No items found.

ENERGO-PRO turns to the state in another attempt to save Dobrichly people from waterlessness

Posted on
21.8.2013
Author
ENERGO-PRO
Time to read
Blog article hero imageBlog article hero image

Urgent meeting with the Minister of Regional Development on the problems of indebtedness of the water supply system Dobrich is requested from the company

For almost a decade, the topic of indebtedness of water supply for electricity has been constantly on the agenda in the city of Dobrich. Although at certain times the debt of the water utility company decreased significantly, the local electricity company ENERGO-PRO is in the unenviable position of its largest and longest-standing creditor. With the new electricity prices from 1 August, ENERGO-PRO's ability to bear the financial burden of untimely payments from its customers has been reduced to zero. The company says that it will be forced to limit the growing debt of the Dobrich Plumbing and appeal for timely measures from the authorities - in the heat of summer Dobrich may end up with a non-working water supply system.

The Dobrich State Water System, which has not been “clean” in its electricity bills for many years, supplies water to the city of Dobrich and the area from wells, some of which are more than 90 km away. In Dobrudzha, water is expensive — every liter of it that reaches people's homes costs Dobrichly kilowatts of electricity. The loss of water by kilometers of pipelines, the high cost of the service and the economic crisis that has reduced livelihoods in Dobrudzha and people's incomes, return the danger of a dry regime again - in the heat of summer.

Almost a year after the electricity supply of “Water Supply and Sewerage” EOOD — Dobrich was suspended on September 13, 2012, due to a debt amounting to nearly BGN 5 million, VIK again tops the list of ENERGO-PRO debtors. To date, the liabilities of the water company are growing again and are already close to BGN 2 million, which also includes old obligations accumulated over months. The problem is so serious that the manager of ENERGO-PRO Varna Stefan Abadzhiev requested an urgent meeting with the mayor of the city, Mrs. Detelina Nikolova, on the evening of Sunday, August 19, and last week on the same occasion he talked with the Regional Governor Nedko Marchev and with the Deputy Mayor of the city Ivan Kolev on the same occasion Thu.

“I am extremely grateful to Mrs. Nikolova for the understanding with which she listened to me when I introduced her to another escalation of the debt of the Plumbing. I realize that it is very difficult for her, as mayor, to discuss with me and Mr. Ivanov, the manager of “Water Supply and Sewerage” — Dobrich, scenarios that threaten the citizens of Dobrich to run out of water. But if the obligations of the company are not paid within the time frame that we agree, this, unfortunately, can happen. I would especially like to emphasize - my working meeting with Mrs. Nikolova was really very positive, we discussed in depth the problem of the constant financial difficulties of the water supply system Dobrich, we were looking for options for a way out. We, ENERGO-PRO, see ourselves as partners of the city of Dobrich and want to help solve the problems facing the water company. Stopping the electricity supply to the water supply is the most extreme measure that we are trying not to reach, “said Mr. Abadzhiev.

During the joint meeting, Mr. Ivanov, Manager of “Water Supply and Sewerage” EOOD — Dobrich, informed the Mayor of the city Mrs. Nikolova about the current state of the company. The company is 100% state-owned and as such has a principal Ministry of Regional Development. During the meeting, it became clear that the main reason for the constantly growing debt of the plumbing company is rooted in the very outdated and depreciated water transmission network, along which nearly 80% of the transported water is lost. Another reason for the problem is the prices set by the State Energy and Water Regulator, which do not guarantee sufficient funds for the sustainable operation of the water company.

“The water of Dobrich travels from the wells to its customers over 90 kilometers! I learned from my conversations with the manager of the water supply system Dobrich and with members of the municipal administration that the state has not had the opportunity to invest in the water transmission network for years and the losses on it are huge - up to 80%. This is a situation that any reasonable person would rate as a crisis and which must be quickly, decisively changed! Every liter of water that is used in Dobrich is extracted with pumps, and therefore the consumption of electricity is enormous. It turns out that most of the electricity that Plumbing buys from us literally “sinks” into the ground, along with the leaks on the water network,” said the manager of ENERGO-PRO Varna. “I count on Mrs. Nikolova to support us in the dialogue with the leadership of the Ministry of Regional Development, to which we will turn to in order to jointly seek a way out of the situation,” added Mr. Stefan Abadzhiev.

The Municipality of Dobrich has found a future solution to the problem of the inefficiency of the city's water supply system within the framework of a project for overhaul of water pipes, which will decisively reduce the losses of drinking water and reduce a number of other costs of the water company. European funding for the project is expected within BGN 115 million under the Operational Programme “Environment”. Within the framework of the project, the complete replacement of 86 kilometers of main water pipes, reconstruction of a treatment plant, as a result of which it is expected that water losses will be halved, and also the energy consumption in the pumping and treatment plant of the city will be significantly reduced. This would significantly facilitate ENERGO-PRO's work with Dobrich Water Supply and make the company profitable in the future.

Earlier, the regional governor of Dobrich, Mr. Nedko Marchev, was informed about the debt problem of “Water Supply and Sewerage” EOOD — Dobrich, with whom a meeting was held on the subject and who actively assists ENERGO-PRO in its communication with the state administration on problems in Dobrichka region.

At the discretion of Mr. Marchev, the manager of “Water Supply and Sewerage” EOOD — Dobrich, Eng. Yuliyan Ivanov has developed a realistic program for investments and financial recovery of the company.

ENERGO-PRO is fully aware of the fact that “Water Supply and Sewerage” EOOD — Dobrich is a company that performs a main public function and therefore sends a letter to Minister Desislava Terzieva, requesting an urgent meeting with the participation of the mayor, the regional governor of Dobrich and the manager of the water supply company, to make quick decisions on real steps to repay the debt of nearly BGN 2 million.

“From the point of view of our company — ENERGO-PRO Sales — the situation is very precisely regulated in laws and regulations. We have a duty to protect the public interest and treat all our clients and debtors equally. With its latest decision, the State Commission for Energy and Water Regulation put us in an extremely tight financial framework - we literally do not have the monetary opportunity to take on a large debt of our client, such as the debt of Dobrich Plumbing. With the new prices, DKEVR has clearly shown us the size of our public role, set a limit to where it can extend — for example, for ENERGO-PRO, as a regulated company, it is impossible to lend to millions of its customers, even such as Dobrich Water Supply, who fulfill a public mission and, like us, serve the public interest”, noted the Manager of ENERGO-PRO Stefan Abadzhiev.

He pointed out that the accumulation of debt from Dobrich Plumbing is extremely worrying and increases the financial burden of ENERGO-PRO to the extent that the company may be forced to limit its losses by introducing limited power supply to the water company's facilities.

“The accumulation of debt from large customers threatens the ability of our company to pay off with its suppliers, on which the supply of electricity throughout North-East Bulgaria depends. We hope that the state, as the principal of Plumbing Dobrich, will understand, because if the company's debt is not controlled in the short term and its growth does not start to decrease, we will be forced to proceed to a phased shutdown of the water supply after Friday, August 23” - warned the Governor of ENERGO-PRA O.

“At the moment, all of us — the people of ENERGO-PRO, the management of the water utility Dobrich, the mayor of the city, the regional government and personally the Regional Governor are working to ensure that there is no disruption in the work of the Dobrich water supply system, but we cannot do without the assistance of the state, which owns the company,” he concluded.