Law on setting of water service prices
translation of adopted Law
I.
GENERAL PROVISIONS
Article 1
Subject of Regulation
This law shall regulate the objectives of water service policy on water supply for supply of raw water
intended for water supply, of the population,water supply, collection and treatment of waste
water(further on in this documents: water services) establishment of functional system for
establishing the price of water services; the manner, the conditions and the procedure for
establishing prices charged for water services; structure of water service tariffs; as well as the and
the competencies of the Regulatory Commission for energy in terms of determining the rates of
water services
Article 2
Objectives of the Law
1) The general objective of this law is to ensure the establishment of financially self-sustainable
water services system, which shall provide for high standard of services provided with an affordable
price in concordance with the objectives of the National Strategy on Water of the Republic of
Macedonia and the river basin management plans.
2) The specific objectives of this law are:
- To ensure a total price of the water services to be affordable for an average household,
taking into account total income per household in the specific service area;
- to ensure sustainable use of infrastructure for provision of water services, with the final
objective of achieving full cost recovery;
- to improve the water services quality in order to ensure continuous service provision in
agreement with the best accessible practices;
- to ensure gradual and as a ultimate goal a full application of the “polluter pays” , user
pays and the principle of costs of resource in accordance with the Law on Water;
- to improve efficiency of water services, with the ultimate aim to ensure highest quality
water services at the lowest cost.
Article 3
Definitions
The specific terms used in this law shall have the following meaning:
1. “1 p.e. (population equivalent)” shall mean an organic biodegradable load of waste
water which has five day biochemical oxygen demand (BOD5) of 60 gr oxygen per
day,
2. "Affordability threshold" shall mean the upper limit expressed in percentages of
financial affordability of water services calculated on level of Macedonia in which
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3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
the price of water services is not higher than a specific percentage of the average
total income per household in the specific service area,
"Auxiliary services" shall mean activities for direct support of core services and
include connection to the water supply or the sewerage system, water meter
maintenance, emptying septic tanks and similar activities,
“Bulk water supply” intended for water supply of the population, shall mean
abstraction, extraction, storage, protection of the source, treatment and distribution
of the surface and ground water, with or without processing and its distribution to
the water supply system, which is providing water supply to the population.
"Capital Maintenance Calculation" shall mean the percentage or part of the
depreciation percentage which is considered to be acceptable for establishing the
water service tariff for each individual water service provider,
"Communal household consumption " shall mean the consumption of services
which occurs within a multiple occupancy building (residential, residential and
business or business objects ), at which the use of the water services is not
considered to be individual household consumer consumption,
"Depreciation" shall mean the regular annual reduction in the estimated value of an
asset in accordance with the rates and procedures specified in the Law,
“Drinking water supply or water supply” shall mean abstraction, extraction,
catchment, treatment and/or distribution of surface and ground water and/or
protection of the source, reprocessing and distribution of water through the water
supply system to the main water meter of the water service consumer,
“Individual Household Consumer consumption” shall mean the services consumed
by the individual household without consideration of communal use in the case that
the household residence is located within a multiple occupancy building such as an
residential or business and residential building,
„Support Services„ shall mean services which are not directly connected to the core
services but contribute for provision of water services (accounting, administration,
consumer relations, legal services, human resources etc.) which costs shall be
calculated in the water services tariffs in accordance with their relevant participation
in the costs for provision of water services,
„Other Services„ shall mean services provided by the water services provider, and
which are not related in any way to the provision of water services (street cleaning,
maintenance of parks and other services), because of which the cost for their
provision shall not be part of the water services tariff,
"Norm of personal consumption of water services" shall mean a set amount of
water consumed by one person for a specific period based on the total water
quantity consumed by individual households in the service area for the same period
of time divided by the total number inhabitants on that area,
“Price of water service” shall mean the total level of payment that is required by
the provider of water service for payment the end water service users and includes
the payments arising from the water service tariff of the water service provider, the
charges related to the use of water prescribed by the Law on Waters or by another
law, as well as the taxes prescribed by law.
“End water service user” shall mean a legal or natural entity which might be an
institutional consumer, commercial and industrial consumer or individual
household, as well as the utilities connected to the regional water supplying systems
operated by water management organizations..
“Individual household” shall mean a natural entity using water services for personal
or household needs,
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16. “Commercial and Industrial consumer” shall mean any legal entity that
independently and permanently, in the form of business, performs commercial
activity so as to generate profit by production, trade and provision of services on the
market, is registered to perform commercial and other activities and is connected
to use the water services.
17. "Institutional Consumer" shall mean a legal entity, body of the state and local
authority and other state bodies incorporated pursuant to the Constitution and/or
the law and institutions performing activities in the field of education, science,
health, culture, labour, social protection and child protection, sports, as well as
other activities of public interest prescribed by law and organised as agencies, funds,
public institutions and public enterprises founded by the government of Republic of
Macedonia or the municipalities, by the City of Skopje, as well as by the
municipalities of the City of Skopje with a water service connection,
18. “Regulatory Tariff” shall mean a tariff that is a mandatory to apply for water
services with a fixed value determined in accordance with Article 13 (23) Articles 15
and 16 of this law by the Energy Regulatory Commission to be obligatory applied by
the water service provider,
19. "Tariff Adjustment Plan” shall mean a plan prepared in accordance with the
Methodology setting the water service tariffs of the water service which serves as a
basis for setting tariffs for water services for a a separate water service provider,
20. "Water Service Tariff” shall mean the monetary value of the service requested by
the water service provider from the end users of water services as part of the price for
provided services including the water services and supporting services, and excluding the
auxiliary services, other services, charges and taxes, which is formed pursuant to the
Methodology setting the water service prices, and is duly approved by the Regulatory
Commission on Energy.
21. "Regulatory Commission Energy" mean legal entity established in accordance with
the Law on Energy,
22. "Urban wastewater drainage” shall mean collection of wastewater from residential,
business, residential-business and other facilities existing on the territory on which
the water service is being provided, from the backyard network connection,
drainage into street primary and secondary sewage system and/or into wastewater
treatment plants and/or drainage in the recipient.
23. "Water service provider” shall mean a legal entity founded or designated by a body
of the state or local authority so as to secure one or more water services on the
territory of one or more municipalities, the municipalities in the City of Skopje or in
the City of Skopje,
24. "Water services" or core services shall mean services provided by the water service
provider as core services to its end consumers which include the following: bulk
water supply or drinking water and collection and drainage of urban wastewater,
and/or wastewater treatment,
25. “Structure of the water service tariff” shall mean a calculation model containing a
combination of one or more elements used so as to determine the manner and
amount for calculation of income being charged through the water service tariff by
the end water service consumer,
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26. "Wastewater treatment" shall mean the treatment of urban wastewater by
physical, biological or chemical processes in order to substantially reduce the
pollution content of the wastewater and thereby allow for its discharge into the
environment, and
27. “Area in which the water service is being provided”, shall mean the territory of one
municipality, its part or a territory of two or more municipalities, or the City of
Skopje on which the water service provider is providing water services to the end
consumer.
Article 4
Principles
The principles that shall be applied in the implementation of this Law include:
1. The user pays principle means that the consumer of water services shall pay for the
services of water provision and that the level of payment for the received water
service shall increase with the level of used water;
2. The polluter pays principle means that the creator of polluted wastewater shall pay
for the service of that wastewater being collected and treated, and shall pay for the
resulting pollution of water,
3. The cost recovery principle, means that the tariffs charged for the water services
shall be such as to allow the water service provider to deliver the water services in a
financially sustainable manner indefinitely,
4. The equity principle means that the price paid for water services shall, over time, be
harmonised such that irrespective of the category of the water service end
consumer, the same tariff and quality are applicable, and
5. The efficiency principle means that the provider of water services shall provide the
high quality services with least expenses for the water service consumers.
II. TARIFFS FOR WATER SERVICES
Article 5
Methodology Setting the Tariffs for Water Service
(1) For its water service provision, the provider of the water service shall be entitled to charge
the end provided water service consumer with a water service price.
(2) The water service price shall depend on the level of the water service tariff, the level of
charges related to the water use, prescribed by the Law on Waters or another law, as well as the
taxes prescribed by law.
(3) The level of the water service tariff shall depend on the expenses incurred with the water
service provider for the respective water service provision, including the supporting services
expenses, which is calculated pursuant to the Methodology for setting the tariffs for water service
provision.
(4) Calculation of the tariff for water service includes costs made for water service and costs of
supporting service which are based on
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operating expenses and maintenance expenses,
capital investment expenses and
Fees, taxes and other fees prescribed by law.
(5) The types of expenses being included in the water service tariff referred to in paragraph (4)
of this Article are determined in the Tariff Adjustment Plan
(6) The types and manner for calculation of tariffs for the water services, the structure of tariffs
for each water service, the types of expenses that are taken into account for calculation of the water
service tariff and required incomes for covering those expenses and as well their characteristics
and the manner in which the same are presented, are defined with the Methodology setting the
tariffs for water services adopted by the Regulatory Commission for energy (hereinafter ; Regulatory
Commission)
(7) The Methodology setting the tariffs for water services referred to in paragraph (6) of this
Article (hereinafter referred to as: Tariff Methodology) defines the manner of calculation and the
structure of the price for water services to be paid by the end consumer.
(8) The Tariff Methodology shall also define the content, format and manner of preparation of
the Tariffs Adjustment Plan for water services, as well as of the Regulatory Tariff for water services,
and the obligatory data and reports to be submitted in the Business Plan of the water service
provider.
(9) The Tariff Methodology shall also define the list of main success indicators, the list of
objectives/targets to be met by the water service provider in reference with the water service
provision, list of benchmarks in regards with water service provision and as well as the manner,
procedure and forms of the notification reports to the Regulatory Commission, from the service
providers on realisation of the objectives and benchmarks regarding the water service provision.
10) Methodology regulates as well other matters of importance for achieving objectives of
Article 2 of this law, related to the implementation of tariffs and pricing of water services and
operations of the water service providers.
Article 6
Charging of the Tariffs for Water Service Provision
(1) The water service provider (hereinafter referred to as: the provider) shall be obliged to
charge the end water service consumers with the price according to the tariff for the water service,
the level of which is calculated pursuant to the Tariff Methodology and is approved by the
Regulatory Commission and established in the decision setting the water service tariffs, and the
regulatory tariff decision.
(2) Water service provider cannot charge with a water service tariff which is not approved by the
Regulatory Commission and it is not determined in the decision determining the water service
tariffs, i.e regulatory tariff decision
(3) The provider shall submit the receipt for payment of the water service to the end consumer,
who is a legal person, only electronically on its electronic address and only with request by the end
user who is a natural person receipt may be delivered to its electronic address.
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III. REGULATORY COMMISSION
Article 7
The procedure for determining the tariffs for water services is regulated by the Energy Regulatory
Commission of the Republic of Macedonia.
Article 8
(1) The work of the Regulatory Commission shall be financed from financing secured from the
payment of:
1.Special annual charge paid by the providers defined as percentage of the annual income of
the providers obtained from providing water services, and
2. Charges in the procedure setting the water service tariffs, i.e. establishing of regulatory
tariffs for water services
(2) The percentage of the annual revenue collection from providers of paragraph (1) item 1 of this
Article shall be dfined with a decision by theAssembly of the Republic of Macedonia, where the
percentage can not be higher than 0.1%.
(3) The provider is obliged to pay the charge referred to in paragraph (2) of this Article on the
account of the Regulatory Commission in two equal parts, where the first one shall be by 30th April
of the current year on the basis of the income generated in the last six months of the previous year,
whereas the second shall be by 30th September of the current year, at the latest, based on the
income generated in the first six months of the current year.
(4) The charge in the procedure for setting the water service tariffs shall be determined for each
individual provider, on the basis of the type of services for which a tariff is required to be set, and
which cannot be less than 5000 denars, or more than 50.000 denars, or less than 60.000 denars and
not more than 300.000 denars in the cases from Article 17 of this Law.
(5) The Regulatory Commission shall, with a decision, determine the level of the charge in the
procedure setting the water service tariffs
Article 9
Jurisdiction of the Regulatory Commission
1) In order to enforce and oversee this Law, the Regulatory Commission shall have the following
competences and responsibilities:
1. to oversee and regulate the setting and application of water service tariffs,
2. to determine and to carry out a procedure for approving the water service tariffs,
3. prescribing a procedure for setting out and enforcing the regulatory Tariff and
follows its implementation
4. monitor the manner of calculation and application of the water service prices and
monitors its implementation
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5. monitor the compliance of the water service tariff application with this Law,
6. monitor the compliance of the water service tariff application with the
implementation of the business plan of the Provider,
7. provide consultations with the providers and their associations, with the
associations of the end consumers and with the state administration bodies with
competences in the field of water management, communal activities and water
economy
8. assess the Tariff Adjustment Plan and the business plans regarding their
harmonisation with the provisions of this Law and separate law;
9. determine the key success indicators, objectives/targets to be met by the provider
regarding the water service provision, benchmarks for the main success indicators of
the service providers
10. control the operations of the provider for the purposes of implementation of this
Law, and
11. oversee and monitor the application of the legal requirements and acts of the
Regulator
12. provide instructions regarding the implementation of the water service tariffs and
regulatory tariffs and the adequate implementation of the business plan of the
provider,
13. proposes activities for improvement of the efficiency in the field of water services,
capacity building in the field of water services provision, for financial management
and business planning,
14. gives recommendation for affordability level of the prices of water services and,
15. other responsibilities and competences stipulated with this law
IV. PROCEDURE FOR SETTING THE PRICES FOR WATER SERVICES
Article 10
Frame for Tariff Setting
(1) The tariffs for water services shall be set by the Regulatory Commission on the basis of the
submitted Tariff Adjustment Plan for the water services or of the Regulatory Tariff pursuant to the
terms and procedure prescribed by this Law.
(2) In determining the tariffs for water services or regulatory tariffs for water services, the
Regulatory Commission will take into account financial affordability for the households in the area in
which the water service is being provided
(3) Regulatory Commission, at least once in every three years, in the period of the implementation
of intensive investments in water infrastructure, will recommend financial affordability threshold on
the level of household income in Republic of Macedonia, and on every seven years, in the period
with lower investments but with more infrastructural facilities into function in the sector.
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Article 11
Setting of the Water Service Tariff
(1) The provider, in order to set the tariff for the water service provided to the end
consumers, and for the purposes of meeting the objectives referred to in Article 2 of this Law, shall
be obliged to prepare a request for setting of the water service tariff with proposed tariffs and the
same to be submitted to the Regulatory Commission
(2) The provider shall accompany the request referred to in paragraph 1 of this Article with
the following:
- draft Tariff Adjustment Plan, and
- data and reports of the Business Plan which are obligatory for the purposes of setting of
the water service tariffs.
(3) The request referred to in paragraph (1) of this Article and the documentation referred to
in paragraph (2) of this Article shall have to be submitted to the Regulatory Commission within a
period of 9 months, at the latest, prior to the expiry of the validity of the decision determining the
water service tariff i.e. the decision for determining the regulatory water service tariff
(4) The request referred to in paragraph (1) of this Article and the draft plans referred to in
paragraph (2) of this Article, as well as submission of data referred to in paragraph (2) in line with 2
shall be made in accordance with the Methodology for tariffs.
(5) The draft Tariff Adjustment Plan for water services referred to in paragraph (2) of this
Article (hereinafter) Plan for adjustment shall be prepared for a period of three to six years.
(6) The obligatory data and reports of the Business plan referred to in paragraph (2) in line
with 2 of this Article shall refer to the period for which the draft Tariff Adjustment Plan is prepared.
(7) The Request and the plans referred to in paragraph (1) of this Article shall be submitted
together with the draft Plan for adjustment and other data, in written and in electronic form.
(8) For the purposes of preparation of the draft Plan for adjustment the provider shall be
obliged to make a real assessment of the existing infrastructure used for provision of the water
services, and shall obligatory present the assessment data as the basis for calculation of the
expenses for capital maintenance and for the future investments.
(9) The provider shall be obliged, along with the draft Tariff Adjustment Plan, to provide data
on the key success indicators with proposed objectives/targets envisaged to be met by the provider,
which refer to the water service provision with realisation of the Tariff Adjustment Plan and the
Business Plan.
(10) The provider shall be obliged, for the purposes of preparation of the request referred to
in paragraph 1 of this Article and the submissions to the request to use accurate and credible data
that are in accordance with the accounting and other documentation of the provider.
(11) The form and content of the request referred to in paragraph 1 of this Article shall be
determined by the Regulatory Commission by adopting the Tariff Methodology.
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Article 12
Acting on the Request
(1) Regulatory Commission adopts Rulebook on the manner and procedure for determining the
tariff for water service and the regulatory tariff for water service, Plan for adjustment as well other
data (hereinafter submissions) required to be submitted by the provider.
(2) Regulatory Commission by the act referred to in paragraph (1) of this Article establish the
criteria for assessing the submissions and determining the tariffs for water services, the method of
preparing the necessary documents to determine the regulatory tariff for water services, taking into
account the capacity of the provider, deadlines for action, the negotiated procedure as well as the
procedure and conditions when Regulatory Commission is obliged to adopt regulatory tariff for
water services.
(3) The Regulatory Commission is obliged to adopt special guidelines for preparation of request for
determination of tariff for water services, submissions, and the criteria for assessment.
Article 13
Procedure for Setting of the Water Service Tariffs
(1) The Regulatory Commission shall determine the tariff for water services for each provider
separately with the Decision for establishing the tariffs for water services adopted on the session.
(2) The Regulatory Commission shall determine the tariff for water services on the bases of the
assessment of the following :
1. the expenses for provision of the water services and the supporting services,
2. Level of the proposed tariff for water services and the price of the water service,
which will be achieved with the the proposed tariff and its financial affordability
for households for the area in which the water service is being provided, and the
household percentage for which the financial affordability threshold shall be
exceeded,
3. envisaged capital investments aimed towards improving and expanding of the
water services,
4. efficiency of the water service compared with the success indicators, and
5. realisation of the values of the objectives for the following the success
3) During the session on which the decision setting the water service tariffs is being adopted, the
Regulatory Commission shall be obliged to also consider the comments received from the water
service provider or the founder of the water service provider.
4) ) If it is concluded that the submitted comments are of character which might significantly
influence the level of the water service tariffs, the Regulatory Commission may commence a
negotiation procedure so as to harmonise the water service tariffs within a period of 15 days as of
the date of receipt of the comments
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5) The negotiation procedure referred to in paragraph 4 of this Article shall be completed within 30
days as of the date of its commencement
6) If the negotiations shall fail, the Regulatory Commission shall adopt a decision for commencement
of a procedure setting the regulatory tariffs pursuant to Article 16 of this Law.
7) The decision setting the tariffs include the following:
- water service tariff level for every water service that is provided by the provider
- minimum and maximum range expressed in percentage for which it is allowed the
provider to make a decision setting the water service tariff level,
- terms to be met by the provider by reference to the accepted plan for adjustment of the
water service tariff , and
- tariff validity timeframe.
8) In cases where no agreement has been reached with the provider regarding the level to charge for
water service, the Regulatory Commission during the session adopts a Decision to reject the
application for determination of tariffs for water services which contains:
- The grounds for rejection of the request;
- Changes that should be made by the provider in order to resubmit again the request and
- Indicative assessment of the tariffs considerate as appropriate by the Regulatory
Commission.
9) The Regulatory Commission shall be obliged to publish the decisions from paragraph 7 and
paragraph 8 of this Article in the Official Gazette of the Republic of Macedonia and on its website, as
well as to submit them, without delay, to the provider and to the provider’s founder.
10) The provider shall be obliged, without delay, and not later than 15 days as of the date of
publishing of the decision from paragraph 7 of this Article, to submit it to the person in charge of the
management body of the provider for the purposes of making a decision for setting of the water
tariffs.
11) The provider’s management body shall be obliged to adopt the decision from paragraph 10 of
this Article within 15 days as of the date of receipt of the decision and to submit it to the mayor of
the municipality or to the City of Skopje which is founder of the provider, for the purposes of
providing consent for the decision.
12) The mayor of the municipality, the municipality in the City of Skopje or the Mayor of the City of
Skopje shall be obliged, within a period of not longer than 60 days, to commence the procedure for
providing consent to the decision setting the water service tariff.
13) In the cases of paragraph (10) of this Article, when the decision relates to water services for the
provision of raw water for water supply of the population through public water supply system for a
service provider that is a subsidiary of a legal person established under the Law on Water
Management, the management body shall, within not more than 60 days make a decision on
determining the tariff for water service.
14) If no consent is given to the water service tariff setting decision within 150 days as of the date of
publishing of the decision in the Official Gazette of the Republic of Macedonia, the Regulatory
Commission shall adopt a decision for Regulatory Tariff.
(15) The decisions from paragraph (7) (8) and (14) of this Article are final, and no appeal can be
lodged against them. Against the decision (7) (8) and (14) an administrative dispute in front of
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competent court can be initiated by the provider and the mayor of the municipality, the
municipalities of the City of Skopje, or the mayor of the City of Skopje i.e the governing body of the
legal entity established under the Law on Water Management.
Article 14
Application of the Water Service Tariff
(1) The governing body of the provider shall be obliged, within a period not longer than 45
days as of the date of adoption of the consent from Article 13 paragraph (12) and the decision of
paragraph (13) of this Law, to commence with the application of the approved water service tariff of
the Council of the municipality, i.e. City of Skopje, i.e. from the governing body of the legal entity
established under the Law on Water Management.
(2) In the cases when the Council of the municipality or of the City of Skopje ,as well as the
governing body of the legal entity established under the Law on Water Management shall fail to give
consent to the decision setting the water service tariff the management body of the provider shall
be obliged, within a period not longer than 45 days as of the date of adoption of the decision setting
the level of the regulatory water service tariff from Article 13 paragraph (14) of this Law, as well as
the governing body of the legal entity established under the Law on Water Management.
(3) The management body of the provider shall be obliged to harmonise its decisions with
the decisions made by the Regulatory Commission which are of relevance for the implementation of
the set water service tariff.
(4) The provider shall be obliged to comply with the terms that set the water service tariff, as
well as to meet the objectives/targets related to the key success indicators regarding the provision
of the water service.
Article 15
Setting of the Regulatory Tariff in Case of Non-existing Data
(1) In cases when the provider does not deliver a request for determining the tariff for water
services as well as in cases when does not comply with the requirements from the Regulatory
commission for providing additional data from the request , the Regulatory Commission shall be
obliged, within a timeframe not longer than 180 days as of the date of adoption of the decision for
commencement of a procedure setting the regulatory tariff for water services, or no later than 180
days from the deadline of the submission of the application, to prepare a Regulatory Adjustment
Plan for water services for the water service provider, on the basis of which the decision setting the
regulatory tariff for water services can be adopted
(2) The plan referred to in paragraph 1 of this Article shall be prepared by the Regulatory
Commission on an independent basis or with engagement of an authorised auditor from the field of
economy.
(3) The water service provider shall be obliged to make available to the Regulatory
Commission or to auditing company from paragraph (2) of this Article all data and information,
required for the preparation of the plan from paragraph 1 of this Article.
(4) The Regulatory Commission may, in the procedure for preparation of the plan from
paragraph 1 of this Article, ask for supervising audit or request for expert assessment for
determining of the expenses for the water services for the provider.
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(5) The expenses for the supervising audit or the expert assessment shall be on burden of
the provider.
(6) The Regulatory commission in a period not longer than 90 days as of the date of
preparation of the Plan from Paragraph (1) of this Article, is obliged to adopt a decision for setting a
Regulatory tariff for water services for provider, based on the assessment of the data collected in
accordance with paragraph (2) and (3) of this Article, to which the provisions of Article 13 (2) of this
Law shall appropriately apply.
(7) For the purposes of making a decision setting the regulatory tariff for water services
(hereinafter referred to as: Regulatory Tariff ), the Regulatory Commission may commence a
negotiation procedure with the provider. (8) The decision for the regulatory tariff from paragraph (6)
of this Article shall include, in particular, the following:
- water service tariff level expressed as a fixed amount ,
- terms to be met by the provider,
- tariff validity timeframe.
(9) The Regulatory Commission shall be obliged to publish the decision from paragraph 6 of
this Article in the Official Gazette of the Republic of Macedonia and on its website, and submit them,
without delay, to the provider and to the provider’s founder.
(10) The management body of the provider shall be obliged, within a period not longer than
45 days as of the date of adoption of the decision from paragraph (6) of this Article, to commence
with the application of the water service regulatory tariff.
(11) The decision from paragraph (6) of this Article shall be final, and no appeal can be
lodged against it. Against the decision, an administrative dispute in front of a competent
administrative court can be initiated by the provider, the management body of a legal entity
established under the Law on Water economy the mayor of the municipality, the municipalities of
the City of Skopje, or the mayor of the City of Skopje .
(12) The management body of the provider shall be obliged to harmonise its decisions
relevant for the implementation of the set water service tariff, with the decision from paragraph (6)
of this Article.
Article 16
Setting of the Regulatory Tariff in Case of Existing Data
(1) In the cases referred to in Article 13 paragraph (8) and paragraph (14) of this Law, the
Regulatory Commission shall be obliged, within a timeframe not longer than 120 days as of the date
of adoption of the decision for commencement of the procedure setting the regulatory tariff, to
adopt a decision for setting of the regulatory tariff.
(2) The decision from paragraph (1) of this Article shall be adopted by the Regulatory
Commission on the basis of the available data, as well as on the basis of other data that were
additionally submitted or secured by the provider, and on the basis of the relevant application of the
provisions from Article 13 paragraph (2) of this Law.
(3) The decision from paragraph (1) of this Article shall include, in particular, the following:
- water service tariff level, expressed in a fixed amount
- terms to be applied by the provider, and
- obligation for the water service provider to submit Tariff Adjustment Plan pursuant
to Article 11 of this Law and a timeframe for its adoption.
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(4) The decision from paragraph (1) of this Law shall be applied till the adoption of the decision for
setting of the tariffs on the basis of the Tariff Adjustment Plan from paragraph (3) line 3 of this Law.
Article 17
Amendment of the Tariff Adjustment Plan by Way of Exception
(1) The decision setting the water service tariff is obligatory and binding for the provider for
the relevant period.
(2) Notwithstanding paragraph (1) of this Article, and in the cases referred to in paragraph 3
of this Article, the provider can, with a request, initiated a procedure for amendment of the decision
setting the tariffs prior to the expiry of the period to which the decision setting the water tariffs
relates.
(3) The amendment procedure for tariff for water services can be initiated if:
- an important change has occurred of the circumstances that existed in the time of
adoption of the decision setting the tariffs for water services, which resulted into the
need for tariff adjustment,
- higher public interest and emergencies, and/or
- an important change has occurred of the assessment criteria from Article 13
paragraph (2) of this Law.
(5) The request from paragraph (2) of this Article shall be submitted to the Regulatory
Commission in both written and electronic form, as prescribed by the Regulatory Commission.
(6) The Regulatory Commission shall decide with a decision regarding the request from
paragraph (2) of this Article.
(7) The procedure setting the water service tariffs from Article 13 of this Law shall
appropriately apply to the adoption of the decision from paragraph 6 of this Article.
V. SUPERVISION
Article 18
Competence for Performing Supervision of the Law Implementation
(1) The supervision over the implementation of this Law shall be carried out by the state
administration body in charge of the activities in the field of water management (hereinafter
referred to as: the Ministry).
(2) Supervision over the regulations adopted by the Regulatory Commission shall be carried
out by the Regulatory commission.
Competence of the Regulatory Commission for Monitoring of the Plans and Tariffs for
water services Implementation
Article 19
(1) The Regulatory Commission is competent for monitoring of the implementation of the
decision setting the water service tariffs, the regulatory tariffs, and the application of Articles 2 and 5
of this Law.
(2) While carrying out the supervision from paragraph (1) of this Article, the Regulatory
Commission may ask the provider, so as to meet the needs of the supervising entity, to submit data
and information for the adjustment plan and business plan implementation in order to determine
the harmonisation between the decision setting the tariffs or the regulatory tariff and adjustment
plan and the business plan.
(3) The provider shall be obliged, once a year, to submit to the Regulatory Commission a
report on implementation of the set tariffs for water services and realizations of the Adjustment
plan and business plan for each calendar year.
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(4) The report from paragraph (3) shall be submitted within one month, at the latest,
following the expiry of the calendar year to which the report refers to.
(5) The form and contents of the annual implementation reports shall be prescribed by the
Regulatory Commission
(6) The Regulatory Commission shall be obliged to review the report from paragraph (3) of
this Article.
(7) On the basis of the reports from paragraph (3) of this Article, the Regulatory Commission
prepares a report for its work regarding the set tariff for water services which will be included in the
annual report for its work sand submits it to the Assembly of the Republic of Macedonia for its
review according to the Law on Energy.
(8) If the provider shall, although being notified, fail to submit the report from paragraph (3)
of this Article, the Regulatory Commission shall be obliged, within 60 days as of the expiry of the
timeframe for submission of the report, to adopt a decision for commencement of the regulatory
tariff procedure pursuant to Article 15 respectively Article 16 of this Law, depending whether any
data for adoption of the decision setting the regulatory tariff are available or not.
Article 20
(1) In case when the review of the report from Article 19 paragraph (3) of this Law shall
determine that the same has shortcomings or if the decision setting the water service tariff or the
regulatory tariff decision are not fully implemented or the adjustment plan and the business plan on
the basis of which the tariff is set is not being fully implemented, the Regulatory Commission shall
adopt an obligatory instruction for actions for the provider which shall define the correctional
measures, as well as the timeframe for their implementation.
(2) In case the provider shall not act in accordance with the instruction from paragraph (1) of
this Article and, in doing so, it shall create a substantial and continuous violation of the decision
setting the water service tariff and the decision setting the regulatory tariff, the Regulatory
Commission shall be obliged, within 30 days as of the expiry of the last timeframe for application of
the correctional measures from the instructions referred to in paragraph (1) of this Article, to adopt
a decision for commencement of the procedure for regulatory tariff pursuant to Article 15 or Article
16 of this Law, depending on whether the data for adoption of the decision for setting of the
regulatory tariff are available or not.
(3) Article 15 or Article 16 of this Law shall appropriately apply for the cases from paragraph
(2) of this Article.
Article 21
(1) In case, on the basis of own information, it is determined that the provider has failed to
submit a request for setting of the water service tariffs pursuant to Article 12 paragraph (1) of this
Law, the Regulatory Commission shall be obliged, not longer than 15 days as of the date of such
information, to point out the responsibility and the obligation and the legal consequences from the
non-application, and to oblige it to submit the request and the submissions within 60 days.
(2) If the provider shall fail to act in accordance with the indication from paragraph (1) of this
Article, the Regulatory Commission shall be obliged, within 30 days as of the expiry of the timeframe
from paragraph (1) of this Article, to adopt a decision for commencement of the regulatory tariff
procedure pursuant to Article 15 of this Law, for adoption of a decision for setting of the regulatory
tariff.
(3) Article 15 of this Law shall appropriately apply to the cases from paragraph (2) of this
Article.
Article 22
(1) If the Regulatory Commission, on the basis of own information, shall determine that the
water service provider has failed to apply the decision setting the water service tariffs or the
decision for regulatory tariff for water services, it shall be obliged, immediately or not later than 15
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days as of the date of such information, point out the responsibility and the obligation and the legal
consequences due to non-application.
(2) If the water service provider shall fail to act in accordance with the indication from
paragraph (1) of this Article, shall fail to apply the decisions from paragraph (1) of this Article for
more than 3 months form the day of submission off the indication from paragraph (1) of this Article,
the Regulatory Commission shall be obliged to submit to the Ministry a proposal for procedure for
temporary compulsory administration, pursuant to the Law on Waters.
(3) If the water service provider shall apply the decisions setting the water tariff or the
regulatory tariff decision; however, in doing so, it shall create a substantial violation of the terms on
the basis of which the assessment was made for setting of the water service tariffs, and with that, it
shall create a substantial and continuous violation of the terms set out in the decisions, the
Regulatory Commission shall be obliged to submit to the Ministry a proposal for procedure for
temporary compulsory administration pursuant to the Law on Waters
(4) In the case of paragraph (2) and (3) The Ministry , within 30 days of the submitted
proposal for temporary compulsory administration by the Regulatory Commission shall initiate
proceedings to establish temporary compulsory administration.
Article 23
(1) If the water service provider shall fail to pay the charge in accordance with Article 8
paragraph (2) of this Law, the Regulatory Commission shall be entitled to point out to the provider
the obligation and the legal consequences and to oblige it to make the payment within a defined
timeframe which cannot be longer than 90 days.
(2) If the provider shall fail to act in accordance with the instruction from paragraph 1 of this
Article, the Regulatory Commission shall be obliged to initiate a procedure for forced collection of
the charge from Article 8 paragraph (2) of this Law, in accordance with the execution regulations.
Article 24
Right of Control of the Regulatory Commission
(1) The Regulatory Commission shall be entitled to perform control of the water service
provider at any given time, announced or not announced, so as to determine if:
- the provider has submitted a request for setting of the water service tariffs ( Article 11),
- the data of the provider in theAdjustment Plan and the data and reports of the Business
Plan are accurate and credible and are in accordance with the accounting and other
documentation of the water service provider (Article 11 paragraph 10),
- the provider is applying the approved water service tariff in wich the approved price for
water is included (Article 6),
- the decision of the provider from Article 13 paragraph (13) of this Law is adopted within
15 days as of the date of receipt of the decision setting the water service tariffs and if
the decision is submitted to the mayor of the municipality, the municipality in the City of
Skopje or the City of Skopje for the purposes of providing consent for the decision
- the provider complies with the terms under which the water service tariff was set
(Article 14 paragraph (4)),
- the provider meets the objectives related to the key success indicators regarding the
water service provision (Article 14 paragraph (4)),
- ,
- the provider has made available all data and information required for the preparation of
the Adjustment Plan(Article 15 paragraph (3)),
- the provider has harmonised its decisions with the decisions adopted by the Regulatory
Commission (Article 25 paragraph 12),
- the provider has commenced the application of the approved water service tariff (Article
14),
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-
the decision of the provider from Article 13 paragraph (12) and the consent from Article
13 paragraph 12 of this Law is in accordance with the decision setting the water service
tariffs adopted by the Regulatory Commission,
- the mayor of the municipality, the municipality in the City of Skopje and the City of
Skopje submitted the decision from Article 15 paragraph (19) of this Law to the
Municipality council for obtaining consent.
(2) While performing the control, the provider shall be obliged to provide the Regulatory
Commission with access to its premises and shall provide the overall documentation required for
performing the control from paragraph (1) of this Article.
(3) The Regulatory Commission shall prepare minutes for the performed control, which shall
be further submitted to the State Environment Inspectorate and to the provider.
(4) Based on the minutes from paragraph (3) of this Article, the Regulatory Commission is
entitled to submit a request for initiating of a misdemeanour procedure with the competent court.
Article 25
Inspection Supervision Competence
The inspection supervision over the provider or water services of the application of this Law
shall be carried out by the State Environment Inspectorate through the water inspectors.
Article 26
Scope of Work of the Water Inspectors
(1) During the performing of the inspection supervision within its scope of work, the water
inspector shall be entitled:
- to perform control and to determine whether the water service provider charges the
water service consumer with the water service tariff and whether the tariff level was
calculated according to the decision setting the water service tariff or the regulatory
tariff decision (Article 6),
- to perform control and determine whether the water service provider has prepared and
submitted a request and submissions for setting of the water service tariff (Article 13).
(2) While performing the inspection supervision, the water inspector shall, with a decision:
1) order the removal of shortcomings found during the supervision, and shall
determine the timeframe for their removal which cannot be shorter than 30 or
longer than 90 days;
2) stop temporary or permanently all activities that are contrary to the provisions of
this Law, and order the returning in the former situation;
3) inform the Ministry and the Regulatory Commission on the established
irregularities and request for their intervention;
4) prohibit the continuation of the activities and actions that are contrary to the
provisions of this Law, and where it is necessary, order measures to be undertaken ,
and
5) order undertaking of measures and activities for the purposes of removing the
found shortcomings.
(3) The unsatisfied party shall be entitled to lodge an appeal against the decision referred to
in paragraph (2) of this Article with the State Commission for Dealing with decesions of Second
Instance in the field of inspection and misdemeanour proceedings
(4) The appeal from paragraph (3) of this Article shall not postpone the execution of the
decision.
(5) In addition to the provisions of this Law, while performing the inspection supervision,
the water inspector shall appropriately apply the provisions of the Law on Environment, the Law on
Waters and the Law on Inspection Supervision.
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(6) The state water inspector shall be entitled to submit a request for initiation of a
misdemeanour procedure with the competent court.
VI. MISDEMEANOUR PROVISIONS
Article 27
Misdemeanour Sanctions for the Legal Entities Providers of Water Services
(1) A fine in amount of 6.000 euros in denar counter-value shall be pronounced for a
committed misdemeanour of the water service provider, if:
- the request for setting of the water service tariff pursuant to Article 11 of this Law is not
submitted,
- the decision from Article 13 paragraph (11) of this Law is not adopted within 15 days as
of the date of receipt of the decision setting the water service tariffs,
- the decision from Article 13 paragraph (11) of this Law is not submitted within 8 days
from the day of its adoption to the mayor of the municipality, the municipality in the
City of Skopje or the City of Skopje for the purposes of obtaining consent for the
decision,
- no decision on determining the tariff for water services (Article 13 (13);
- the application of the regulatory tariff for water service has not commenced within a
period of 45 days (Article 14 paragraph (2), Article 15 paragraph (10), of this Law,
the decisions are not harmonised with the decisions adopted by the Regulatory
Commission (Article 21 paragraph 7).
-
all data and information required for the preparation of the Adjustment Plan for water
services have not been made available (Article 15 paragraph 3),
(2) A fine in amount of 15.000 euros in denar counter-value shall be pronounced for a
misdemeanour of the water service provider, if:
- the data in the Adjustment Plan and the data and reports of the business plan are not
accurate and credible and are not in accordance with the accounting and other
documentation of the water service provider (Article 11 paragraph 10),
- the terms setting the water service tariff are not complied with (Article 14 paragraph 4),
- access was not provided for the Regulatory Commission to the premises for the
purposes of performing control and the overall documentation necessary for performing
the control from Article 24 paragraph (2) of this Law was not submitted.
(3) A fine in amount of 25.000 euros in denar counter-value shall be pronounced for a
committed misdemeanour of the water service provider, if:
- a water service price is charged which is not approved by the Regulatory Commission
(Article 6 paragraph (2))
- there is no commencement of the application of the set tariff for water services for
more than six months from the day in it should suppose to start using the approved
tariff for water services (Article 14 (2), Article 15 paragraph (10)).
(4) A fine in amount of 30%- of fine weighed for the provider of water service shall be
imposed on the responsible person with the provider of the actions referred to in paragraph
(1), (2) and (3) of this Article.
(5) Misdemeanour procedure shall be conducted for violations under paragraphs (1) to (4) of
this Article and shall be imposed by the court.
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Article 28
Settlement procedure
(1) For the offenses set out in Article 27 of this Law, the competent inspector can the
propose the perpetrator a procedure for settlement before submitting an application for initiation of
misdemeanour proceedings.
(2) In cases where it is agreed to the plea agreement, the penalty of the perpetrator may be
reduced for one half of the maximum penalty prescribed for the offense, and in extremely
extenuating circumstances the fine may be imposed in the amount of one third of the prescribed
fine.
(3) The alignment and settlement procedure are conducted in accordance with the Law on
Environment.
(4) The competent inspector is required to keep record of issued misdemeanour and the
outcome of the proceedings initiated.
(5) The records referred to in paragraph (4) of this Article shall be collected, processed and
stored the following information: name and surname or name of the perpetrator resides, location,
type of violation, the number of misdemeanour payment order and outcome of the procedure.
(6) Personal data of paragraph (5) of this Article shall be kept for five years from the date of
entry in the records.
Article 29
Determining the amount of the fine for the provider of water services is set according to the
Law on misdemeanour .
VII. TRANSITIONAL AND FINAL PROVISIONS
Article 30
Regulations for Execution of this Law
(1) The Methodology setting the tariffs for water service provision from Article 5 paragraph
6 of this Law shall be adopted by 30th September 2016, at the latest.
(2) The instructions for preparation of the application for determination of tariffs for water
services, submissions, and the criteria for assessment from Article 12 paragraph (3) of this Law shall
be adopted by 30th October 2016, at the latest.
(3) Other more detailed regulations for execution of this Law shall be adopted by 30 th
October 2016, at the latest.
(4) The existing Methodology shall be applied till the date of commencement of application
of the regulation from paragraph (1) of this Article.
Article 31
Procedure for Setting the Tariffs and the Tariff Plans
(1) The procedure for setting the water service tariffs in accordance with Article 13 of this
Law shall commence as of 1st November 2016.
(2) The Regulatory Commission shall, by 30th September 2016 at the latest, define the
timeframe for submission of requests for setting of the water service tariff from Article 13 of this
Law according to the size of the water service provider.
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(3) All water service providers, providing water services on territories that are bigger than
10000 equivalent inhabitants as well as that provide raw water for the supply sistems , shall be
obliged to commence with the application of the water service tariffs in accordance with this Law by
1st January 2018, at the latest.
(4) Notwithstanding the providers from paragraph (3) of this Article, all other water service
providers shall be obliged to commence with the application of the water service tariffs pursuant
with this Law by 1st January 2019, at the latest.
Article 33
Cessation of Application of other Regulations
On the date of commencement of the application of the Methodology for setting of the
tariffs for provision of water services from Article 5 paragraph 6 of this Law, Article 6 of the Law on
Water Supplying and Urban Wastewater Drainage (Official Gazette of the Republic of Macedonia No
68/04, 28/06, 103/08, 17/11 ,54/11,163/13 and 10/15) shall cease to be applied.
Article 34
Entry into Force and Application
This Law shall enter into force on the day of its publishing in the “Official Gazette of the Republic of
Macedonia”, and shall be applied as of 1st September 2016.
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