Tirme denies having "stratospheric profits" and defends the contributions of the Council
The concessionaire replies to the Intervention report that questions the rates and maintains that public money serves to reduce the cost of the service to the town councils
PalmaTirme rejects that it obtains "stratospheric profits" for the management of waste in Mallorca and maintains that the financial contributions from the Council serve to lower the cost of the service for the municipalities. The concessionaire responded this Wednesday to the report from the General Intervention of the island institution that questions the tariff system and warns of imbalances in the concession. The company maintains that the document's assessments do not reflect its economic reality and claims that it learned of its content through the media.
The response comes after months of controversy over the tariffs and the extraordinary contributions from the Council, which have exceeded 103 million euros since 2023. As published by ARA Balears, the Intervention report warns that the tariff increases may have exceeded the actual evolution of the service costs and questions the update with the CPI of the infrastructure amortization. The platform No to waste importation and MÉS per Mallorca denounced in August a "stratospheric" profitability and demanded a review of the concession.
A profitability of 6.08%, according to the company
Tirme argues that calculating profits solely in relation to equity offers an incomplete picture, because it leaves out the external financing necessary to execute the service's investments, which it estimates at more than 620 million euros.
According to the company, if both equity and financed resources are taken into account, the average profitability of the last six fiscal years is 6.08%. Tirme assures that this figure appears in the same Intervention report and that it places it in the tenth position among the 52 most representative companies in the sector in Spain. If the calculation is extended to the entire concession, which began in 1992, the company lowers the percentage to 2.95% and considers it moderate for a long-term public contract.
The defense of the tariff system
The concessionaire also rejects the objections to the annual tariff review mechanism. It explains that the procedure combines initial estimates with subsequent settlements based on actual data, which it claims are audited by the Council's technicians. The adjustments take into account variables such as tons treated, the CPI, the price of diesel, and the price of electricity.
One of the central points of the discrepancy is the application of the CPI to investment amortizations. Tirme defends that this mechanism is expressly provided for in the 1992 contract to preserve the value of the investment against inflation. It also maintains that it has been kept in the contractual modifications approved by the plenary in the years 2001, 2007, 2013, 2018, and 2023, and that it has the backing of four opinions from the Consultative Council.
Precisely, the island councillor for Finance, Llorenç Bosch, acknowledged in the September plenary session that the application of the CPI to certain amortizations was one of the main aspects questioned. Bosch stated that the Council shared the concern expressed by the Comptroller's Office, but defended that it was necessary to have new legal reports and an independent audit before modifying the terms of the concession, due to the possible legal consequences.
Public contributions to lower the cost of the service
Tirme denies receiving subsidies from the Council and distinguishes between a subsidy to the company and the contributions provided for in the contract to finance the service. According to its explanation, the institution assumes a part of the general tariff to reduce it by 10% and pays in full for the treatment of selectively collected organic matter so that it is free for the municipalities.
The company estimates this latter cost at 14.5 million euros per year, in accordance with the technical reports it cites. The Council pays this amount to Tirme, but the company maintains that the beneficiaries of the measure are the municipalities, which save having to cover the treatment.
To defend this interpretation, the statement refers to an Intervention report from February 2, 2026, prepared in response to the Audit Office. According to the fragment reproduced by Tirme, these contributions derive from the concession contracts and must be governed by contractual regulations, instead of subsidy regulations. The concessionaire ensures that, without these payments from the Council, it would charge the same amount, but would invoice it in full to the municipalities.
The PSIB demands halting the payments
The company's defense comes after the PSIB announced, on October 1st, a motion to suspend the processing of the 2026 tariff and halt the payment of the 41.4 million euros approved in July, until the actual costs of the service are reviewed.
The socialists also demand a review of the 50 million committed by the Government to finance the transfer and treatment of Ibiza's waste in Mallorca. According to the party's complaint, the Executive has already transferred 41 million to the Council without an economic report justifying the amount.
Tirme, for its part, defends the current management model and reiterates its willingness to collaborate with the institutions. The statement defends the environmental results of the concession, but does not announce any changes to the questioned tariff system.