New economic incentives for Water and Sewerage (W&S) operators
The Energy and Water Regulatory Commission (EWRC) is taking decisive steps towards the consolidation of the W&S sector in Bulgaria. Through a new regulation, the regulator aims to improve the quality of services and maintain socially affordable prices for consumers.
The consolidation process is a key commitment under the National Recovery and Resilience Plan, aimed at the modernization of the water sector.
What are the main advantages for the companies?
- Priority review: Business plans that include consolidation will be approved with priority and for a longer period.
- Deferred expenses: Expenses related to integration will be recognized and can be deferred for a period of up to 3 years.
- Investment incentives: The regulator will recognize planned investments for modernization, infrastructure construction, and common information systems.
- Financial flexibility: During the consolidation period, an efficiency improvement coefficient will not be applied, and a positive financial adjustment will be applied if planned investments are exceeded.
During the public discussion, the project received support from "Bulgarian Water and Sewerage Holding" EAD. The final decision is expected at a closed meeting of the EWRC on August 24.