Abstract
We aim to analyze tariff sustainability in the Buenos Aires water and sanitation concession amidst price instability. We use the 3Ts model (Tariff, Taxes and Transfers) to discuss tariff resetting from 2002 to 2019. We show that both level and tariff structure reflect the national administrations' preferences as regards service cost allocation among stakeholders. Despite the efforts, revenue has been below operative expenditure, which shows the company's difficulty to remain operationally sustainable and the differences between the ex-ante and ex-post burden of the three Ts. We suggest recommendations for the regulator to shield the sector against price instability.
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