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In 2023, the government gave subsidies of around 3 million euros to the water supply companies

2024-03-25 11:45:45Biznes SHKRUAR NGA REDAKSIA VOX

In 2023, the government gave subsidies of around 3 million euros to the water

Last year, the water supply and sewerage companies benefited 310 million ALL, or about 3 million euros, from the state budget in the form of subsidies.

The Ministry of Infrastructure and Energy reported that this fund was planned in this amount since the beginning of the year and was fully realized.

"The annual plan for subsidizing water and sewerage companies, in the amount of ALL 310,000,000, has been realized 100%, according to the criteria and methodology, approved in accordance with instruction no. 12, dated 26.09.2023 "For the approval of the methodology, for the criteria and procedures , for the distribution and use of state subsidies, for service providers in the water supply and sewerage sector". The agreed annual plan, for the special fund of 152,000 ALL, has been realized in the amount of 105,000 ALL, or 69%", MIE estimates.

Budgetary support for water utilities through subsidies is a practice that has been going on for years in conditions where these companies have recorded continuous losses as well as debts of hundreds of millions of lek accumulated to third party companies such as energy companies. In September of last year, regarding subsidies, the Ministry of Infrastructure and Energy approved a methodology listing the priority payments that should be made with this money.

"The priority for the use of the fund by regional companies or/and companies that have signed the agreement for the creation of the regional company is the liquidation of emergency liabilities that hinder the normal activity of the company" it was said in the methodology.

In point 4, it was clarified that the subsidy obtained according to point 1 of this methodology will be used by AKUM first for companies that have signed the agreement or created the regional company within the year 2023, according to VKM no. 302, dated 11.5.2022, to be subsidized in the amount of 30 million ALL each.

Secondly, the remaining part of the subsidy fund is used by AKUM to pay off the electricity obligations of the regional water supply-sewerage companies according to the following priorities: - Companies that have over 75% of production with mechanical lifting; - Companies that have create new energy obligations during 2023, due to high energy costs," the methodology states. The assessment of the needs for the given fund as well as the final amount given is calculated by the Agency based on the documentation defined in the legal framework.

The water and sewerage sector was last year in an intensive activity of aggregation aiming at the merger of water companies to create larger enterprises, a process that has progressed significantly and where there are very few enterprises that have finalized this, which includes Tirana, Vora and Chamois.

 


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