SHUKALB Supports the Water Regulatory Authority of Albania for the Dissemination and Building Capacity on the New Tariff Setting Methodology (TSM) for the Water Services Sector in Albania

During 6, 13, 27 May and 3 June, 2022, the Water Regulatory Authority (WRA) of Albania, in collaboration with SHUKALB organized 4 regional workshops on Presentation of the New Tariff Setting Methodology for Water and Wastewater Services.  The workshops were organized with the financial support of the World Bank through the Danube Water Program.

The workshops organized in Tirana, Korca and Lezhe were conducted by Ndriçim Shani, Chair of WRA and Elda Kruja, Head of Economic Sector and Tariffs, WRA, while on the last workshop organized in Vlora on 6 June 2022, the panel was joined also by Ana Ismailaja, Specialist in Economic-Financial Analysis and Nevila Saliu, Specialist in Asset and Investment Analysis, from WRA.

The participants of the workshops in Tirana, Korca and Lezha were greeted by the Executive Director of SHUKALB, Ms. Elisabeta Poçi.

The 1^st regional workshop was organized in Tirana at Hotel Tirana International, and it was attended by 38 participants from the Water Supply and Sewerage Companies from the central region of Albania such as: Tirana, Durres, Kamza, Peqin, Berat-Kuçova, Lushnja, Bulqiza, Vora, Ura-Vajgurore and Rrogozhina; as well as representatives from the National Water Supply-Sewerage and Waste Infrastructure Agency (AKUM), GIZ Albania, WRA and SHUKALB.

The 2^nd regional workshop was organized in Korça, at Hotel Park Plazza, and it was attended by 31 participants from the Water Supply and Sewerage Companies from the South-East region of Albania, to include Korça, Elbasan, Pogradec, Devoll, Kolonja, Cerrik, Gramsh, Pustec, Belsh, Maliq, as well as WRA and SHUKALB.

The 3^rd regional workshop was organized in Lezha, at Hotel Twin Tower, and it was attended by 25 participants from the Water Supply and Sewerage Companies, mainly from the North region of Albania, to include, Shkoder, Lezhe, Diber, Puke, Fushe-Arrez, Malesi e Madhe, Kurbin, Mirdite, Kavaje, as well as WRA and SHUKALB.

The 4^th and the last regional workshop was organized in Vlora, at Hotel Bologna, and it was attended by 32 participants from the Water Supply and Sewerage Companies, from the South-east region of Albania, to include, Vlorë, Fier, Sarandë, Gjirokastër, Patos, Tepelenë, Selenicë, Përmet, Dropull, Finiq, Konispol dhe Rroskovec,  as well as WRA, SHUKALB. And Faculty of Civil Engineering of Tirana.

During the workshops the participants were introduced to the Need for Methodology Review, the Purpose of the Methodology, Tariff Application Documentation, Tariff Approval Process Scheme, General Evaluation Criteria, Cost plus method, Ceiling Price Method, as well as the Application model. Participants had the opportunity to get acquainted in detail with the new TSM, the practical aspects of the preparation of documents that utilities should prepare for proposing the new tariffs, as well as received the necessary instructions on how to calculate the needs for revenue, tariff structure, affordability and key performance indicators.

During the presentation, Mr. Shani explained why it was necessary to review the previous methodology, as a request that came with the evolution of the sector. Being on the eve of a reform based on aggregation, which provides for utility companies to have a 5-year business plan to project the increase of financial sustainability, the necessity of designing a new method, “ceiling price” arose.

Mrs. Elda Kruja, presented in details the 3 year and 5 year Tariff Application Model and KPIs, the Annual report and the Evaluation of the KPIs.

During the workshops were organized question-and-answer sessions, where the participants were clarified about the details regarding the new Methodology, while WRA assured that it will continuously assist the utility companies for the new application scheme.[:]