Natural Monopolies In Albania: Problems And Regulation. The Case Of The Water Supply & Sewerage - Economicus

By, DR. Denis VELIU, Iskra HAXHIHYSENI

Abstract

Purpose: This paper examines the problems of the water supply & sewerage (US&S) sector in Albania and the way they have been carried over time. Through the paper, there are described financial problems of the Albanian water industry and the current regulatory methods. Methodology: The authors have used a systematic literature review on 19 case studies of WSS industries in countries like: England, France, U.S.A, etc., to identify politics and conditions, which have helped developed countries to overcome low performance problems, in the industry of water supply and sewerage. Secondary sources, such as: scientific studies on natural monopoly, case studies of developed and developing countries, a series of manuals on regulatory practices, followed by Western countries, have been analyzed, for comparative purposes. Also, data from annual performance reports of the water supply sector, strategic plans, ERRU regulatory acts and the Constitution of the Republic of Albania, are also used. Findings: The implementation of a series of reforms led to significant improvements until 2007. However, after 2007, and especially the 2014 reform for decentralization and transfer of control of the sector to the local level has put the water supply sector in the performance stage where operating efficiency has decreased and performance has not improved. Value: In response to the current mismanagement of electrical energy, Energy Efficiency Improvement Plans should be drawn up for US&S companies. Also, this paper offers a valuable comparative approach between countries of which this monopoly has been managed efficiently.

Keywords: natural monopolies, public good, water supply and sewerage, Albania, regulators.

How to cite: Veliu, D., & Haxhihyseni, I. (2023). Natural monopolies in Albania: Problems and regulation. the case of the Water Supply & Sewerage. Economicus, 22(2), 81–90.

https://doi.org/10.58944/euaz5833