Water price with 100% operating costs/ WRA requires that the tariff also cover maintenance: Strengthening financial stability
The Water Regulatory Authority has approved the new 5-year business plan model and guidelines for all water supply and sewerage companies, a document that clearly states that water tariffs should cover 100% of operation and maintenance costs. The new methodology aims to strengthen the financial stability of the companies and increase transparency in the tariff setting process, while it is expected to bring tariff increases for a number of companies.
Meanwhile, the latest data from the Water Regulatory Authority shows that in 2024, utilities managed to cover 107% of operation and maintenance costs, a significant improvement compared to 2023.
However, only 5 out of 17 companies managed to cover over 100% of costs, while 12 other companies continue to depend on government subsidies to remain financially viable. The biggest problems are related to inherited debts, lack of qualified staff, and inaccurate financial documentation.
WRA underlines that improving the financial situation also requires unifying tariffs within each service area, a process that for some companies is feasible immediately, as existing tariffs are approximate. However, tariff increases cannot be applied equally everywhere.
Such examples are the regional companies of Durrës and Korça, where the inherited tariff differences are very high. In these cases, the WRA warns that an immediate single tariff would lead to a sharp increase in bills for a portion of consumers, risking also a decrease in the collection rate due to payment refusals.
For this reason, the regulator recommends that the unification of tariffs be carried out gradually, assessing the concrete situation of each company and the real impact on consumers.
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