site.btaRegulator: Water Sector Shows Positive Trends in 2023, but Water Quality Is Poorer

Regulator: Water Sector Shows Positive Trends in 2023, but Water Quality Is Poorer
Regulator: Water Sector Shows Positive Trends in 2023, but Water Quality Is Poorer
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The water sector reported improved efficiency in 2023 compared to 2022, including a reduction in water losses, an increase in the level of rehabilitation of the water network, an improvement in wastewater quality, and the recovery of sewage sludge, in addition to improved collection rates and staff efficiency.

Meanwhile, in 2023, negative trends were identified - a decrease in drinking water quality in large water supply areas, an increase in water supply network disruptions and a deterioration in the operation of water meters in buildings. These are the findings of the Energy and Water Regulatory Commission (EWRC) in its annual report on the water sector for 2023. The sectoral analyses are annual and are adopted by the regulator in compliance with the provisions of the Regulation of Water Supply and Sewerage Services Act and the Water Supply and Sewerage Services Quality Regulation Ordinance.

The report recommends that the focus should be on the management of public water and sewerage companies by the Ministry of Regional Development and Public Works and the Water Holding, as new European regulations introduce rigorous requirements that Bulgaria is not prepared to implement at the moment.

EWRC regulates the sector by approving business plans for the period 2022-2026, which includes monitoring the quality and pricing of water and sewerage services. Water utilities are divided into groups, which allows specific assessment of their activities according to their volume and characteristics. 

In 2023, the EWRC will carry out planned inspections of 38 water operators, assessing the implementation of business plans and compliance with regulatory requirements.

Challenges to the sector

One of the main challenges facing the water sector is the high proportion of water losses. Despite efforts to reduce them, they remain significant, especially in areas with outdated infrastructure. The water quality issue also requires attention as deviations from standards are still observed in some regions.

Another significant problem is the lack of coordination between water operators and local authorities, which leads to delays in the approval and implementation of investment projects. This is particularly important in the context of climate change, which requires better management of water resources.

Prospects for development

The report highlights a need for the sector to adapt to new challenges through infrastructure modernization, efficiency improvements and better resource management. Investments in digitalisation, such as the introduction of smart metering and automated network management, play an important role in this process.

One of the key objectives for the coming years is to achieve a higher level of energy independence through the deployment of renewable energy sources and more efficient use of available resources. This will not only reduce costs but also contribute to the sustainable development of the sector.

Financial results and investments

The financial indicators for 2023 show an increase in revenues in the sector, resulting from increased tariffs and growing consumption. At the same time, however, overall costs are increasing, with the main cost items being those for electricity, infrastructure maintenance and investment in new facilities.

Investment in the sector is key to the modernization of the water and sewerage infrastructure. In 2023, a significant part of the investments is directed towards the construction and renovation of water treatment plants, reduction of water losses and improvement of energy efficiency. The main source of funding is both own funds of water and sewerage operators and programmes financed by the European Union.

In 2023, significant investments have been made in the water and wastewater sector by various institutions. 

Data show that water operators have provided 37% of the total investment in public water assets in the water sector.

/PP/

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By 15:07 on 08.12.2024 Today`s news

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