Source: General Directory of water and sewerage systems (GDWSS)
Comments and analysis: ODA
The chart shows that prices for businesses are the highest of the three categories, almost 3 times as high as those for the individual consumers. This was the first category which experienced the highest increase in absolute terms, 8 leke/m3 in 2010.
The average price for individuals increased by 2.9 lekë/m3 in 2010 or 9.7% compared with 2009. In 2011 the prices went up another 3%. Presently the local units with the lowest prices are : Bulqiza (12.5l/m3); Orikumi (18 l/m3); Vau Dejës, Pukë Fshat and Fushë Arrëz (20 l/m3), whereas those with the highest prices are: Lushnje (60 l/m3); Pogradec (55 l/m3); Korcë,Shkodër, Divjakë and Mallakastër (50 l/m3). A difference of 4.8 times between the lowest and the highest price is primarily determined by the cost of acquiring the water and offering the services.
Were we to consider the production cost, sales cost and average price of water we would notice that the price is constantly below the calculated cost. The difference has slowly decreased after 2008, still in 2010 the average price is 35% less than the sales cost.
Source: General Directory of water and sewerage systems (GDWSS)
Comments and analysis: ODA
The production cost has increased year over year, and the sales cost has not fared much better until 2008, when it increased by 18% compared to the previous year. One of the main drivers has been the increased consumption of electricity, whose cost amounts to 30% of the overall service cost. Losses due to illegal use of water and the amortization of water pipe networks cause more water to be produced and sent to the network than is actually needed.
All the data is shown in the table below:
Source: General Directory of water and sewerage systems (GDWSS)
Comments and analysis: ODA