Drinking water demand determinants: Evidences from Vlora city

In Albania there are plenty of natural water resources, a fraction of these reserves cover the need of population for fresh, clean drinking water. But this sector presents several critical problems related with water suppliers. It seems they have not completed the decentralization process; they depend on state subsidies to cover losses from uncollectible bills. Literature shows traditional forms of financing of water supplier in different economies (developed or not). One of the classic financial forms is to increase the rate paid bills. The water should be seen as product that has its own market and an equilibrium price. But do the citizens of Vlora city perceive in adequate way this concept? Should be an economical problem for them if the water tariffs increase or are they using alternative resources of drinking water? The article aims to give a descriptive overview of water industry and suppliers in Albania and especially empirically conclusions about of the situation in Vlora city, focusing on the perceptions of citizens. Are the accumulated financial losses of water supplier correlated with the citizens’ perception about water as a public good? It's been used data through a structured questionnaire (Zeneli F., WP-Questionnaire, 2015) about 160 families, were part of the survey; also data from General Directorate of Water in Albania; elaborated using statistical software IBM SPSS 21, to identify link between determinants of drinking water demand in the sector. The main conclusion is that citizens see the water provider service a public good, while from water suppliers water distributed is their product that provides their market position and their economic sustainability. Let this paper be one of the first in the topic to determine drinking water demand determinants in Vlora city.