The Association of Water Utilities of Montenegro has responded to the article titled “67 percent of water lost, only 36 percent of wastewater treated: Regulator warns of chaos in municipal companies,” which appeared on the Vijesti portal.

The article discusses the Report on Regulated Utility Activities in 2024, submitted by the Regulatory Agency for Energy and Regulated Utility Activities (REGAGEN) to the State Parliament.

We present the complete response below:

“The water supply and sewage systems, along with the existing wastewater treatment facilities operated by municipal companies, are predominantly in a state of disrepair. The service pricing set by the Agency fails to generate adequate revenue necessary for proper and ongoing development, operational efficiency, or general functionality.”

It is evident that in many companies, due to aging infrastructure, lack of appropriate measuring and monitoring equipment, insufficient loss detection measures, and inadequately trained personnel, reliable and precise data are often inaccessible. Some of this data is partially gathered using modern technologies, while in other cases, it relies on approximations or estimates. This raises questions regarding the accuracy of the Agency’s report and whether it truly reflects the situation on the ground, particularly concerning water supply system losses in Montenegro (the discrepancy between the amount of water abstracted and invoiced). Notably, some companies use flow meters at the source to measure abstracted water, while others rely on estimates for this data.

Instead of the claim that “the regulator warns of chaos in municipal enterprises,” greater emphasis should be placed on how a report like this can be approved and whether there is any genuine evaluation of the Agency’s performance, particularly considering the substantial funds—several hundred thousand euros of Montenegrin citizens’ money—allocated annually for its operation.

Questions arise about whether regulation in the sector has fostered necessary improvements or whether the Agency’s operations, especially around price-setting which sometimes varies by over 300% year to year, are perpetuating a struggle for the survival and sustainability of these companies. This ultimately impacts the quality of life for citizens in Montenegro.

The current issues stem from an ineffective law governing the sector, inadequate investments in water supply, sewage, and treatment systems, irregular compliance with required professional development programs, and regulations that have unfortunately not produced the desired outcomes.

“As it has in the past, the Association of Water Utilities of Montenegro extends an invitation for cooperation and urges all stakeholders in the field, especially the relevant ministry, to finally establish and create a viable legal framework, thereby fostering a sustainable business environment that meets the needs of all Montenegrin citizens,” the response concludes.

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