Serbia's Republic Directorate for Communal Services

Abstract

Purpose: Serbian communal services sector reform is of vital significance for reform of the entire public sector. Toward such reform, 2010 saw two drafts of the Law on Communal Services that include creation of a Republic Directorate with the goal of promoting and developing communal services. The author aims to analyze the solutions from the draft regarding the status of this Directorate and its powers essential for effective operation. Design/methodology/approach: This paper analyzes the draft of the Law on Communal Services, as well as the comments provided by management of utility companies and wider professional public concerning drafts of the law. The paper also analyzes other legal acts connected to communal services, such as the current Law on Communal Services, Law on Public Enterprises and Services of Common Interest, Law on Companies and Law on Public Property. Findings: This paper points out consequences resulting from extensive but inefficient power of the Republic Directorate for Communal Services, concerned primarily with prices of communal services and entrusting communal services to such a position. Research limitations/implications: No literature exists concerning the Serbian Republic Directorate for Communal Services. The author was limited in research sources so the result of the paper is prediction of possible outcomes of establishing the Republic Directorate for Communal Services in the Republic of Serbia. Practical implications: If while drafting a new Law on Communal Services the view is accepted that directorates have authority, it achieves the purpose for which it was established, economic regulation. Originality/value: The author in this paper provides insight into some directions in which communal sector reform goes. Given the fact that the draft of the Law on Communal Services foresees the establishment of the Republic Directorate for Communal Services as an entirely new regulatory body, this article focuses on the problems that this body might face in the process of fulfilling its major objectives, predominantly in the economic sphere. © Emerald Group Publishing Limited.