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Asen Lichev
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The model of the water supply and sewerage sector is wrong, says the Minister of Environment and Water
“The wrong model according to which the so-called water supply and sewerage sector is developing is absolutely wrong. The formula for determining the price of water, according to EWRC, is as follows – the price of water per cubic meter in BGN is equal to the company’s revenues for the year, divided by the difference between the water quantity entering the system inlet, minus the total losses. This is a formula that stimulates plumbing to have larger losses because they divide by a smaller number and the price becomes higher. A complete economic paradox “, said Minister Asen Lichev during the monthly report of the Ministry of Environment and Water.
“That is why I say most frankly that the most harmful thing for the water sector, for the water supply and sewerage service is the existence of the EWRC and the existing model of the water supply and sewerage sector. Especially when they “knocked” another intermediary – the State Water and Sewerage Holding. All financial flows are currently focused on it. For a year and more he has returned the obligations of the Water and Sewerage Company – Shumen and the fees for water abstraction of the water supply and sewerage, which were due to the EMEPA. Water abstraction fees, which are 2 cents per cubic meter, are included in the price of the water service, “he added. According to him, people pay, not VAT. “They also charge VAT on the fees and steal it. The increase of the water supply and sewerage fees is about 56 million a year, so 11 million are VAT, which is not reported, but is collected only from these fees, “said Asen Lichev.
“The state water policy in the water supply and sewerage sector is implemented by commercial companies, which is completely absurd. A law on the management of water supply and sewerage services must be passed immediately. The whole model is wrong. I hope that with the two Harvard graduates and with Mrs. Violeta Komitova we will be able to start some kind of normalcy, “he said.
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