on public service''.

The Council concludes that ''the termination of the water supply, sanitation, and wastewater reuse management contract'' for Lanzarote and La Graciosa ''is appropriate''. To prevent harm to the population, Canal Gestión will continue to manage the service until a new operator is appointed.

A prior technical-administrative report, issued by the managing director of the Lanzarote Water Consortium, Fernando Fernández, described the service disruption as ''serious, objective, continuous, and structural''. The report warned of risks to the basic water supply and recommended temporary intervention in the service.

The report detailed deficiencies across all stages of the integral water cycle, including the precarious state of production at Lanzarote's two desalination plants. The EDAM Janubio is operating at 66% capacity due to a breakdown, and the EDAM Díaz Rijo experiences ''a high rate of shutdown incidents'', resulting in at least 1,200 hours of production interruption last year, while consumption has increased by 40% over the past decade.

These generation issues are compounded by deficiencies in the distribution and treatment network. Weekly water cuts occur ''without notice, without information on duration, and without corrective measures'', making the service ''completely unpredictable''.

Meanwhile, Canal Gestión has also initiated legal proceedings to request contract termination, citing ''critical and systematic breaches by the island administration''. The company states that the Consortium failed to execute investments worth 78.7 million euros and diverted a 50 million euro advance payment to purposes unrelated to the service. Furthermore, it denounces the ''deliberate blockage of tariff updates'' since 2017, which has resulted in a deficit exceeding 40 million euros.