The Union of Municipalities of Montenegro (ZOCG) has once again highlighted the pressing issues facing municipal water supply companies. These challenges pose a significant risk to the citizens’ water supply.

According to the ZOCG, out of 24 water supply companies owned by Montenegrin municipalities, 11 faced total losses exceeding six million euros in 2023. Preliminary reports for 2024 suggest that this trend persists. For instance, the ‘Water Supply and Sewerage’ of Podgorica recorded a net loss of over 1.2 million euros last year. The costs incurred from maintaining and modernizing water supply systems have risen considerably due to both local and global economic conditions and inflation. Current water prices, including those projected for 2026, are insufficient for covering company expenses, leading to debt accumulation and hindering essential infrastructure investments.

Given this situation, the institution asserts that reliable and high-quality water supply can only be achieved through a sustainable adjustment in water pricing. This should be paired with appropriate regulations to allow for subsidies, thereby mitigating adverse impacts on vulnerable segments of the population.

In an effort to avert further financial instability within water utilities, the Union of Municipalities formed a working group last year. This group proposed changes to the methodology for water pricing, considering the existing legal framework, alongside suggested amendments to the Law on Communal Services for a more thorough redefinition of this methodology. Unfortunately, the relevant Regulatory Agency rejected nearly all proposals, and progress on amending the Law on Communal Services has been persistently delayed over the past few years, as stated by ZOCG.

The ZOCG believes it is crucial to take decisive actions to address these challenges to safeguard the country’s water supply system and to improve the wastewater management system.

According to the latest statistics, public water supply service coverage stands at 87.42 percent. However, the sewage network coverage is alarmingly low, at just 49.70 percent. The population’s access to municipal wastewater treatment services is concerningly low, at only 36.26 percent, as noted in the ZOCG statement.

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