THE planned increase on water and electricity rates for cruise liners and shipping vessels in Palma de Mallorca’s port has received heavy criticism by unions and companies affected by the change.
Last month, the Board of Directors at the Balearic Islands’ Port Authority (AFB) announced that the rates would increase by 20% from January 1 of next year. In agreement with Palma City Council, the authority stated that the increase was in aim of achieving a more sustainable capital, where they had a duty to protect the port’s activities that put pressure on the island’s scarce resources.
However, the Employers’ Association of Maritime Activity Entrepreneurs (Apeam) and companies who operate in the port have criticised the increase which they consider to be excessive.
José María Jiménez, the Presendent of Apeam, questioned why the decision was made for the rates to increase in January as in previous years’ increases have been staggered. He added that the move will mean a significant rise in all production costs where we “have no choice but to accept the new price of electricity and water, despite the fact that it will make a huge impact on businesses.”
Shipping companies and cruise liners have also expressed their disappointment since the news was announced, stating that the rise will significantly affect their trading accounts.