Water utility services and infrastructure are crucial for environmental protection, the quality of citizens' lives, as well as the development of tourism and other economic activities in municipalities and cities in the Republic of Serbia.
An important prerequisite for achieving and sustaining their quality is the establishment of a system for regulating the prices and quality of water utility services. This would ensure that citizens and businesses pay transparently calculated fees for the services they actually receive, while also providing conditions for the organizational and technical development of utility companies with full cost recovery and the application of the principles of "customer pays" and "polluter pays".
Ensuring such a system in the Republic of Serbia and creating conditions for the establishment of an Agency for the Regulation of Prices of Water Utility Services is one of the main goals of the "EU Support to Reforms in Water Sector Services" project.
During the two-day workshop held on December 6th and 7th, more than 70 representatives from public utility companies, local governments, republic and provincial institutions, technical and other associations, as well as international institutions, discussed proposed solutions and measures for establishing a regulatory agency and a comprehensive reform of the water utility services system.
During the opening presentations, the participants were welcomed by Ms. Maja Grbić, Acting Director of the Republic Water Directorate of the Ministry of Agriculture, Forestry, and Water Management. Maja Grbić emphasized the significance of this project, not only for the development of useful documents but also for the analysis and identification of deficiencies and challenges that need to be overcome in establishing appropriate tariff policies and sector regulation.
Mr. Nicola Bertolini, Head of the Cooperation of the Delegation of the European Union to the Republic of Serbia, also addressed the participants. Nicola Bertolini highlighted the need for joint work of all interested parties in the reform, stating that it represents a long-term effort, and activities to improve the water services sector must continue in the future.
During the first day of the workshop, project activities and the most significant results in the previous period were presented, while the second day featured more detailed technical discussions on legal and financial-economic aspects of the reform. The expected impact of the new tariff methodology on the prices of water utility services and the financial performance of utility companies was presented, along with concrete recommendations for improving the legislative framework in this area.
The project " EU Support to Reforms in Water Sector Services" is funded by the European Union and implemented by the Department for Contracting and Financing of EU Funded Programmes of the Ministry of Finance. The end-user of the project is the Ministry of Agriculture, Forestry, and Water Management - Republic Water Directorate.
The project started in January 2022, with an expected duration of 26 months, as a continuation of the successful cooperation between the Government of the Republic of Serbia, the European Union, and other partners, aimed at improving environmental standards in Serbia and the quality of life of its citizens.
The expected results of the project and the upcoming reform in this area are intended to create conditions for full compliance with the requirements of the legal framework of the Republic of Serbia and the European Union, which is an important step towards full membership in the Union.