The Government of Icod de los Vinos (Alternativa Icodense-PSOE) has been compelled to increase the water tariff by 60% due to it being frozen for 13 years, resulting in a significant deficit for municipal finances, specifically €10 million in losses over the past five years.
This is highlighted in a report from the Treasury of the City Council dated 6 August 2025, which states that the economic reality of the country has changed considerably without reflecting such changes in the cost of this service in the municipality.
As a result, a couple currently paying €28 per month will have to pay €44.80 if the proposal to amend the current ordinance regarding the provision of drinking water service is approved. This will be discussed in an information commission next Tuesday and then at the ordinary plenary on 30 September.
However, the aforementioned report reveals other potential causes of the budget deficit, as well as troubling data regarding the management of the water service, operated by the municipal company Icodemsa. It notes that the growth of water meters has been very gradual, increasing from 11,717 in 2022 to 11,841 last year.
“The Treasury has requested and reiterated since 2018 that Icodemsa provide data on the meters that are missing from the register, but as of today, this information has not been submitted,” the document states. Additionally, it mentions that the Treasury has been aware of illegal meters for over 10 years, as some have come to the City Council to regularise their administrative situation due to property transmission, for example, only to find they have a network connection without being registered, which is not acceptable.
Moreover, there is a deficit in management. For instance, in the last year, income totalled €1,390,151, while the total service costs, both direct and indirect, amounted to €3,638,725, resulting in a deficit of -€2,248,573, confirming an unsustainable coverage.
According to the reported data, the economic losses since 2020 average more than two million euros annually. Over the past five years, they exceed €10,000,000 contributed by the City Council to cover the service costs.
The Treasury also advises reviewing losses through networks and facilities, with the immediate replacement of outdated infrastructure causing significant flow loss and inspection of deposits; reviewing personnel expenses and considering staff adjustments to reduce costs; addressing the issue of fraudulent residential and commercial properties consuming water without meters; and drafting a regulatory ordinance that includes new taxable items and any measures to reduce the current deficit.
If the budget imbalances are not corrected, taking into account the data from recent years, an increase between 120% and 150% may be necessary. To avoid such a steep rise, the governing body proposes a linear increase of 60%, a “legally secure” option, as covered by the Local Finances Act, and “financially prudent.”
Mayor Javier Sierra indicates that this amendment to the ordinance will also involve outsourcing the water service “as the public company Icodemsa, which has been managing the service for nearly three decades, has been unable to undertake all necessary investments, mitigate losses in the network, and ensure that the service is maintained under optimal conditions.”
“We have had to act responsibly”
The Mayor hopes that the citizens will understand this decision is motivated by the current situation, despite the potential political repercussions. “Increasing taxes is not favourable, but as mayor, I must ensure basic essential services for all residents, which in this case means being able to turn on the tap and receive water for a shower, flush the toilet, cook, or wash dishes. If raising the tariff accordingly and regularising the service will lead to an improved quality of life for residents, I will know I am acting responsibly,” declares Javier Sierra.
