New water usage fee model introduced in Croatia to combat losses

Croatia is introducing a new system for calculating water usage fees, aiming to tackle the nation's substantial water losses. The regulation, effective January 1, 2026, targets the public water supply sector, where approximately 50% of water is currently lost before reaching consumers.

According to a 2024 report, out of 528 million cubic meters of water drawn, only 272 million were billed. This 52% loss, termed "non-revenue water," is attributed to factors like aging infrastructure, technical issues, and unauthorized consumption. The government aims to reduce these losses to a more acceptable 25%, aligning with the average seen in most European Union countries.

Under the new model, public water suppliers will not be charged for losses up to 25%. However, those exceeding this threshold will be subject to fees unless they achieve prescribed reduction targets over a five-year period. The Ministry of Environment and Green Transition asserts that this change will not negatively impact citizens, local governments, or the state budget, as the fees are levied on suppliers and cannot be passed on to consumers.

Minister Marija Vučković emphasized the importance of responsible water management, stating, "Water is one of the most valuable resources we must manage responsibly. That's why we are investing in system modernization and loss reduction." The new approach gradually incorporates water intake volumes and provides a transition period for suppliers to adapt, encouraging faster loss reduction while ensuring financial sustainability. This reform is a cornerstone of Croatia's National Recovery and Resilience Plan.

Water loss percentages vary significantly across regions. Međimurje reported around 22% in 2024. However, Vodne usluge in Bjelovar saw its non-revenue water increase to 39.6% last year. The company attributes this sharp rise to the merger of smaller water supply companies lacking the resources for effective loss reduction measures. While Bjelovar's central service area has a slightly higher loss of 27.12% due to ongoing pipeline replacement projects, other parts of their service area contribute to the overall 39.6% average, a figure the company deems unsatisfactory and is actively working to improve.

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Water is one of the most valuable resources we must manage responsibly. That's why we are investing in system modernization and loss reduction.