The Government approved the draft of the new Water Supply and Sewerage Act. The regulatory act provides for the separation of the regulation of Water Supply and Sewerage services into an independent entity, within the Energy and Water Regulatory Commission as a single multi-sector regulatory body, through the functioning of an independent specialized composition “Water Supply” for the sector. The role of “Bulgarian Water Supply and Sewerage Holding” EAD is regulated. The roles and functions of the stakeholders are specified and prerequisites are created for consolidation in the management, maintenance and operation of Water Supply and Sewerage systems and the provision of Water Supply and Sewerage services.
The designated territories for the purposes of the Water Supply and Sewerage sector must coincide with
administrative districts, in accordance with the principle of management - one district, one Water Supply and Sewerage association, one Water Supply and Sewerage operator. The management of each of the separate territories will be carried out by a water supply and sewerage association, and the activities and provision of services will be assigned to a water supply and sewerage operator. When such consolidation is forthcoming, the relevant municipalities will be included in the water supply and sewerage association, and the municipal water supply and sewerage assets will be provided for management by the association. The decision to select a water supply and sewerage operator to manage, maintain and exploit the water supply and sewerage systems and to provide water supply and sewerage services on the territory of the relevant administrative area is taken by the general meeting of the association, in which all owners of public water supply and sewerage assets participate.
The draft law regulates the right of ownership over water supply and sewerage assets. It lists the objects of public and private state ownership, public and private municipal ownership and the private ownership of individuals and legal entities.
Among the principles set out in the regulatory document are accessibility, reliability, security, improving the quality of water supply and sewage services, a balance between the prices of water supply and sewage services and the purchasing power of the population.
The new draft law also regulates the methods of financing the water supply and sewage sector. In addition to the prices of services, it is envisaged that such an opportunity will be available from the state budget, municipal budgets, from a legal entity within the meaning of the Law on Public Enterprises with the sole owner of the capital being the state and represented by the Minister of Regional Development and Public Works, as well as with funds from the budget of the European Union.
The draft law creates a unified framework that encompasses and improves the overall regulatory framework regulating activities in the sector. The effectiveness of the legal framework of rules governing the ownership, management and operation of water supply and sewage systems, as well as the provision, regulation and control of water and sanitation services, is being increased. The draft regulatory act reflects the changes that have occurred in the sector and the regulatory framework in the period from 2020 to the present and is consistent with the requirements of the National Recovery and Resilience Plan.