3 May 2023
Ombudsman Diana Kovacheva categorically opposed an increase in the price of water in the Dobrich region in 2023. This became clear at today’s meeting of the Energy and Water Regulatory Commission (KEVR), held to discuss the business plan of the local water supply company for the period 2022 – 2026.
Prof. Kovacheva’s opinion was presented by Nina Boyadzhieva, head of the Rights of Users of Administrative and Public Services Department at the institution of the public defender.
“According to the draft decision, KEVR will increase by 24.45% the price of the Dobrich water supply system compared to the current one: from BGN 3.01 (with VAT) to BGN 3.75 (with VAT), and this on the condition that the integrated price of the water supply services for 2023 in the business plan of BGN 4.471 (with VAT) was reduced by KEVR by 16.22% due to the full non-execution of the 5 performance indicators for 2021, such as the quality of drinking water in large areas, the pressure in the water supply system, the rehabilitation of the water supply network, the collection, and the efficiency of construction of the water metering farm”, emphasized Boyadzhieva.
She drew attention to the fact that there was also non-fulfillment of investments in public fixed assets by 13.557%.
She pointed out that for 2021, out of 30 quality indicators, 18 were not met, including the level of coverage with water and sanitation services, the quality of drinking water in large and small areas, the continuity of water supply, the pressure in the water supply system, the rehabilitation of the water supply system network, the active leakage control.
“It is noteworthy that since 2018 the number of unfulfilled quality indicators has been increasing: 2018 – 15; 2019 – 16; 2020 – 14; 2021 – 18”, emphasized the representative of the Ombudsman.
Boyadzhieva added that on website of Dobrich Water Supply Company there were periodic reports of accidents in a number of settlements, while the business plan of the water supply company states that one of its goals is to take measures to improve the water supply in villages with a water supply regime, without making it clear what these measures cover.
She pointed to the fact that there was no data on consultations with consumers regarding this water supply operator either, which is in violation of Article 26, paragraph 1, item 1, point (b) of the Ordinance on the Regulation of the Quality of Water Supply and Sewerage Services.
“The “results” of consultations with consumers indicated by the water supply operator, which KEVR accepts, represent measures that will be taken to increase customer satisfaction,” Boyadzhieva pointed out.
She emphasized that there were no opinions of the municipalities attached to the business plan of the water supply operator, as required under Article 27, paragraph 2 of the Ordinance on the Regulation of the Quality of Water Supply and Sewerage Services. She drew attention to the fact that the business plan was submitted by the Dobrich Water Supply Company on 14 March 2023 with a technical and economic analysis for 2020, and pointed out that at the end of 2020 the company had a profit of BGN 120,000, but at the end of 2021 it had a loss of BGN 107,000.
The head of the Rights of Users of Administrative and Public Services Department at the Ombudsman’s institution also pointed out another fact: the number of personnel of this operator is not determined in relation to the number of users served, as is the legal requirement under Article 2, paragraph 1, item 15 of the Ordinance on the Regulation of the Quality of Water Supply and Sewerage Services and Article 9, paragraph 2, item 15 of the Water Services Regulation Act.
“As can be seen from the KEVR Report, the average electricity price is determined based on the data for the period January – June 2021. The business plan contains data on the average electricity prices on the energy exchange for the period July – December 2021. Our question is – is this a technical error, and if not – why is there a discrepancy in the base period between the Report and the business plan", asked Boyadzhievа.
She emphasized that from the financial statements of Dobrich Water Supply Company for 2021 it was established that compensations were received for electricity prices in the amount of BGN 3,319,000 for 2021, representing 34.35% of electricity costs for the whole of 2021, which were not taken into account when setting the average prices in the plan. She pointed out that this was precisely why the Ombudsman did not accept the electricity prices as economically justified.
“We are waiting for an answer why, when calculating the average price of electricity, the compensations received by the Dobrich Water Supply Company for 2021 are not included,” emphasized the representative of the Ombudsman.
Nina Boyadzhieva also drew attention to another problem – lower budgeted costs for investments – from BGN 11,449,000 to BGN 6,088,000, and that this was done against the background of the increased number of repairs compared to the previous regulatory period. She asked if a reduction of investments by about 47% would improve the quality of the water supply service in the Dobrich region.