The next regulatory step for customer owned Danish water utilities

Original title: Næste skridt i reguleringen af de forbrugerejede drikkevandsselskaber med en debiteret vandmængde mellem 200.000 og 800.000 m3

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 – as we find in our study – 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.

In our study, we analyse the weaknesses of the current regulatory setup, develop a new dialogue based regulation and make recommendations for a reform.

The study is commissioned by Danske Vandværker.

Available for download is the full study in Danish.



Related work

Swedish Smartgrid (Forum för smarta elnät) Investments for smart grids
Danish Ministry of Energy, Utilities and Climate Analysis of return and investments in the Danish water sector