On April 16, 2020, by means of Resolution CRA 915 of 2020, the Commission for the Regulation of Water and Basic Sanitation established transitory regulatory measures for the deferred payment of invoices for domestic water and sewerage services and public sanitation services, within the framework of the emergency declared by the National Government due to COVID-19. Among the measures to be highlighted is that for subscribers and/or residential users of stratum 1 to 4, the value subject to deferred payment will be that of the final rate per subscriber and/or user associated to the provision of public aqueduct, sewage and/or sanitation services for the period invoiced. For subscribers and/or users of stratum 5 and 6, and subscribers and/or industrial, commercial and official users, who agree with the providers to defer payment, the value subject to deferred payment shall be that of the final rate per subscriber and/or user associated with the provision of public aqueduct, sewage and/or sanitation services for the period invoiced.

It is understood that the subscriber and/or residential user of stratum 1 to 4 automatically selects the deferred payment measure when they do not pay the bill by the deadline for payment foreseen by the provider. In addition, it should be noted that in case of failure to make the deferred payment, once the health emergency is over, the provider may restart the actions of suspension or cut-off of public service in the terms established in paragraph 1 of Article 5 of Resolution CRA 911 of 2020.

The provider must inform the subscriber and/or user through the invoice, its website or other means of effective diffusion, at least the following: (i) conditions for selection of the deferred payment option (ii) applicable financing rate (iii) date of commencement of payment (iv) payment period, and (v) options for advance payment of the deferred value.

As for financing rates, the providers of public aqueduct, sewerage and/or sanitation services will apply to subscribers and/or residential users of stratum 1 to 4 the lower value between: i) the rate of the credits that the provider acquires for this financing ii) the preferential rate plus two hundred basic points or iii) the direct credit line to domestic public service companies provided for in Legislative Decree 581 of 2020. For subscribers and/or users of stratum 5 and 6, and industrial, commercial and official subscribers and/or users, the lower value between: i) the rate of the credits that the lender acquires for this financing and ii) the average between the preferential rate and the current banking interest rate shall be applied.

Finally, the providers of public aqueduct, sewerage and/or sanitation shall offer the following payment periods: a. For subscribers and/or residential users of stratum 1 and 2, a payment period of thirty-six (36) months. b. For subscribers and/or residential users of strata 3 and 4, a payment period of twenty-four (24) months. c. For subscribers and/or residential users of strata 5 and 6, and industrial, commercial and official subscribers and/or users the term shall be the one agreed between the parties.

RESOLUTION 915 OF 2020