The Polish government has presented a groundbreaking project that could fundamentally change the way water and sewerage bills are calculated for millions of Poles. The new regulations, published on the Government Legislation Center’s website, propose revolutionary changes in the competencies of tariff-setting authorities.
Return of Decision-Making Power to Local Governments
The most significant change is the planned return of decision-making power to local governments. This is a radical departure from the current system, where Wody Polskie (Polish Waters) is the main regulator. This change is a response to the long-standing conflict between municipalities, water and sewage companies, and the current regulator, which often blocked applications for rate hikes despite rising operational costs.
Proposed Changes
According to the proposed regulations, water and sewage companies will submit tariff applications directly to local authorities – mayors, city presidents, or commune heads. The new tariffs will be able to operate for a maximum period of three years, ensuring greater stability and predictability of bills.
One of the most interesting aspects of the reform is the possibility of introducing progressive tariffs. This means that the amount of the bills will be dependent on the level of water consumption or the number of people in a household. This mechanism is designed to promote rational water resource management and fair cost sharing.
Safeguards Against Uncontrolled Rate Hikes
However, the project provides some safeguards against uncontrolled rate hikes. In the case of planned increases exceeding 15%, Wody Polskie will retain the right to intervene. This is a kind of „golden share” aimed at protecting consumers from excessive burdens.
Industry Reactions
The water industry is viewing the proposed changes with mixed feelings. Paweł Sikorski, president of the Polish Chamber of Water and Sewerage, expresses concerns about the potential negative impact of progressive tariffs on the financial situation of companies and possible price increases in certain consumption ranges.
Experts Warn of Regional Disparities
Experts are warning that the new system may lead to significant differences in bills between individual municipalities. Local governments will have more freedom to shape their pricing policies, taking into account local conditions and needs.
Impact on Households
The reform could have significant implications for households with high water consumption. The progressive system means that exceeding certain consumption thresholds will be associated with higher rates, which is intended to encourage water-saving behaviors.
Economists’ Perspective
Economists emphasize that the changes could contribute to more sustainable water resource management, but at the same time, they stress the need to protect the poorest households from excessive burdens.
Next Steps
The introduction of new regulations will require detailed consultations and may encounter resistance from various interest groups. The key will be to find a balance between the financial needs of water and sewage companies and the payment capabilities of consumers.
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