Water privatisation: Public good or private enterprise? By Nicoletta Dammone Sessa*
Water is one of the basic elements for life on earth, a vital resource that should be accessible to everyone. However, this is not always the case. Apart from Africa, many other countries face serious difficulties due to the lack of safe drinking water. In some of these countries, only between 50% and 25% of the population has access to this vital resource. In Italy, a country with an advanced economy, water has become a commodity embedded in the logic of the market, a situation that contrasts sharply with that of those who fight every day for the basic right to drink clean water.
An important chapter in this history was written in Italy during the referendum of 12 and 13 June 2011, when up to 26 million citizens voted for water not to be a source of profit. In a massive turnout, Italians asked for the repeal of paragraph 1 of Article 154 of Legislative Decree No. 152 of 3 April 2006 on environmental regulations, in the part relating to the remuneration of invested capital. This result clearly sanctioned the will of the people: water should no longer be treated as an opportunity for profit, but as a common and inalienable good.
At the global level, the UN has recognised water as a fundamental human right (Resolution 64/292 of 2010), stressing that everyone should have access to sufficient, safe and affordable drinking water.
However, it is almost official news that in Scordia, a small town in the province of Catania, the water company is preparing to hand over the management of the entire water network, including the wells, to the private company S.I.E. . The company will manage up to 7240 users scattered throughout the municipality. Obviously, the subsequent invoicing, starting from the registration of the roles for 2025, will no longer be issued by the municipality. The municipal administration communicates via the institutional FB page that it will be its duty to ensure a clear and transparent transition path, and yet there are numerous perplexities from citizens.
Given that there seems to be no room for entrepreneurial initiatives in the water sector, how was it possible to entrust management to private companies?
Mario Calleri, from Scordia and one of the founders of the Scordia Water Committee, told SudPress microphones: “The participation of the private sector in the management of a body formed exclusively by mayors is a betrayal of the result of the referendum on public water. They have become a kind of fifth column, favouring private interests over a universal and inescapable good such as water. In doing so, they have abdicated their duty to control and protect the direct interests of citizens. Private companies have taken advantage of the provisions of ARERA, which do not require them to invest in the network. The Italians, who voted to repeal paragraph 1 of Article 154 of Legislative Decree no. 152 of 3 April 2006 on environmental regulations, in the part concerning the “remuneration of invested capital” (the central theme of the referendum question), were in fact deceived by the subsequent amendment of the same article, which was reformulated as “financial charges of the operator”.
This most opportune choice by ARERA allows it to include in the tariff elements such as balance payments and arrears, generating particularly conspicuous revenues, not least the possibility of managing significant funds such as those of the PNRR, which amount to 80,857,678.35 euros (D.P.Reg. n. 521/GAB of 03/04/2024). In this particular case, on the initiative of the Province of Catania, the company Servizi Idrici Etnei (S.I.E.) was set up by notarial deed on 6 September 2004. Following the approval of the ATO Consortium, the tender procedures were launched to select a private minority partner for S.I.E.
For the sake of brevity, I will refrain from describing the appeals against this operation, all of which were rejected by the Regional Administrative Court. However, it is necessary to point out that on 6 December 2012, following a ruling by the Court of Appeal of Catania, which annulled a previous decision to wind up the company, S.I.E., together with Hidro Catania S.p.A., the holder of the minority shareholding with the right to carry out infrastructure services and works (aqueduct, sewerage and water treatment), was able to resume its ordinary activities. However, a recent decision by the Regional Administrative Court (TAR) upholding an appeal by ANCE Catania is still pending. In reality, so far no official act, resolution or protocol seems to have been issued by the municipal administration on this issue, but the history of this company inevitably raises concerns, especially with the news that it will take over the management of the water service.
Calleri says: “The transfer of the management of the Integrated Water Service from the municipality to S.I.E. raises serious concerns and risks frustrating the efforts and commitment of the Citizens’ Committee and the citizens. There is the prospect of a return to tariff conditions and consumption bands similar to the unfavourable ones in force before 2022. We therefore call for the implementation of the provisions of the ARERA resolution, which provides for the possibility of subdivision into territorial basins, allowing for the diversification of tariffs according to the area of application. Furthermore, it remains uncertain whether a physical office will be guaranteed for users who do not have access to digital services.”
This is not mere pessimism, but considerations based on a preliminary analysis of the tariffs and consumption bands adopted by S.I.E. in the areas it already manages. For example, the subsidised band would go from the current 138 litres per inhabitant/day to only 52 litres, a figure that stands in stark contrast to what is stated in point 3.5 of Annex A of ARERA Resolution 665/2017. The latter proposes a facilitated consumption of 150 litres per inhabitant per day. This reduction in the water consumption band would lead to a significant increase in the cost of the bill, as excess consumption would be easier to achieve, resulting in more expensive tariffs for users.
Rather than representing a step forward in the management of the water service, this change appears to be a clear step backwards. It does not encourage a more efficient use of water resources, but turns them into a tool for private profit’.
Mario Calleri’s statement on behalf of the Citizens’ Committee is an outburst, a call to protest. His aim is to promote the creation of citizens’ committees in each municipality to defend public water. Although water is considered a common good, an essential resource for life, water management remains a controversial issue, with many challenges linked precisely to the fair and clear distribution of water decisions.
*Nicoletta Dammone Sessa. Degree in Communication Sciences from the University of Catania. Freelance journalist since 2022.
