Water utilities increased revenues - WRA encourages tariff unification, but not in all regional companies
Water supply and sewerage companies generated over 11.3 billion lek in revenue in 2024, or 983 million lek more than a year earlier. According to data from the Water Regulatory Authority, the sector managed to cover over 107% of operation and maintenance costs, showing a sustainable financial improvement compared to 2023. However, the situation is not the same for all companies, as only 5 out of 17 companies managed to cover over 100% of costs, while the other 12 companies continue to depend on government subsidies.
Meanwhile, despite the improvements, the sector faces major challenges, such as inherited debts, lack of qualified staff and inadequate financial documentation. Therefore, the Water Regulatory Authority encourages the unification of tariffs throughout the new service area. The Authority says that for some of the regional companies, tariffs are similar from area to area, therefore tariff unification is possible, but acknowledges that in some areas this process should be done gradually so as not to burden consumers.
Such cases are the Durrës or Korçë Regional Companies, where tariff unification presents difficulties due to large tariff differences inherited from previous companies.
"In these cases, the immediate application of the single tariff would lead to a significant increase in bills for some consumers, which could negatively affect the collection rate due to payment refusals. So instead of improving the financial situation of the company, it would worsen it. In this case, tariff unification should be implemented gradually by assessing the situation on a case-by-case basis", - assesses the WRA.
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