Ministry of Construction and Physical Planning

Utility Management

In terms of the Utility Management Act, utility management means carrying out utility activities, and in particular, provision of utility services and financing of construction and maintenance of facilities and equipment of the communal infrastructure as a comprehensive system in the area of local self-government units as well as counties.

The local self-government units and legal and natural persons which carry out utility services are obliged pursuant to the Utility Management Act and special regulations to ensure permanent and quality performance of utility activities and maintenance of municipal facilities and equipment in a state of functional operability. Likewise, they are obliged to ensure their operation to be public and the performance of utility services to be based on the principles of sustainable development.

In terms of the Utility Management Act, utility activities comprise: public passenger transport, maintenance of cleanliness in public areas (except in parts related to collection and disposal of municipal waste on regulated landfills and utility services of municipal waste disposal), maintenance of public areas, unclassified roads, outdoor retail market places, as well as maintenance of cemeteries and crematorium, carrying out chimney sweeping works and public lighting.

Utility activities can be carried out by companies, public institutions and services – own facilities established by local self-government units, legal and natural persons on the basis of concession agreement, and legal and natural persons on the basis of contracts on entrusting utility services.

In order to regulate in more detail relations in utility management, representative bodies of local self-government units are obliged to pass a decision on municipal order and measures for its implementation. The development of settlement, maintaining cleanliness and preservation of public areas, use of public areas, collection, transport and treatment of collected municipal waste, snow and ice removal, removal of illegally placed objects, measures to enforce public order and penalty provisions, are prescribed by the decision on municipal order. Monitoring the municipal order implementation is carried out by the enforcement service.

The funds for performing utility services are provided from: utility service price, utility charges, budget of the local self-government and other sources under special regulations. 

Additional information:
Utility Management Act
Official Gazette 26/03 (consolidated text), 36/95, 70/97, 128/99, 57/00, 129/00, 59/01, 82/04, 178/04, 38/09, 79/09, 49/11, 144/12, 147/14 

Public Utility Management
Public utility charge
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