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Waterworks, KLSH: Subsidies were used for salaries and insurance

2025-02-21 10:00:00, Aktualitet CNA

Waterworks, KLSH: Subsidies were used for salaries and insurance

The Supreme State Audit Office (SSA) estimates that water supply and sewage companies remain in a difficult financial situation and the subsidies received from the government have gone, among other things, to salaries and social security of employees.

A report by the National Water Supply and Sewerage Agency (AKUK) details the types of subsidies that companies have received for several years in a row and where these funds have been directed.

"AKUK grants subsidies every year to Water Supply and Sewerage companies that are in financial and economic difficulties. It turns out that for 2020, 3 types of subsidies were given (for electricity, Covid and tax obligations) while for 2021 and 2023, the subsidy was given for electricity.

"It turns out that the financial situation of water utilities is not good as subsidies have been used to pay employee salaries, social security and taxes which are deferred liabilities. It is also found that water utilities have deferred electricity liabilities, further aggravating the situation with late payment interest for non-payment of liabilities on time," the report states.

But the auditors have found that despite the money that the companies have received from the state budget, through the Agency, the latter does not have any evidence or documentation on the actual use of the amounts allocated as subsidies to the Water Utilities. In 2023, according to official data, the water utilities generated 10.3 billion lek in revenue, while the subsidies were 310 million lek.

The difficult financial situation of water utilities has been deteriorating time and again, something that was the main reason for the aggregation reform launched two years ago. Most of the companies have now merged to create larger companies, with the exception of Tirana, Kamza and Vora.

The Water Regulatory Authority (WRA), following this reform, approved last year an upward revision of the water price for enterprises that have applied, taking into account the achievement of certain performance indicators by these enterprises for these approvals./ Monitor Magazine





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