News

10 May 2023

Ombudsman Diana Kovacheva sent an opinion to the Energy and Water Regulatory Commission (KEVR), in which she categorically objected to the sharp increase in the price of the water supply service for 2023 by 81.25% in Kyustendil region. Compared to the current one of BGN 2.016 with VAT, it is planned to reach BGN 3.654 with VAT.

The representative of the Ombudsman at the meeting, Chief Expert Tsvetanka Ilieva from the Rights of Users of Administrative and Public Services Department, emphasized that the price for 2024 in the Municipality of Dupnitsa would increase by 163.10%, i.e. from BGN 1.392 with VAT to BGN 3.662 with VAT, without taking inflation into account. She also indicated that the Municipality of Dupnitsa wanted to leave the Association, but no unanimous decision was made on this.

“Considering that the price has not changed for 10 years, this sharp increase is unacceptable. Moreover, the price of Kyustendil Water Supply Company was formed without correction of performance indicators, as the company did not have an approved business plan for the period 2017-2021”, the Ombudsman reminds in her position, as well as that this increase will result in even higher rate of uncollectibility of receivables. Now the collection rate is about 77%, with 87.55% set for 2023.

The Ombudsman’s position also states that there are no municipal opinions attached to the business plan submitted to KEVR.

Attention is drawn to the fact that, in practice, the municipalities of Kyustendil, Dupnitsa and Bobov Dol have not given consent to the business plan, while they have 58.04% of the votes in the WSS Association, and 89.37% of the population of the WSS Association lives on the territory of the three municipalities.

“For” the business plan with the state’s blocking quota were 41.96% of the votes, i.e. the plan was not agreed with the Association, but KEVR assumed that it was accepted without objection”, the expert noted.

She noted that she expected the Commission to return to the working group the draft decision regarding the confirmation and approval of the prices in the business plan of Kyustendil Water Supply Company.

In her opinion the Ombudsman draws attention to another fact, i.e. the water supply operator did not present specific results of consultations with consumers and asks what the consumers’ opinions were and how they were reflected.

 “I consider it necessary to inform you that after an increase in the prices of water supply services, complaints and alerts with signed petitions are being sent to the Ombudsman. Citizens find out about the price increase only after the new bills arrive. Therefore, it is important to have consultations with consumers, so that they are informed in advance and can state their a position before submitting the business plan to KEVR in order for KEVR to take these results into account. At the moment, this is not being implemented and KEVR continues to neglect the problem,” said the expert.

She also pointed out that the business plan stated 46 villages on the territory of the region that were not served by the operator, and that in 2022 it was planned the water supply company to start serving the residents of 8 settlements. Therefore, the Ombudsman requests an explanation as to whether these 8 settlements are already served and whether the quantities for water supply are included, and if not – why and what follows from this. She also asked about the other settlements, when Kyustendil Water Supply Company would supply them with water and what the company's plans were, because there was no such information in the plan.

At the meeting, the Chief Expert drew attention to the fact that in 2021 the company ended up with a higher loss compared to 2020 – from BGN 155,000 to BGN 203,000. She emphasized that if it were not for the support from the state through grant funding, included in the revenues for 2021 (BGN 942,000, of which BGN 444,000 as compensation for electricity prices and BGN 498,000 for the 60/40 measure), the financial situation would have been even worse and the loss would be significantly higher.

She added that the number of staff members of this water supply operator was not determined in relation to the number of consumers served.

“Undoubtedly, it is necessary to increase the remuneration, but this must go hand in hand with the fulfillment of the goals set in the business plan. Unfortunately, an optimistic conclusion cannot be drawn on this point”, Kovacheva is categorical. The opinion also states that the plan envisages the implementation of only 15 of a total of 30 quality indicators by 2026, and that it is not clear what measures will be taken to improve the service in settlements with water supply rationing.

In her position to KEVR, the Ombudsman also asks when and how the compensations for electricity received from water supply operators for 2021 and 2022 will be taken into account in the prices approved by the Regulator, and also when and how the funds received from the budget will be accounted for.