Lanzarote advances in Canal Gestión contract termination

The Insular Water Consortium maintains its roadmap to resolve the service due to "serious breaches," despite the submitted allegations.

Symbolic image of a legal conflict over water management in Lanzarote.
IA

Symbolic image of a legal conflict over water management in Lanzarote.

The Insular Water Consortium of Lanzarote maintains its firm decision to terminate the integral water cycle management contract with Canal Gestión Lanzarote, a subsidiary of Canal de Isabel II, due to "serious breaches."

Despite the allegations presented by Canal Gestión Lanzarote last Friday the 15th, demanding contract resolution and financial compensation, the Insular Water Consortium, comprising the Cabildo and local councils, is proceeding with its strategy to regain control of the service. Island councilor Domingo Cejas stated that the "roadmap is firm" and is based on "serious breaches" by the company.
Among the deficiencies highlighted by the Consortium are frequent network losses exceeding 50% of production, regular supply cuts, and doubts regarding the execution of supposedly completed investments. Cejas asserts that "we are clear on how to resolve this problem, for the good of the islands of Lanzarote and La Graciosa."
The contract termination hinges on the opinion of the Canary Islands Consultative Council, expected in June, which will be crucial for formalizing Canal Gestión Lanzarote's exit. Concurrently, a decision from the Canary Islands Price Commission regarding water tariff revisions is also anticipated for the same month.
Canal Gestión Lanzarote, which took over the integral water management in 2013, filed allegations last Friday the 15th to refute the Consortium's arguments and demand the completion of pending investments. The company claims to have 40 million euros pending from tariff revisions and questions the use of 50 million euros in canon fees, which were loaned to the public company Inalsa.