The “Souss-Massa Distribution” Consortium of Water and Electricity on Track

The process of approving the partnership agreement for the creation of the Groupement des collectivités territoriales “Souss-Massa Distribution” has been set in motion by the region’s local authorities. The project was approved by the communal councils of the region’s six prefectures and provinces at a series of extraordinary sessions.

The aim is to pave the way for the future creation of the regional multiservice company, in accordance with law 83-21 on the creation of regional multiservice companies and the reform of the current management system for electricity, drinking water, and liquid sanitation services. As a reminder, this text was already put into practice on July 29, 2021, with the signing of a memorandum of understanding on the creation of these entities between the State (represented by three ministries, including the Ministry of the Interior) and ONEE.

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Acquisition of interests by 175 communes in Souss-Massa

Under article 83 of the Organic Law on Communes, communes are responsible for creating and managing communal public services and facilities. These include water and electricity distribution, as well as liquid and solid wastewater treatment.

In addition, the first article of law 83-21 considers communes and local authority groupings as managers of public services linked to water and electricity distribution, as well as liquid sanitation and public lighting.

In detail, the shareholdings of the 175 communes making up the Souss-Massa region will vary between 20,000 and 80,000 DH, in the form of annual contributions to be paid before April of each year (budget expenditure). It should be noted that these shareholdings are subject to revision by virtue of an amendment to the initial agreement, to be validated by the local councils and approved by the Ministry of the Interior.

Contracts between groups and companies in Souss-Massa

In detail, the “Souss-Massa Distribution” group of local authorities will be governed by a board, the number of which is to be determined by the Ministry of the Interior. The board will be headed by a president and four vice presidents, elected by the members of “Souss-Massa Distribution”. The services in question will be managed on a contractual basis by the regional multi-service companies.

They will replace the plurality of operators involved in the management of these communal public services. These include the régies autonomes, the délégataires privés, ONEE (historically responsible for the public service of electricity and water distribution in areas not served by delegated managers or régies), and certain associations.

It should also be noted that the PLF 2024, in particular the section on VAT reform, had proposed the gradual alignment of the VAT rate applicable to water, wastewater services, and water meter rental. It should be noted that this progressive alignment measure also concerns the VAT rate applicable to electrical energy and the rental of electricity meters.

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(Featured image by jarmoluk via Pixabay)

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First published in LES ECO.ma. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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