The Water Regulatory Authority of Albania Presents the Standard Business Plan Model – A New Step Toward Sustainability and Performance in the Water Sector

On 5 February in Tirana, the Water Regulatory Authority of Albania (ERRU) held a Coordination Meeting on the implementation of the Standard Business Plan Model in the water supply and sewerage sector. The initiative, led by ERRU in cooperation with the World Bank, SECO and the National Agency for Water Supply and Sewerage (AKUK), brought together institutional leaders, international partners, representatives of regional water utilities, as well as SHUKALB, with a focus on strengthening institutional cooperation and establishing a unified approach to sector planning and development.

At the center of discussions was the 5-year Business Plan, prepared by ERRU with the assistance of the World Bank, representing an important step toward sector modernization. The Standard Model aims to harmonize technical and financial planning, link investments to the actual financial capacity of utilities and to the tariff-setting process and establish a common structure for all regional companies. This approach addresses current sector challenges, including varying levels of performance, fragmented annual planning, and difficulties in implementing the tariff methodology.

The Model foresees a 5-year regulatory period, during which continuous “plan versus actual” monitoring will be applied, strengthening managerial accountability and regulatory analysis. It seeks to enhance financial sustainability through cost recovery and cash flow forecasting, prioritize essential investments, establish measurable performance indicators, and increase transparency and sector-wide comparability.

The Business Plan also serves as a key document for implementing the “Price Cap” tariff methodology, ensuring that tariff applications are based on realistic projections, clear objectives, and performance monitoring. Through this instrument, evidence-based decision-making for ERRU, AKUK, and other sector stakeholders is reinforced, while creating a more sustainable foundation for investment planning and improving service quality for citizens.

The progressive implementation of the Model, the improvement of data quality, and the strengthening of institutional capacities were highlighted as necessary next steps toward a more sustainable, transparent, and better-performing water sector.