Water utilities, 91% of government subsidies went to energy debt

2024-08-30 07:24:00, Aktualitet CNA

Water utilities, 91% of government subsidies went to energy debt

Illustrative photo

The water and sewerage companies in the country managed to generate 10.3 billion lek of revenue in 2023 or more than 100 million euros but most of them still do not cover their operating costs.

In support of the companies where most of them have undergone the merger reform, the government distributed 310 million ALL or more than 3 million euros in the form of subsidies. The Performance Report of the Water Regulatory Body underlines that not many subsidies have been reduced by 50 million ALL or 500 thousand euros compared to a year ago. Subsidies are only available after meeting certain conditions.

"For this year, only six UK Regional companies have benefited from subsidies, respectively, Durrës, Elbasan, Fier, Lezhë, Shkodër, Vlorë. The new regional companies created and registered within the year 2023, regional UK Shkodër and Vlora have been subsidized with 30,000,000 ALL, the remaining part of the subsidy fund has been used to pay off electricity obligations for companies that have over 75% of production with mechanical lifting as well as those companies that have created new obligations for energy during 2023 due to high energy costs, a criterion which has been applied to subsidize the Regional companies UK Durrës, Elbasan, Fier and Lezhë.

This is also related to the strategy of the central government which has given priority with financial support to UK companies which have become part of the reform according to VKM no. 302 where MIE/AKUK is a shareholder with 51% of the shares," the report states.

Meanwhile, the companies that have not yet joined have not received funds from the central government, namely: UK Tirana, UK Vorë and UK Kamëz, which constitute 1 Regional UK company.

But where did the subsidy money go? According to the report, 90.8% of subsidies were distributed to cover electricity costs, 4.6% to unpaid social and health insurance, 4.5% to unpaid wages and 0.1% to unpaid taxes and duties.

ERRU's report also stops at companies that have a general increase in income. Out of 10.3 billion that was the total figure, there is an increase of 104 million compared to a year ago.

The UK Regional Companies that have the largest increase in income are UKR Durrës (+101 million ALL), due to the increase in the number of FU and KUN connections as well as the increase in the level of billing and the elimination of illegal connections through the task force ; UKR Lushnje (+48.5 million ALL), mainly due to the increase in the number of FU connections (+801 connections).

Other companies with higher revenues, compared to the previous year, are: UKR Pogradec (+43.1 million ALL), UKR Sarandë (+26 million ALL), UKR Lezhë (+22.3 million ALL), UKR Berat (+19.3 million ALL ), UKR Fier (+17.3 million ALL), UKR Vorë (+14.9 million ALL) and UKR Kamëz (+7.9 million ALL), UKR Dibër (4.7 million ALL) and UKR Shkodër (2.9 million ALL).

All other companies have decreased revenues compared to the previous year, starting from UK Tirana (-73 million ALL), UKR Vlorë (-69.7 million ALL), UKR Elbasan (-44.9 million ALL), UKR Korçë (-7.9 million ALL), UKR Kukës (-5 million ALL) and UKR Gjirokastër (-4.1 million ALL)./ Monitor