PUC – Public Utility Companies

Significant resources from a range of organizations have been allocated to the identification and examination of challenges facing municipalities and PUC’s in Serbia, resulting in a substantial number of recommendations for reform. The Green Paper and a Draft Strategy have been prepared under the auspices of the Standing Conference for Towns and Municipalities (SCTM) and the Ministry of Economy and Regional Development (MERD).

The Green Paper presents a comprehensive menu of options in the areas where reform is needed, including governance and corporatization, regionalization of services, tariff policy, and private sector participation. The purpose of the paper was not to make concrete recommendations but to explore options and suggest ways towards reform. The Green Paper was adopted by the SCTM as representing their own appreciation of the key policy issues to be resolved.
Legislation passed in 2007 devolved the responsibility for PUC reform to the Ministry of Economy and Regional Development (MERD) and MERD is committed to and responsible for the preparation of an agreed Strategy for PUC reform.  MERD has recently established and chairs an Inter-Ministerial Working Group on this issue.

The role of the MISP is to support MERD and other central and municipal level bodies in the implementation of the Strategy and Action Plan for PUC Reform.  There are a number of key issues which need to be addressed as part of the PUC reform process:

  1. Ownership of Assets
  2. Governance
  3. Tariff policies
  4. Regulation

The measures to be included are likely to fall under three broad headings:

  • Legal – preparation, review and revision of legislation, regulation and ordinances
  • Organisation and management – at the PUC level and at the level of municipal administration, including human resource management, IT systems
  • Regulatory reform – establishing some form of central oversight

MISP will support inter-municipal cooperation for the regionalization of environmental services, particularly in waste management and water services. Reference is made to following projects:

 This activity is expected to result in replicable inter-municipal agreements and in the identification of regional projects.



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