ENERGO-PRO expresses its readiness to conclude the agreement proposed by the Shumen water utility for debt rescheduling

The electricity distribution company insists that the repayment plan be feasible and in line with the interests of both companies

At a meeting with journalists in the city of Shumen on Wednesday, September 11, 2013, the manager of ENERGO-PRO, Mr. Stefan Abadzhiev, once again reminded about the accumulated debt for consumed electricity of Shumen Plumbing and the problems that may arise from this still unsolved case. For their part, media representatives in the city commented that unfortunately the residents of Shumen and the district are reluctant to pay their bills for consumed water, as they are not satisfied with the quality they receive.

According to the manager of ENERGO-PRO, the problems of Shumen Plumbing are indeed serious and are not limited only to its obligations to the electricity distribution company. “Unfortunately, the difficulties experienced by the water supply company in the city of Shumen have been accumulating for years. It is currently in a vicious circle. Above all, there is a lack of the necessary funding to make investments in the water supply network in the area. People express doubts about the quality of the service, and this leads to their natural dissatisfaction, as a result of which the collection of obligations to the company decreases. The natural turnover of the financial flows of the water supply company is violated and it cannot provide the volumes of investments necessary to increase the quality”, comments Mr. Abadzhiev on the situation with Shumen Water Supply.

According to him, any manager faced with the challenge of leading a company in such a situation would see several natural ways out of this vicious circle.

One of the possible scenarios would be to make an adjustment in the price of water for the final customers of the Shumen Water Supply System. This measure could be taken by the State Commission for Energy and Water Regulation (DCEWR), in its capacity as an authorized state regulator, but in times of crisis, the price increase is hardly an acceptable option for all customers of the water supply company in the area.

As another option to deal with the unfavorable situation in which Shumen Plumbing is located, one can consider making large-scale investments in the water supply network, which would reduce the rate of water losses of the company — currently more than 70% — and would increase the quality of the service provided. Since it is obvious that the company is currently unable to allocate the necessary significant funds, it remains possible for the municipality and the state as the owner, together with the management, to seek a solution according to the circumstances in which the Shumen Water Supply System is located.

According to the information reported by the manager of Shumen Plumbing, Eng. Damyanov, the company is preparing an ambitious program to find reserve additional resources, through which the financial situation of the water supply company will stabilize. “We welcome the efforts of the management of Shumen Plumbing to find a solution to the problems it faces. This creates confidence in us that we have a partner against us who knows the complexity of the situation and is willing to take up the search for the best way out of it. We are convinced that the key to solving the problems of Shumen Water Supply System is not only in the hands of its management, but also of all people from Shumen and the region. Moreover, without the support and cooperation of both the municipal government and the state, as the principal of Shumen Water Supply System, it is very difficult to solve problems accumulated over the years, such as those with which the management of the company is struggling”, added Mr. Abadzhiev.

At the end of August, the management of Shumen Water Supply came up with a proposal to reschedule the accumulated debt for electricity in the amount of over BGN 1.2 million. “At the moment we do not have a final decision on whether to accept the offer of the water supply company. I believe that we can follow the approach of joint action and solidarity between the interested institutions, which was demonstrated in the city of Dobrich, and organize a broad public discussion of the problems of the Shumen water supply system. In this way, we will have sufficient confidence that an agreement on rescheduling will not only be strictly implemented, but also, if necessary, will be supported by both the public and the institutions, in the interest of all residents of Shumen and the region”, concluded the manager of ENERGO-PRO.