The Financing of Water Supply and Sewerage Services in Romania

Abstract

Water supply and sewerage services represent utilities that must be provided to all users, both the urban and the rural. The responsibility to ensure these services in terms of nondiscrimination and affordability belongs to the local authorities, which in the spirit of decentralization have exclusive jurisdiction on their establishment, organization and operation. Regardless of the chosen management, the funding of water supply and sewerage services, is accomplished by means of the prices and tariffs paid by the users. Their quantum, specific to some social services, covers the costs without allowing the accumulation of consistent profit margins, which would ensure the development of the specific infrastructure from the operators' own funds. It is therefore necessary that funding for the creation and rehabilitation of water supply and sewerage systems to be provided from other sources than the budgets of operators, such as: budgetary allocations of local public authorities, government or European funding programs. This paper is of interest because it captures just how the prices and tariffs for these services are composed, and the entire procedure for foundation, adjustment and modification that follows different rules from those of pricing in the market economy, and it provides a review of the types of programs through which the development of the specific technicalurban infrastructure and the significant increase in the number of users in the past 25 years.