The Danish customer owned water utilities have the difficult task to plan and operate an efficient and well-functioning production and distribution of tap water. Doing so, Danish utilities face two main challenges going forward: Firstly, the investments are expected to increase significantly in the future implying higher prices. Secondly, costumers demand higher quality, services and individual solutions, which also implies higher prices.
Our two most recent studies deal with these challenges and outline solutions for going forward. First, we provide an overview of how Danish water utilities can initiate the work with asset management under the current regulatory setup. Second, we analyse the weaknesses of the current regulatory setup, develop a new dialogue based regulation and make recommendations for a reform.
We find that the Danish revenue regulation should take the next regulatory step towards a more forward and customer oriented approach. In that context, the Danish water utilities are ready to embrace the opportunities within digitalization, innovation, corporation, asset management, benchmarking etc. going forward. However, Denmark needs a reformed regulation providing more freedom of methodology.
For further information, please contact Malte Lisberg Buhr