TIRANA, Nov. 15 – Tirana households will face a 44 percent hike in tap water prices starting next January as part of a municipality project to increase investment in the dilapidated distribution grid and provide 24/7 water supply by 2022.
The water regulatory entity has decided tap water prices for Tirana households will increase to 65 lek (€0.48)/m3 starting January 2018, up from a current 45 lek (€0.33)/m3.
The fixed tariff for household consumers has also been doubled to 200 lek (€1.48) a month.
The water regulator ruled the price for business consumers will increase by about 15 percent to 155 lek (€1.14) m3, turning down a request by the municipality-run Tirana water company for 74 percent hike.
The municipal council had earlier decided pensioners and people in need will be excluded from the hike.
The Tirana water supply company has been consolidating its financial performance in the past few years reporting net profits of about €4.7 million for 2016, according to an unaudited report submitted with the country’s National Business Center.
However, an annual report by the water regulator shows about two thirds of water distributed by the Tirana water supply company is still wasted or unbilled due to losses in the dilapidated distribution grid, about a quarter of water not being metered and massive thefts.
Tirana residents have access to water about 11 hours a day, one of the highest rates nationwide, but yet making water tanks a must in order to have uninterrupted supply.
Tirana mayor Erion Veliaj said last July when the municipal council approved the price hike proposals that the higher prices were needed to obtain a €120 million loan that will enable investments making possible the uninterrupted water supply for about 1 million Tirana residents in the next five years.
However, opposition Democratic Party councilors at Tirana municipal council are skeptical the hike will improve the service.
“The 40 percent increase in water prices by the Municipality of Tirana is unjustified and all data indicates the hike serves a huge corruptive affair with the privatization of the Tirana water supply company,” said Akil Kraja, an opposition Democratic Party councilor at the Tirana municipal council.
Back in mid-2016, Tirana Mayor Veliaj said the municipality was considering the option of privatizing municipality-run enterprise to further improve water supply and sewerage services both for households and businesses, triggering opposition by experts.
Prime Minister Edi Rama has recently announced a nationwide campaign to curb water losses, giving household and business consumers a 90-day deadline until next February to self-correct before punishment begins for illegal grid connections and accumulated unpaid bills.
