Increase in water and sewerage tariffs could be discussed again in City Council

The increase in the tariffs for water and sewerage services could be reintroduced in the agenda of the Chisinau Municipal Council. Director of “Apa-Canal” JSC Constantin Becciev told the City Hall meeting on Monday, July 9 that the National Agency for Energy Regulation will present to CMC the calculation of a new tariff for water, updated according to the economic indexes. According to him, the company has also presented to CMC the information on the present financial situation of the company which, according to him, is deplorable. Taking into consideration the summer temperatures and the 50% higher volumes of water supplied to the consumers, Constantin Becciev says that the company does not have the satisfaction to increase the sales because the tariff is 3-fold lower than the real one. The monthly losses of the company because of the present tariff amount to MDL 12 mln. In the last six years, because of the inappropriate pricing policy imposed by the CMC, the company lost about MDL 600 mln, plus MDL 130 mln, generated by rigged water-metres. Becciev says that the company administrates at present a MDL 4 mln fixed funds. Even for a new company, the budget for the maintenance of the fixed funds at the company should amount to 10% or MDL 400 mln. At present the entire budget of ACC constitutes only MDL 250 mln, including for the payment of salaries, fuel, power etc, a sum which is very small for company’s necessities. Thus, the company has big debts to the suppliers of services, such as Union Fenosa, to the European Bank for Reconstruction and Development. These problems are not the only ones, as the company has difficulties in what concerns the technologic process, such as the insufficient number of operative teams, due to the impossibility of paying the salaries of the necessary personnel, impossibility of purchasing fuel, equipment, spare parts etc. Becciev said he is displeased with the fact that the real situation on leakages is being distorted. He mentioned that in the last six years, ACC has the never exceeded the norm of technological leakages, moreover – the annual volume was reduced to about 10 mln cubic metres: from 40 mln in 2001 to 30 mln in 2006, savings which amount to MDL 200 mln annually. As regards the problem of the losses and of the tariff for water, Mayor General Dorin Chirtoaca said that the local administration and the administration of ACC will inform the municipal councillors and will even lobby the interests of “Apa-Canal”. In this respect, he mentioned that the citizens are not very concerned at present about the inner situation of the company, being interested in having high-quality water, less leakages and accidents.