The TSJC grants Canal Gestión the right to update the rates for 2020-2023

The Contentious-Administrative Chamber of the High Court of Justice of the Canary Islands (TSJC) has ruled that Canal Gestión Lanzarote, the company holding the concession for the integral water cycle on the island, has the right to have the rates updated for the service it provides for the years 2020 to 2023.

The ruling, to which EFE has had access, upholds the company's appeal against an order of March 11, 2024, from Court number 3 of Las Palmas de Gran Canaria, issued within an incident of execution of a previous ruling.

The Chamber agrees that "the necessary measures be adopted for the Lanzarote Water Consortium to update the rates corresponding to the already expired annuities (2020 to 2023, both inclusive)".

According to the contract signed between Canal Gestión Lanzarote and the Water Consortium, the company could annually increase water rates from the year 2017 using the CPI plus 1 percent formula. However, no increase has been applied.

Canal Gestión appealed to the courts due to the Consortium's refusal to raise rates between the years 2017 and 2019.

The courts recognized its right, but in the execution of the judgment, it was ordered that the Consortium follow the established procedure: that the increase be previously taken to the Canary Islands Price Commission "so that there was a liquid, expired, and enforceable amount". This Commission rejected the increase.

The company intended to extend the execution of the ruling to the review of rates for the years 2020 to 2023, considering that the scope of the judgment that recognized "an individualized legal situation in favor of the appellant" had been misinterpreted, such as its right to receive, as remuneration for the contract and from its fourth year of duration, the updated rates according to the formula 'CPI+1%', according to the ruling.

The ruling now protects Canal Gestión's right "to have the successive annuities already expired and claimed from the Administration also updated and paid, specifically the annuities 2020 to 2023, both inclusive, being contrary to the right to effective judicial protection to refer the enforcing party to a new judicial procedure to claim these annuities, when it has already been expressly recognized, by virtue of a final judicial decision".