Conducting public utilities in Serbia: Providing and maintaining services in Kragujevac

Abstract

Purpose: The purpose of this paper is to demonstrate the conditions and manner in which communal services are performed in Serbia. All public utility companies face significant issues such as unclear ownership, politicized management, insufficient funds for investment, and dominant market positions. These issues are cited as reasons why they are ineffective, chronically illiquid, insufficiently modernized, and unable to offer citizens satisfactory service quality. Design/methodology/approach: The article is based on an analysis of current legislation, especially the Law on Communal Services and the Law on Public Enterprises, and on laws regulating the communal sector. Since this area is in transformation, proposals for new laws are discussed with strategies for restructuring public utility companies and with suggestions from experts on drafts of legislative solutions. Findings: The article points out major issues related to inefficiency of public utility companies, and the reasons why citizens are provided with low-quality services. Research limitations/implications: There is a dearth of literature, especially critical literature, on this topic in Serbia. This paper fills this gap partially. Practical implications: This paper has direct implications for improving performance of communal services in Serbia. Combining all other observations and suggestions, it should intrigue creators of new legislative solutions in this area. Originality/value: This paper is based on a survey of existing legislation and legislation under review, representing a significant contribution to understanding the issues faced by the communal sector. © Emerald Group Publishing Limited.