21.12.2009
IMPROVED REVENUE COLLECTION IS ESSENTIAL FOR BETTER WATER SERVICES SAYS WATER REGULATOR
If water companies are to deliver improved services to customers they must put more effort into collecting money owed by customers. But customers also have to play their part. They have to pay their water bills.
Afrim Lajci, Director of the Water and Waste Regulatory Office (WWRO) speaking in Pristina today said:
“Our job is to protect customers’ interests in an industry where they have no choice about who they buy their water from. We do this by ensuring that the water companies provide customers with an acceptable service at a fair price. During last summer’s drought many customers experienced unacceptable supply interruptions. There is still a need to conserve water.
“Part of the solution lies with the companies themselves. They must make a greater effort to improve their billing and collection procedures. However, far too many customers think they don’t have to pay their bills. This cannot continue. Customers have an obligation and duty to pay bills. WWRO will support companies in cutting off customers who do not pay.
“If companies and customers both play their part the industry could almost double its revenue. This will help the companies invest in a better and more efficient service.
Mr Lajci said the other priority was for the water companies to reduce the amount of their non revenue water. This includes reducing leakage and mending burst pipes quickly but also reducing the number of illegal connections.
Better leakage reduction programmer would help increase the amount of water available for customers as well as increase company revenues and provide sustainability of supply.
Poor performance in these two areas affects the companies’ financial viability and hence their ability to provide improved services to customers. Unless the companies address these two issues as a matter of priority they will not be capable of undertaking the much needed capital investment the industry needs”.
The Regulator said that his office had made considerable progress during the year in continuing to develop an effective regulatory system which would deliver benefits to customers in the longer term. He said:
“We are constantly looking for ways in which we can improve ways of regulating. At the same time we will be expecting the companies to find ways of improving their performance. Currently too little emphasis is placed on customers’ needs.
“We have introduced seven regional Customer Consultative Committees. It is early days and they are still finding their feet but they will play a vital role in listening to what customers have to say about the services they receive. And as we develop better processes for complaint handling they will be able to take up complaints on behalf of customers.
“Next year we want to place an increased priority on customer service. We will be making sure the companies are applying their Customer Charters. These Charters are a clear statement of the rights and obligations of the companies and their customers. They need to be taken seriously.”
Mr Lajci stressed that economic regulation was here to stay and referred to the new Draft Law which is expected to be passed by the new Kosovo Assembly early next year and which would provide legislative clarity for water regulation for the future. Support had been expressed by the former Minister of the Environment and Spatial Planning, Ardian Gjini who said that the new Law is needed in order to have positive and sustainable development in the water sector.
Spelling out some of his office’s achievements during the past year, Mr Lajci referred in particular to the Annual Report published by his office in June which set out how water and solid waste companies had performed in 2006.
This report shows how each company has performed, against a range of key performance indicators. These indicators include:
Publishing such information means customers can see how well or badly their supplier has performed during the year and how their service provider compares with other similar companies. In future years they will be able to see whether their supplier has got better or got worse.
“This year’s Report showed a very modest improvements in services overall. But we have a long way to go in achieving a sustainable water industry”, said Mr Lajci.
The regulator has also made considerable progress in developing a tariff setting process for the industry. His proposed approach requires the companies to produce forward looking business plans with a focus on capital investment, capital maintenance, system refurbishment and upgrading and to deliver reductions in their operating costs through increased efficiency. Last week a consultative workshop was held with all the water companies to discuss WWRO’s proposals.
Notes to Editors
1. WWRO is an independent economic regulator responsible for overseeing the activities of water and waste service providers. It was set up under UNMIK Regulation No. 2004/49.
Its primary purpose is to protect the interests of customers. It ensures that the regulated service providers do not abuse their monopoly positions and that they provide a reasonable standard of service at a fair price.
2. WWRO’s principle responsibilities are:
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