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.
The production and distribution of tap water takes place under the Danish revenue regulation, which set an upper limit on allowable revenue. To cope with the above mentioned challenges under the current regulatory setup, we find that the Danish water utilities have a lot to gain from asset management. Especially, together with the opportunities within digitalization, innovation, corporation and benchmarking.
In our study, we provide an overview of how Danish water utilities can initiate the work with asset management under the current regulatory setup.
The study is commissioned by Danske Vandværker.
Available for download is the full study in Danish.
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