New ARERA Resolution (311/2019/R/idr)
The much-anticipated Resolution on the Regulation of Arrears in Integrated Water Services (REMSI) It has finally been published. The management of uncollected debts, in fact, has become problematic over the years and there has not been clarity until now on the correctness of procedures and the actions to be taken by managers.
This resolution outlines the correct procedures for the recovery of debts from defaulting users and the measures that can be implemented by the operator to reduce bad debts.
The concept of “suspension” and “limitation” of service is introduced:
- “Suspension” means a temporary interruption of supply without termination of contract and removal of the meter;
- For the purposes of this policy, “Limitation” means the reduction of the water flow supplied, ensuring the “essential quantity” of 50 litres per day per occupant, and applies to domestic resident households.
Two categories of NON-DISCONNECTABLE USERS are indicated, for which the operator is obliged to keep an up-to-date Register.
These two types of customers, even in cases of default or arrears, cannot be subject to the suspension or disconnection of their supply, and they are:
- Non-interruptible Public Utilities;
- Resident domestic direct (non-condominium) utilities that have obtained the “Water Bonus” (these utilities are however “limit-capable”, meaning the flow can be reduced, guaranteeing an essential quantity of water of 50 litres per day per occupant).
Other Resident Household Users, who do not benefit from the Water Bonus, in the event of continued arrears, may first be “restricted” (when technically possible), and then, after at least 25 days, may also be suspended.
The situation remains a bit more complex for apartment blocks, however. Arera has urged the relevant Government Authorities to provide clear instructions to managers to equip all currently ’indirect“ users, i.e. those deriving from a single apartment block meter, with individual meters and contracts for each internal user, where technically feasible. Furthermore, it has launched a permanent fact-finding survey to monitor the situation of apartment block users.
What should the administrator do if a User is in default:
- After at least 10 calendar days have passed from the invoice due date, must send a “Friendly Reminder, indicating:
- all information relating to the unpaid invoice;
- the final deadline by which, if the default persists, the administrator may initiate the formal notice of default procedure;
- the payment methods and the operator's contact details to whom to communicate the payment;
Furthermore, the manager will attach the postal payment slip for the unpaid invoice.
- "after at least 25 calendar days have passed from the invoice due date, if the friendly reminder has already been sent and at least 15 days have passed since it was sent, the [document/action] may be sent" “letter of formal notice” by certified email (PEC) or registered mail, stating:
- all information relating to the unpaid invoice;
- The reference to the amicable reminder, the deadline by which the user is required to settle outstanding previous payments;
- the date from which any limitation, suspension or deactivation of the supply may be implemented;
- the deadline for payment (which ranges from 20-25 days for Registered Mail to 15 days for Certified Email);
- the possibility of requesting instalment payments;
- the payment methods and the operator's contact details to whom to communicate the payment;
The Manager must also attach the pre-completed postal payment slip relating to the notice of default;
For resident domestic users, details of supply “limitation” methods must be provided, along with the methods for communicating the details of household members occupying the utility, and the procedures for arranging a potential appointment if the meter is located in a place not directly accessible by the manager.
You may claim the postage costs for the friendly reminder and/or the formal notice, as well as interest on arrears (ECB rate + 3.51% p.a.).
In addition to resident domestic users who do not qualify for the water bonus and users belonging to other categories, the costs for the limiter and its installation, suspension or deactivation, and the subsequent costs for restoration or reactivation of the service may also be requested.
- Once the deadlines for payment of the formal notice have passed, the operator may proceed to appropriate the amount of the Security Deposit, if paid by the user, which the operator may re-request, amortising it over subsequent invoices. In the event of a remaining debt, the operator may proceed to limit (for resident domestic customers) and/or suspend or disconnect the supply.
The customer may request to pay the bill in instalments if the amount of the bill exceeds 80% of the average charge for bills issued to the customer over the last 12 months.
The manager allows for the payment of the amount in instalments, over at least 12 months and with the same billing frequency, unless otherwise agreed between the parties and expressly requested in writing by the user.
If the invoice issued exceeds the average charge for bills issued over the last 12 months by 150%, payment slips for the instalment payment of the amount due must be attached to the invoice.
For communal utilities, the provider will not be able to limit, suspend, or disconnect the supply if the apartment block:
- They will have made a partial payment, but at least equal to half of the total amount due, within the payment deadlines specified in the default notices;
- Within 6 months of the formal notice, you must settle the amount due.
In the event of an error by the administrator in limiting, suspending, or deactivating an account that has made payment within the deadlines and has notified accordingly, automatic compensation is provided.
Some Further Notes:
- In previously published consultation documents, the Authority indicated “protection” against disconnection for users with “physical discomfort” within the household. In this resolution, this protection has been provisionally “overlooked” pending a more detailed definition of how to obtain information regarding the use of particular machinery or specific health conditions.;
- Non-Disconnectable Public Utilities are not disconnectable, nor even “limited,” “suspended,” or “deactivated.”
- Beneficiaries of the Water social bonus cannot be disconnected from supply, but their supply can be “limited” (50 litres/day/occupant).;
- Domestic user accounts are eligible for “limitation” and “suspension”, but are not eligible for “disconnection” (unless tampering with the system and seals is confirmed);
- The other categories of users are “suspendable” and “deactivable”.
All of these developments will also have a significant impact on the Regulations and the Charter of Services, therefore it will be necessary to work on updating these documents.
Furthermore, the procedures to be adopted are quite complex and precise, very detailed in the various cases for non-domestic users, resident and non-resident domestic users, and users who benefit from a water bonus.
The ARERA source is here https://www.arera.it/it/docs/19/311-19.htm
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