News

6 March 2023

Ombudsman Diana Kovacheva sent a letter to the Acting Prime Minister and Minister of Labour and Social Policy Lazar Lazarov and the Acting Minister of Finance Rositsa Velkova, requesting information by region on the number of citizens who had received so-called "water assistance" for drinking and household needs in 2021 and 2022. The Ombudsman demands to know the amounts of social benefits paid in BGN for the specific period and how many persons had received such assistance, including the reason for granting it.

The reason for the Ombudsman's letter is the drastic increase in water prices throughout the country, as well as the frequent complaints to the institution from people who have difficulty paying their bills. At the same time, a decision of the Energy and Water Regulatory Commission (KEVR) of 28 February 2023 (p. 8) states that "according to § 1, paragraph 2 of the Additional Provisions of the Regulation of Water Supply and Sewerage Services Act (RWSSSA), the persons under Article 2, paragraph 3 of the Social Assistance Act (SAA) have the right to assistance in the amount of the monthly water minimum referred to in paragraph 1, item 4.“  These are people who, due to health, age, social and other reasons beyond their control, cannot through their work or based on the income earned from owned property or with the help of those obliged under Article 140 of the Family Code to support them, meet their basic life needs.

“Pursuant to Article 3, paragraph 1 of the Regulation of Water Supply and Sewerage Services Act, water for drinking and domestic needs is a basic vital need in the meaning of the Social Assistance Act. § 1, paragraph 2 of the Additional Provisions of the Regulation of Water Supply and Sewerage Services Act expressly lays down that the persons under Article 2, paragraph 3 of the Social Assistance Act have the right to assistance in an amount corresponding to the monthly water minimum set out in accordance with paragraph 1, item 4 (2.8 cubic meters per person)”, emphasizes the Ombudsman.

Diana Kovacheva adds that since mid-May this year KEVR has been approving business plans for the development of the activities of water supply operators for the regulatory period 2022-2026, as well as the new prices of water services. By a decision of the Regulator of 30 December 2022, effective from 1 January this year, new prices of water supply services have been approved for the majority of water operators, subject to certain social affordability, calculated on the basis of NSI database for the average monthly disposable cash income per person in a household by region.

“The analysis shows that the approved prices of water services without VAT, effective from 1 January 2023, have been increased by 39.05% compared to the approved prices for water services without VAT, effective from 1 January 2021 (KEVR Decision No. Ц-46 of 30 December 2020). At the same time, based on data from the two above-mentioned KEVR decisions of 1 January 2023, the social affordability has increased by only 21.20% compared to 1 January 2021”, the Ombudsman states.

 She draws attention to the fact that from the beginning of 2023 in Razgrad, Silistra and Varna regions, the price of water services is already over BGN 5.00 including VAT per cubic meter.

She also adds that in the 2022 - 2026 business plan of Shumen Water Supply Company for 2023, a complex price in the amount of BGN 5.24 cubic metres including VAT is envisaged to be approved, which is due to be examined by the Regulator.

Diana Kovacheva emphasizes that such procedures are also forthcoming for Pernik Water Supply Company, Dobrich Water Supply Company, Sofiyska Voda and other water operators. Thus, in practice, the prices of water services are constantly rising, while household incomes are not growing at the same pace.

“Household budgets in 2023 will additionally be burdened with new increased water costs,” Kovacheva is categorical and insists on support measures for the people.

 “In connection with the upcoming budget procedure for the adoption of the 2023 State Budget Act, I expect you to clarify what measures will be taken to allocate funds for social assistance in accordance with § 1, paragraph 2 of the Additional Provisions of the Regulation of Water Supply and Sewerage Services Act. It is imperative for the State to support socially weak citizens by guaranteeing them access to water, which is a basic vital need,” concludes the Ombudsman.