Spanish city councils approve water utility settlements to address losses and tariff disputes

The Ferrol City Council approved the 2025 annual accounts of the municipal water company Emafesa, reporting a loss of €628,000—significantly lower than previous years when losses reached €2‑3 million. The council highlighted that it now holds 93% of Emafesa’s capital after converting debt into equity, with a net asset value of €5.5 million and a positive cash balance of €5.1 million, and aims to achieve full public ownership by 2030.

The Santa Cruz de Tenerife City Council agreed to a €10 million payment to the mixed‑ownership water company Emmasa to settle claims over delayed water‑tariff updates between 2015 and 2023. The settlement, negotiated by Public Services councillor Carlos Tarife, will avoid further litigation and is expected to save the municipality about €2.3 million, while pending other court cases remain.

Both approvals aim to stabilise municipal water services, resolve financial disputes and improve fiscal health of the local utilities.