profits

The heatwaves and prolonged periods of high temperatures brought an increase in profits to the country’s two largest drinking water providers, the water supply companies EYDAP and EYATH.

In particular, during the first half of the year, according to the financial results announced by the two listed companies, Ebitda profits increased for the water company of Attica by 57% and for that of Thessaloniki by 125.38%.

EYDAP

In particular, for EYDAP, the total consumption in the first six months of the year showed a significant increase of 7.6% compared to the corresponding period last year and was affected by the warmer weather conditions that prevailed, with fewer days of rainfall, combined with episodes of African dust transport in the spring. Revenues from water supply (and related services) and water consumption, which is also the main category of water supply revenue, showed an increase of 7.8 million euros (+8%). Thus, the increase in turnover by 7.2% (from 162.6 million euros in the first half of 2023 to 184.5 million euros in the first half of 2024) is mainly due to the increase in water consumption by 7.5%.

The temperatures of the period in Attica moved above the long-term average for the data of the season, while in the month of June they exceeded the maximum value, with no rainfall. The change in climatic conditions had started from the second half of 2023, where prolonged high temperatures were observed during the summer, but continued more strongly in the first half of 2024, peaking in June.

However, billed consumption rose by 2.9% as a significant portion of the first half’s increased total consumption is set to appear in billed consumption data in the next financial period. And this is due to the process of counting and issuing water bills, which incorporate a period of consumption depending on each customer category (e.g. three months in the household tariff).

However, the company estimates that consumption is expected to normalize in the coming months with the drop in temperature and the expected performance of the information campaign that has been launched to save water.

High consumption in Thessaloniki

Corresponding increases in water consumption are demonstrated by EYATH’s turnover, which came from sales of water supply and sewage services and amounted to 36.8 million euros compared to 34.8 million euros during the corresponding period last year, marking an increase of 5.71%. which comes mainly from the increase in consumption among residential and business tariff customers.

However, the company’s revenues are cyclical (increased water consumption during the summer months), just like EYDAP’s, with the consequence that there are significant fluctuations from quarter to quarter in its turnover and results. Thus, according to the half-yearly report, “during the 2nd half of each year, the increase in consumption seen in the summer months is recorded, boosting the company’s turnover compared to the first half”.

Water scarcity threatens Attica, not Thessaloniki

As for the specter of water scarcity, it looms over Attica, but not in Thessaloniki. In particular, in the basin, after two years of drought and the consequent reduction of stocks in EYDAP’s reservoirs, the company has already proceeded to take immediate measures by activating alternative sources of water supply (wells in Mavrosouvala, Lake Ylikis). It is also planned to immediately activate the boreholes of the Middle River of Boiotiko Kifisos which, through the Union Aqueduct of Distomo, will supply the Mornos Aqueduct with a daily drainage capacity of 150,000 m3 (cubic meters), while at the same time the evaluation of the underground aquifer of the Vasilikon-Parori drilling area has been launched.

They have also studied medium and long-term measures and projects in order not to threaten the safe water supply of citizens, worth 400 million euros within five years for the optimal management of the water supply network. In the medium term, the reinforcement of the Evinos reservoir from rivers that feed the Kremasto lake is included (up to approximately 200 million square meters depending on the needs). For this purpose, the relevant study and tender process will be launched. The option of desalination as a strategic reserve and/or as an immediate implementation measure is still being considered.

In the long term, additional projects are planned for the reinforcement of the Evinos reservoir from Lake Kremaston and the reuse of water from Psyttalia for industrial use and irrigation, as well as for the enrichment of the water table.

However, it should be mentioned that the alternative sources of water abstraction are much more energy-intensive than the main water supply system that operates by gravity and, in any case, as EYDAP points out, the responsibility of the adequacy of the natural resource to meet the needs of the citizens as well as the increased operational cost, is borne by the state which also owns the entire external water supply system.

The lack of water does not (yet) threaten Thessaloniki

EYATH does not face particular water shortage problems. Its main sources of water abstraction are located in areas that are less affected by the effects of climate change and are therefore less at risk of water scarcity. At the same time, through continuous monitoring systems of the water supply network installed by EYATH, the reduction of water losses is achieved.

In addition, it tries to keep the water table in excellent condition, so that it can be used in case of severe climate changes, while for the future it aims to be the main source of surface water coming from Western Macedonia, as the specific area is not going to faced with water scarcity phenomena. However, in periods of water scarcity, EYATH implements a program of reusing treated water at the Thessaloniki Wastewater Treatment Plant (SWTP) for the irrigation of lands in the Chalastra-Kalochori plain.

Mergers and investments

“Key” to dealing with the water shortage is also the strengthening of the water providers, mainly EYDAP and EYATH, through mergers and acquisitions. The goal of government planning is to reduce their number across Greece to a quarter. Today there are 292 water service companies (EYDAP, EYATH, 125 DEYA, 156 Municipalities, 8 Municipal water supply associations and the Crete Development Organization), most of which are small and weak.

In order to strengthen them, EYDAP will be extended at least to the rest of Attica, Corinth, Boeotia and Phocis. To support the arid islands and Crete, the decommissioned “EYDAP Islands” will also be activated to carry out larger projects where the local provider is weak and the collection rate is insufficient (less than 85%), while in the Cyclades, where there is an acute water shortage crisis, take overall responsibility. As for EYATH, it will be extended at least to the rest of Thessaloniki and Halkidiki.

The general rule will be one water provider per regional unit on the mainland, while incentives will be given for further mergers of regional Municipal Water Supply and Sewerage Undertakings (MWSUs) or for the absorption of smaller ones by larger ones after they have been financially sound (with government subsidies) in order to they can then proceed to invest.

What will happen next with the invoices?

As for what will happen next with water tariffs, the “knife” is held by the Waste, Energy and Water Regulatory Authority (RAAEF), which is now responsible for the tariff adjustments which will be made on an annual basis. The administration of EYATH had already proposed staggered increases, depending on consumption and will be based on inflation, i.e. around 2.5%. But the management of EYDAP also considers the adjustment of tariffs imperative.

In particular, from now on the tariffs will be determined by each provider and will go through the control and approval of the RAEA. However, the MIA is still awaited which will set clear rules, as defined by the European Directive 2000/60 which requires full recovery of the cost of water services. Today, the level of cost recovery of water service providers (except for EYDAP and EYATH which have full cost recovery, according to their statement), ranges from 21% to 193%, with the unweighted average being at 83%.

The KYA will give the possibility of setting different prices per region, a tiered charge according to consumption levels with the obligation that the first level of consumption is affordable and covers the living needs of the population. At the same time, a special tariff will be provided for specific users such as public social infrastructure, vulnerable households and families with many or three children.

Source: ot.gr