Ivan Ivanov: It is necessary to introduce water subsidies for the population, not to cut the estimated costs of the water supply companies

Introducing water subsidies, rather than cutting the estimated costs of water companies so that they fit into social affordability, would be the better model. This opinion was expressed to the members of the National Assembly by the chairman of the Commission for Energy and Water Regulation (EWRC) during a hearing on the increase in the price of water by an average of 15% since the beginning of this year.

According to Ivan Ivanov, the introduction of water aid will also improve the rights of the population. The previous law on water companies provided for such a mechanism, but now it does not know of such a mechanism. Water subsidies should be guaranteed by law, but this has not been implemented for 18 years, he pointed out, adding that this would be the best way for both the water supply companies and the regulator. The chairman of EWRC also asked what the water and sanitation holding, created in 2020 because of the water crisis in Pernik and financed with BGN 1 billion, had done, stating that the minister of regional development and public works (the water and sanitation holding is a structure to the MRDPW). "Because in three years, they asked EWRC once for consultations, and that was at the time of its creation," pointed out Ivan Ivanov.

Previously, in response to a question about the quality of water in Sliven and populated areas of the region and what actions will be taken by the regulator appointed by MP Kliment Shopov, the chairman of EWRC stated that it was Sliven Waterworks for failure to fulfill its commitments that was sanctioned with a reduction of 21 %. If he had fulfilled them, the increase would not have been 44%, but only 9%.

"You transfer the responsibility of the waterworks operator to the regulator," Ivan Ivanov stated. He was adamant that if the company is state-owned, the policy is implemented by the minister. If it is municipal - from the municipal council, from the mayor. "We set a marginal price because water utilities are natural monopolies. We only say what the economically justified price is," reminded the chairman of the regulatory commission, reminding that it is cut precisely to social tolerability. The waterworks operator can also reduce the price, but will fall into financial bankruptcy.

At the beginning of the hearing, Ivanov stated that there are only two companies where the price of water exceeds social tolerance - in Vidin and Yambol, and in Razgrad it is close to the threshold.