The level of collection is one of the most important financial indicators for each activity. It provides information on the percentage of the value of invoices received within a certain period. The performance of this indicator has not been satisfactory over the years. The chart below shows the collection level of individuals, private companies and government institutions.The latter’s indicator is sometimes 100 %, which refer to arrears payments. This means that these institutions do not only pay the bills of the respective year, but even the debt accumulated to the General Directory of Water and Sewerage systems.

Source: General Directory of water and sewerage systems (GDWSS)
Comments and Analysis: Open Data Albania (ODA)

Most problematic issue appears to be the individuals and private companies’ payments. Small improvements are made in the invoices received from the individuals in 2006-2009, but mostly the trend shows regressions. In the 2010 the situation improves and the level of collection increased nearly 20% compared to 2009, however the level of collection of 84.3% is far from the target aimed of 98-100%.

According to the Water Regulatory Entity (WRE) Report 2010, only 13 out of 58 companies have the level of collection nearly 90%. The application of penalties and fines for the unpaid bills, is giving its reward but still these instruments are not enough.

Source: Water Regulatory Entity (WRE)
Comments and Analysis: Open Data Albania (ODA)

Figures show that in 2010, only 45% of individuals pay what they really consume. In the three years taken into consideration, the study proves that are made very small improvement in the level of the water measured vs. water billed. Only two years later the level of collected bill was 45%, comparing to the level of 40% in 2008.

The analysis of the level of these two indicators show that still the performance of the drinking water sector is not at the expected levels. The level of collections is round 84%, but here we have to keep in mind that only 30% of the water is produced within the country; showing the immediate necessity to improve the current performance of this sector by not only increasing the prices. Maximum efforts should be made to minimize theft and waste water, which mostly comes from the individuals / private companies not enrolled or that pay a flat rate and even by reducing losses due to depreciation of the water and sewerage systems.

All the information is shown in the graph below:

Source: General Directory of water and sewerage systems (GDWSS), Water Regulatory Entity (WRE)
Comments and Analysis: Open Data Albania (ODA)