Citizens assessed the announced increase in the price of garbage collection in Podgorica as a blow to the budget and pointed out that the authorities had to show more sensitivity due to the current situation with the coronavirus and not resort to unpopular measures.
"I don't understand that it makes something more expensive under these conditions. It is well known that the economic crisis in society is great because of the coronavirus, many people have lost their jobs, I think we should have listened more because of the current situation", said Marko Perović.
He pointed out that, as far as he knows, the state provided certain reliefs to entrepreneurs due to the coronavirus, so he believes that they were able to spare citizens from price increases.
Garbage collection in Podgorica will be fifty percent more expensive for citizens, and up to a third for some legal entities compared to the current prices. This is the decision of the Board of Directors of "Čistoća", which was adopted on October 20 and sent to the Assembly of the Capital City for approval.
Councilors were supposed to discuss it on October 29, but due to the extensive agenda, they did not arrive. The continuation of the session is scheduled for November 3.
If the Decision is adopted, the price of garbage removal for natural persons will be 0,045 per square meter, that is, 50 percent more than the decision from 2007, which is now valid.
Depending on the amount and composition of municipal waste, legal entities will receive bills increased by 30 to 33,33 percent.
For Marija Radović, the increase in the price of garbage collection is unacceptable.
"More than a third of the salary goes to fees - utilities, electricity, water, garbage, telephone, cable. My salary was reduced, my husband lost his job, it's all because of the corona virus and now they have to raise our fees even more. I don't know what to say, unbelievable," said Radović.
When asked whether they think it is the right time to increase prices, or whether it was possible to wait with that Decision in view of the crisis due to the coronavirus, the company "Čistoća" replied to "Vijesta" that from the adoption of the new Law on Communal Services, Regulation on closer elements and methodology for determining the prices of communal services and the Decision on maintaining cleanliness in the territory of the Capital City of Podgorica, resulted in the obligation to create a new price list in accordance with the aforementioned acts.
"The prices of services are determined based on the elements for the formation of prices, contained in Article 53 and 54 of the Law on communal activities and in accordance with the Regulation on closer elements and methodology for determining the prices of communal services. So, we had in mind the situation in which not only our country but the whole world is currently, but unfortunately the preparation of the new price list could not choose the moment, bearing in mind that it represents a legal obligation - compliance with the regulations, and the prices are determined in accordance with the law and other acts. We emphasize that the current price list for municipal waste removal services was adopted in 2007 and since then there has been no change in the prices of services", they stated from "Čistoća".
In the explanation of the decision submitted to the councilors, it is stated that the price increase compared to the current price is "economically justified because the costs included in the price calculation have been increased by an average of about 50 percent, that is, the existing price is insufficient for the company to provide the conditions for the orderly settlement of obligations stem from the performance of entrusted activities and continuous investment in the work process".
It is also justified by the territorial increase of the area that the company maintains, that is, by the increase in the number of containers that it sets up and collects and transports waste from on a daily basis".
"As well as continuous investment, which created opportunities for the application of prescribed legal solutions, with the aim of environmental protection (construction of recycling yards, selective collection of waste, 'dry' and 'wet' fractions, etc.), as well as with the aim of the application of more modern urban waste collection solutions, such as underground and semi-underground containers, procurement of the necessary machinery, which significantly increased business costs", the explanation of the decision states.
As written in the explanation, the company maintained 2007 containers in 2.790, while that number at the end of 2019 was 4.232, which is an increase of more than 48 percent.
"Also, the number of vehicles and special machines increased from 37 to 68, which had a comprehensive impact on the increase in business costs," the document states.
If the Assembly adopts the decision of the Board of Directors of "Čistoća", it will enter into force eight days after its publication in the Official Gazette of Montenegro.
The regulator calls for prices to be formed in a timely manner
The Regulatory Agency for Energetics and Regulated Communal Activities (REGAGEN) called on municipalities to, bearing in mind the economic consequences of COVID-19, get involved in the formation of prices for the next year in a timely manner.
As they said, the price and quality of water supply and municipal wastewater management services is an important segment of all social spheres, from economic to social to political.
"We believe that the process of adopting new prices must be transparent with the introduction of everyone who has an interest in this area, whether they are on the side of users or service providers".
In accordance with the Methodology for determining prices for the performance of regulated communal activities, which was adopted on the basis of the Law on Communal Activities, water supply and sewage companies were obliged to submit requests for determining new prices by the end of August this year.
The procedure for determining prices and granting consent from the regulator is prescribed by that Methodology.
As stated by REGAGEN, the law stipulates that the price of communal services is determined by the provider of communal activities after previously obtaining the consent of the local Assembly.
Along with the price proposal submitted to the Assembly, the regulator's consent to the price proposal must be submitted.
Employers' union: Additional burden on the economy
The Union of Employers assessed that the increase in prices will put an additional burden on legal entities engaged in a certain activity, that is, it will threaten the ability of business entities to overcome the difficult period we are currently in.
"Respecting the activity and function of 'Cleanliness' and their right to think about their interests, we believe that the coronavirus pandemic and its dramatic impact on the economic reality of Montenegro are sufficient reason for all entities at the state and local level to refrain from activities, which will additionally threaten Montenegrin economic subjects".
They emphasized that, in contrast, and in accordance with their requests sent to the Government and the NKT in the last six months, they call on all those whose decisions affect the business environment and liquidity of economic entities, to direct their actions in the coming period exclusively in the direction of relieving the burden and supporting the economy , in order to preserve as many businessmen and jobs as possible during the crisis.
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