The Commission for Energy and Water Regulation held an open meeting and public discussion on a report and a draft decision to amend the approved prices of plumbing services for 2025 The procedure is carried out in accordance with Art. 6, item 2 and Art. 29 of the Ordinance on the Regulation of the Prices of Water Supply and Sewerage Services /NRTSVKU/. In accordance with the transparency requirements of the institutions, the report and the draft decision were previously published on the Commission's website.
The current procedure is in accordance with the current legislation and regulations. The Commission ex officio changes the approved prices annually, adding the accumulated inflation for the period of validity of the approved business plan and correcting it with the legally regulated coefficients for the respective year. For 2024 in addition to the coefficients applied annually, which take into account the efficiency of water supply operators (coefficient E) and the costs incurred for new activities and objects (coefficient Qр), the Commission for the second time applies the coefficient Qe, which takes into account the actual electricity spent, from which they are deducted the compensation received from the state for electricity for 2023, taking into account the achieved levels of the relevant water loss and energy efficiency indicators. The purpose of this tool is to stimulate the implementation of these indicators and increase the efficiency of companies.
In 2024 The Commission carried out a regulatory review for 2023, including planned inspections of the activities of 38 water and sanitation operators with approved business plans for the regulatory period 2022-2026. The evaluation of the activity was carried out with the application of a uniform methodology. The report adopted by the Commission on the activities carried out in 2024 planned inspections is published on the Commission's website (www.dker.bg) in the section Waterworks/Information system.
According to the regulator's calculations in 2025 for 4 regional companies, a reduction in the prices of plumbing services is planned compared to the current prices for 2024. – in the regions of Dobrich (with -15.4%), Haskovo (with -6.2%), Kardzhali (with -1.2%), Lovech (with -0.9%). For 14 regional companies, an increase of up to 5% in the prices of plumbing services is foreseen. For 9 regional companies, the planned increase is between 5% and 10% compared to current prices, and for 1 company the increase is over 10% - in Sliven region (by 19.2%).
Regarding companies with more substantial price increases, the following can be stated:
„Water supply and sewerage – Jovkovtsi“ Ltd. has included in the business plan a reduction of the complex price for 2025. with -1.55% compared to the set price for the previous year. In 2024 the company reported 1 mln. BGN less electricity costs compared to the business plan, which are deducted and lead to an additional reduction. The accumulated inflation for the period is 12.8%, which is the main reason for the increase in the complex price. by 6.6% compared to the current one for 2024.
In the approved business plan of “Water supply and sewerage– Noisy“ Ltd. an increase in the complex price is foreseen for 2025. by 3.99% compared to the previous year. The waterworks operator reported 4.3 million in the past year. BGN more electricity costs compared to the business plan, but since he has not achieved the approved level of water losses, he is not compensated in full for this difference through the coefficient Qе, but the electricity costs that should be reimbursed to him through the price for this service were recalculated to 3.4 mln. BGN, taking into account the period of actual implementation of the approved business plan in 2023. (6 months). Accumulated inflation of 3.5% is an additional reason for an increase in the complex price by 9.1% compared to the current one for 2024.
In the approved business plan of “Water supply and sewerage“ Ltd., Pernik, an increase in the complex price is foreseen for 2025. by 6.3% compared to the previous year. In the past year, the water supply operator reported 450,000 BGN more electricity costs compared to the business plan, but since he did not achieve the approved level of water losses, he was not compensated for these additional costs through the Qe factor. Accumulated inflation of 3.5% is an additional reason for an increase in the complex price for 2025. with 9.3% compared to the current one for 2024.
In the approved business plan of “Water supply and sewerage - Sliven“ Ltd. an increase in the complex price is foreseen for 2025. by 9.6% compared to the previous year. In the past year, the waterworks operator reported with 3 mln. BGN more electricity costs for supplying water than set in the business plan, but since he did not achieve the approved level of energy efficiency, he was not compensated in full through the coefficient Qе, but the electricity costs that should be reimbursed to him through the price for this service were recalculated to 1.2 million BGN Accumulated inflation of 3.7% is an additional reason for an increase in the complex price by 19.2% compared to the current one for 2024.
To participate in the open meeting, the Commission invited representatives of all plumbing companies with approved business plans, and only plumbing & ndash; Yambol, Lukoil Neftokhim – Burgas AD, Waterworks – Smolyan, VK – Bratsigovo and VV – Dobrich and Waterworks - Haskovo and Sofiyska voda, as only Waterworks – Dobrich, in the person of Margarita Georgieva, expressed disagreement with the project and with the planned reduction, but emphasized the fact that this was included in the business plan, which was developed by the previous management.
Representatives of the principals of regional state companies did not participate in the public discussion – MRRB and “Bulgarian Waterworks Holding“ EAD, as well as the owners of the public water supply systems and facilities and contractors of the contracts for their management and operation – relevant water and sanitation associations. Representatives of the Ombudsman of the Republic of Bulgaria, of the National Trade Union “Water Supplier– KNSB“, of the District Administration and Water and Sewerage Association – Plovdiv, of the Municipality of Troyan, the mayor of the city of Bratsigovo, the mayor of the city of Shumen and representatives of the municipal council of the city, of the civil platform “Stand up.bg“, the deputy mayor of the Municipality of Razlog, as well as citizens from various cities.< /p>
Ivaylo Kaschiev - head of the working group, proposed that the Ombudsman should submit summary reports on the received complaints to the institutions that control the operators. Regarding the reliability of data on citizens' incomes, KEVR uses information from the National Statistical Institute, and if there is an opportunity to increase their reliability, it will benefit everyone. Kaschiev denied claims that the ".Qe" coefficient, which takes into account the actual costs of electricity compared to those laid down in the business plan and the implementation of the relevant quality indicators, was developed to pressure prices. Unfortunately, few operators manage to meet their quality indicators, and increasing losses and failure to meet set targets cannot be tolerated.
KEVR stimulates the water supply operators to submit to the regulator the real data on the extracted water at the entrance, so that the credibility of this information increases. In the initial version of the RAP, there was a project that provided for financing the installation of water meters at all drinking water sources, but this project fell out of the plan because no institution recognized it and did not want to lead this investment. In relation to the water crisis, Kaschiev said that the regional policy for the water and sanitation structure is led by the Minister of Regional Development, and that of the municipal infrastructure is led by the respective municipalities, and it is not within the competence of KEVR to either lead the construction of water infrastructure or to control how water operators manage public assets – this should be done daily by the infrastructure owners. The contracts concluded between the associations and the water supply operators can be terminated, and if any association considers that there is a substantial and permanent non-fulfilment of them, it should fulfill its powers and start a procedure for their termination. In response to the question of whether users can be compensated for the deterioration of the quality of the service, it was pointed out that in all KEVR's opinions on the Law on Water and Sewerage it is proposed to lay down a specific provision that the water and sewerage operators are obliged to reduce the price in cases where it is established that the offered water does not meet the requirements for its quality, which, however, has not been realized. KEVR will make such a proposal again in the next version of the law on water supply, but users should know that at any moment they can challenge the accrued obligations for this period in court. KEVR has been appealing for many years to introduce water support for the incomes of vulnerable consumers, as has been introduced in all countries in Europe.
In conclusion, KEVR chairman Ivan Ivanov emphasized that the Commission only sets marginal prices for water supply services. Water and sewerage associations and relevant operators may, at their own discretion and according to objective criteria, reduce these prices, which are subsequently introduced by order of the Regional Governor.
Within a 14-day period, participants in the public discussion can submit written opinions on the draft decision to amend the prices of water and sanitation services for 2025 approved with the business plans. The regulator will take a final decision at a closed meeting on 12/19/2024. The open meeting and the public discussion were broadcast online on the KEVR website.