site.btaSupreme Administrative Prosecuting Magistracy Contests Decision of Regulatory Commission about Prices of Water in Sofia

Supreme Administrative Prosecuting Magistracy Contests Decision of Regulatory Commission about
Prices of Water in Sofia

Sofia, April 11 (BTA) - The Supreme Administrative Prosecuting Magistracy has contested the decision of the Energy and Water Regulatory Commission (EWRC) to raise the price of water in Sofia by 18 per cent as of the start of April, arguing that it is not in conformity with the law and demanding its annulment.

According to the Water Supply and Sewerage Services Regulation Act, EWRC regulates the prices by means of a rate of return, determining a target rate of return taking into account the specific conditions in each water and sewerage utility, the social affordability of the price of water-supply and sewerage services, the requirements in respect of future capital outlays and the indicators for financial stability, the prosecuting magistracy says.

Instead of determining a rate of return by itself, EWRC directly adopts the figure of a 17 per cent rate of return of the own capital of Sofiyska Voda AD, indicated in the concession agreement for water-supply and sewerage services between the Sofia Municipality and the Sofiyska Voda utility.

Thus, an opposition of motives is present, as on the one hand there is a legal procedure and terms to determine the rate of return, and on the other, the procedure and terms are not complied with on the grounds that a provision exists in an agreement, which impedes the application of the law, the prosecuting magistracy says.