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PROFILE OF
THE GERMAN
WATER SECTOR
Arbeitsgemeinschaft
Trinkwassertalsperren e.V.
TT
Deutscher Bund
der verbandlichen
Wasserwirtschaft e.V.
Editor
Association of Drinking Water from Reservoirs (ATT)
German Association of Energy and Water Industries (BDEW)
German Alliance of Water Management Associations (DBVW)
German Technical and Scientific Association for Gas and Water (DVGW)
German Association for Water, Wastewater and Waste (DWA)
German Association of Local Utilities (VKU)
Publishing House
wvgw Wirtschafts- und Verlagsgesellschaft
Gas und Wasser mbH
Josef-Wirmer-Straße 3 · 53123 Bonn
Telephone: +49 (0)228 9191-40 · Fax: +49 (0)228 9191-499
info@wvgw.de · www.wvgw.de
© wvgw Wirtschafts- und Verlagsgesellschaft Gas und Wasser mbH, 2020
Picture credits
Andre/stock.adobe.com (p. 23), AvailableLight/istock.com (title page, p. 20), bluraz/stock.adobe.com (p. 12), Carsten Meyer/
stock.adobe.com (titel page), Ivan Bajic/istock.com (p. 54), kajakiki/istock.com (p. 35), kei907/stock.adobe.com (titel page),
Silvia Steinbach (titel page, p. 6, 16, 32), vegefox.com/stock.adobe.com (p. 40)
The work, including all parts thereof, is protected by copyright. Any exploitation hereof, which is not expressly permitted under
the German Copyright Act, requires prior consent from the publisher. This applies, in particular, in respect of acts of reproduction,
adaptation, translation, microfilming as well as feeding into and processing in electronic systems.
02
PROFILE OF THE GERMAN WATER SECTOR 2020
PROFILE OF
THE GERMAN
WATER SECTOR
2020
03
PROFILE OF THE GERMAN WATER SECTOR 2020
CONTENTS
CONTENTS
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 07
SUMMARY AND KEY MESSAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08
1 WATER AND SOCIETY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
1.1 Clean water as a sustainable development goal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.2 The significance of the drinking water supply and wastewater disposal for society . . . 13
1.3 Maintain water resources and develop infrastructure systems collectively . . . . . . . . . . . 14
1.4 Water as a social responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2 WATER SECTOR FRAMEWORK CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.1 Supply in Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.2 Water management tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
3 STRUCTURAL AND TECHNICAL FRAMEWORK CONDITIONS . . . . . . . . . . . . . . . . . 20
4 LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS . . . . . . . . . . . . . . . . . . . 23
4.1 Role of the municipalities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
4.2 Requirements for the protection, management, and use of waters . . . . . . . . . . . . . . . . . . 25
4.3 Requirements for drinking water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
4.4 Requirements for the treatment of wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
4.5 Technical self-governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4.6 Prices and fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
4.7 Special levies (water abstraction charges, compensation payments, wastewater levy) 31
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PROFILE OF THE GERMAN WATER SECTOR 2020
CONTENTS
5 COMPANY TYPES AND SIZES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
6 WATER MANAGEMENT FROM THE CUSTOMERS’ PERSPECTIVE . . . . . . . . . . . . . . . 35
7 CURRENT DEVELOPMENTS AND CHALLENGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
7.1 Maintaining the supply and disposal infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
7.2 Water 4.0 / Digitalisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
7.3 Personnel development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
7.4 Climate change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
7.5 Anthropogenic influences on the water cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
7.6 Conflicts of use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
7.7 Sewage sludge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
7.8 Conclusion on challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
8 BENCHMARKING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
8.1 Key instrument for performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
8.2 Success factors for benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
8.3 Benchmarking as a generator of catalysts for improvement . . . . . . . . . . . . . . . . . . . . . . . . 58
8.4 Benchmarking has proven itself over time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
8.5 Further development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Selected water supply and wastewater disposal benchmarking projects . . . . . . . . . . . . . . . . . . . . 63
The Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Statement of the Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
List of figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Contact addresses and contact persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
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PROFILE OF THE GERMAN WATER SECTOR 2020
06 PROFILE OF THE GERMAN WATER SECTOR 2020
FOREWORD
FOREWORD
With the “Profile of the German Water Sector The associations encourage the continuous
2020”, ATT, BDEW, DBVW, DVGW, DWA, and VKU, improvement process of companies through
in collaboration with the Association of German benchmarking and have long recommended that
Cities and the German Association of Towns and their members take part in benchmarking projects
Municipalities, have once more produced an up- (Associations’ Joint Statement 2003 and 2005).
to-date overview of water supply and wastewater Benchmarking means comparing and improving
disposal in Germany. It enables the interested one’s own performance by learning from other
public and policy makers to learn all about the participants in a peer group.
services the sector provides, the diversity of tasks it
undertakes, and the current challenges it is facing. Benchmarking, the transparent documentation
As with the four previous editions starting in 2005, of performance in the Water Sector Profile, and
the 2020 Water Sector Profile demonstrates that constant further development efforts are pillars
the modernisation strategy, pursued by politicians of the sector’s continuous improvement, which it
and the water sector alike, remains effective even undertakes at its own responsibility. This approach
under increasingly difficult conditions. has long been recognised and supported by the
German Federal Government in its 2006 report
The Profile documents the high level of performance entitled “Modernisation strategy for the German
of the German water sector in comparison to other water sector”.
European countries and to the rest of the world.
This high level which has been achieved so far, has
to be maintained in the long term and - wherever
possible and wherever necessary - improved.
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PROFILE OF THE GERMAN WATER SECTOR 2020
SUMMARY AND KEY MESSAGES
SUMMARY AND KEY MESSAGES
Performance
People in Germany have drinking water of customer satisfaction, and careful management
exceptional quality available at all times, in of water resources whilst maintaining economic
sufficient quantities. In addition to the good efficiency.
resource situation in Germany, the first-class
technical standards and a range of voluntary These aspects are considered in the 5-pillar
measures taken by the water sector contribute to benchmarking concept. Using benchmarking in
the protection of natural resources. Wastewater various projects throughout Germany, companies
treatment in Germany is also at a very high level. have markedly improved in all performance areas.
In contrast to many other EU countries, almost
100 per cent of wastewater is treated in accordance In order to remain fit for the future, the water
with the highest EU treatment standards. Through sector needs to be efficient, cover its costs, and be
their work, drinking water suppliers and wastewater transparent for customers. Benchmarking projects
disposal companies thus make a considerable are a key instrument in this respect. The main
contribution to a sustainable and comprehensive requirements for the success of the benchmarking
protection of water. and performance indicator projects are that
they are confidential and voluntary, however,
The key performance areas of water supply and consistency and compatibility of data collected are
wastewater disposal in Germany are long-term also essential. To this end, the sector continuously
reliability of supply and disposal, high drinking water works to further develop its performance indicator
quality, high wastewater disposal standards, high systems.
First-class technical standards and compliance with the strict legal requirements result in the high
quality and long-term reliability of German drinking water supply and wastewater disposal.
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PROFILE OF THE GERMAN WATER SECTOR 2020
SUMMARY AND KEY MESSAGES
Organisation and economic efficiency
In Germany, water supply and wastewater Charges, drinking water quality, environmental
disposal are core public services in the general requirements, water abstraction rights and
interest provided within the competence of the discharge rights are subject to strict governmental
municipalities or other public law corporations. control. Increases in charges for drinking water
Their democratically legitimised bodies make the and wastewater have largely been below the rate
strategic decisions regarding forms of organisation, of inflation for many years. Reliability of supply
shareholdings, and working collaborations. The and drinking water quality are of the utmost
companies involved in the supply of water and importance for customers. According to customer
disposal of wastewater in Germany are diverse and surveys, the charges which have to be paid in this
include both public and private company forms. respect are considered appropriate.
The German water sector is one of the largest The specific regional and local framework
customers of the private sector, since planning and conditions determine the rules governing supply
construction services are contracted out on a large and disposal at a local level. Water supply and
scale to outside companies. Companies within wastewater disposal thus always require solutions
the water sector have recognised that the factors adapted to the local situation. This, together with
which ensure their long-term viability are having the existence of differing legal provisions on a
employees with exactly the right qualifications as Länder level, means that the cost and effort faced
well as sector-specific knowledge and skills; for by the companies involved differs. Taking into
this reason, companies have, for many years, been account the respective water consumption and
continuously investing in training young people. performance standards, customers in Germany
pay less for their drinking water than customers in
comparable EU countries.
In Germany, water supply and wastewater disposal are core public services in the general interest
provided within the competence of the municipalities or other public law corporations. Their
democratically legitimised bodies make the strategic decisions regarding forms of organisation,
shareholdings, and working collaborations. Charges, quality, environmental requirements, water
abstraction rights and discharge rights are subject to strict governmental control.
The fees and prices involved are largely determined by the specific regional and local framework
conditions. For many years, increases have remained largely below the rate of inflation.
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PROFILE OF THE GERMAN WATER SECTOR 2020
SUMMARY AND KEY MESSAGES
Tasks and challenges
Increasingly specific requirements are being placed The water consumption of the population has been
on modern, sustainable water management. It is no decreasing for decades, stabilising at a low level
longer simply about the provision of drinking water in recent years. Nevertheless, companies must
and treatment of wastewater. The application of a still provide sufficient capacity to deal with peak
holistic approach, aimed at creating a sustainable, demand and an infrastructure designed to cope
integrated water sector, is becoming increasingly accordingly, as shown, for example, by the dry year
important. As such, in addition to the supply of of 2018. In addition, there are regions in Germany
drinking water and disposal of wastewater, the where competing water demand, e.g. through
responsibilities of a reliable water sector also include irrigation, livestock farming etc., is constantly
water maintenance and the protection of water growing.
bodies, as well as the landscape water regime and
coastal and flood protection. In addition, changes The priority of the public water supply is set
in social priorities influence the work of the water down in law in the German Federal Water Act
sector. As such, a greater emphasis is being placed and constitutionally guaranteed. In light of the
on energy consumption and efficiency, as well as expected rising demands on securing the public
resource protection. Increasing conflicts over the water supply in the future, with increasingly
use of water within the sector must be solved frequent dry periods caused by climate change, it
through social consensus. must be ensured that the legally enshrined priority
of the public water supply over competing uses is
As a consequence of our modern industrial society effectively enforced.
and increasingly sophisticated analytical methods,
the amounts of anthropogenic trace substances Demographic change, increasing urbanisation,
and other contaminants, such as microplastics, and climate change pose great challenges for the
detected in the water are continuously rising. German water supply. For example, they entail
There is a considerable need for research into the markedly increased peak factors in drinking water,
resulting effects on humans and the environment. heavy rainfall events in wastewater, and flood
This challenge must be met through a cooperation discharge into bodies of water. This development
between those causing the pollution, users, and the is leading to a greater divergence between the
water sector. When dealing with trace substances, basic and peak demand levels and thus, due to the
efforts must be focussed on preventing their input measures required, to higher costs.
at source. If this is not possible, action taken needs
to be based on the polluter-pays principle.
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PROFILE OF THE GERMAN WATER SECTOR 2020SUMMARY AND KEY MESSAGES
The German water sector is meeting these well as its practice-oriented research, the sector
challenges by developing solutions tailored to has shown that it is able to cope with these
the respective conditions. Through its extensive challenges.
technical, economic, and scientific knowhow as
The current challenges facing the German water sector are demographic change, looming climate
change, increasing and partly competing demand for water in society, sophisticated detection
and minimisation of input of anthropogenic trace substances and other contaminants as well as
conflicts of use with industry, agriculture, and energy policy objectives. Drinking water suppliers and
wastewater disposal utilities are tackling these tasks and advocating flexible and individual solutions,
tailored to the local conditions and based on social consensus.
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PROFILE OF THE GERMAN WATER SECTOR 20201 | WATER AND SOCIETY
1 WATER AND SOCIETY
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PROFILE OF THE GERMAN WATER SECTOR 2020WATER AND SOCIETY | 1
1.1 Clean water as a sustainable
development goal
The associations involved in producing the Water
“For life without poverty in a healthy environment Sector Profile and their members also professed
and a developing economy, human beings their commitment to these goals and take active
need access to water, sanitation, wastewater responsibility for clean water, for a healthy
management and sustainable water resources environment and for the economic development
management.” (Sustainable Development Goals of our country.
– SDGs). In order to accomplish this, all Member
States of the United Nations came to an agreement Water suppliers and wastewater disposal utilities
in September 2015 on a new common agenda: are the cornerstones for achieving the UN’s water
17 sustainable development goals to be achieved goal (SDG 6) and are major drivers of the Water
by 2030. The SDGs were adopted. The topic of Action Decade (2018-2028) initiated by the UN, the
water was included as an independent goal: guiding theme of which is “water for sustainable
development”. By acting sustainably, the water
“The SDGs make particular reference to the water sector can furthermore also contribute to the
sector in SDG 6 and its performance indicators by achievement of other SDGs.
setting a goal for the international community to
achieve universal and sustainable access to water
and sanitation for all by 2030 (targets 6.1 and 6.2). 1.2 The significance of the drinking
By the same year it also intends to protect water water supply and wastewater
resources against pollution and overuse (targets disposal for society
6.3 to 6.6).”* The integrative approach of the SDGs
means that without goal 6, “Clean water,” the A sustainable water sector in the sense of the UN’s
other goals cannot be achieved either. water goal requires that water is available at all
times in impeccable quality (preventive healthcare)
To accomplish these key goals, underlying and in adequate quantities (security of supply).
conditions in a variety of areas must be addressed. In a more complex world, society must consider
All Member States within the UN have to introduce the interests of the public drinking water supply
the necessary measures and use performance and wastewater disposal in all developments and
indicators to regularly steer and monitor the take into account the respective priority. In public
achievement of these goals. administration matters, the subject of water
must be appropriately included in the technical
With the new version of the sustainability assessment of interests in the planning and
strategy, the German Federal Government has decision-making processes.
also committed itself to these goals as well as to
championing sustainable development beyond its The availability of clean drinking water at all times
own borders. and the high standard of German wastewater
* BMZ Water Strategy: A key contribution to implementing the 2030 Agenda and the Paris Agreement, published by the German
Federal Ministry for Economic Cooperation and Development (BMZ), Berlin/Bonn 2017.
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PROFILE OF THE GERMAN WATER SECTOR 20201 | WATER AND SOCIETY
disposal are the essential basic elements of our 1.3 Maintain water resources and
modern society. They are key factors for the high develop infrastructure systems
level of life expectancy in Germany and important collectively
locational factors for the municipalities. Without
drinking water supply and wastewater disposal, Society is subject to constant change. And as
there would be, for example, no construction society changes, the service providers for the
sites, no industrial estates, no growth. Moreover, drinking water supply and for wastewater disposal
the prosperity achieved could not be maintained need to constantly adapt as well. This is due to
without the preservation and expansion of the the increasing need for renovation and renewal
supply. Awareness must be raised once more measures but there is also a need to adapt systems
in society at large of the immense value of a due to cumulative impacts from social change,
functioning water sector and of water as a regional the progressive consumption of resources, the
product. All producers and consumers must accept globalisation of the economy, demographic change
responsibility for their own actions. and social fragmentation, as well as climate change
and natural hazards.
Drinking water as a resource must continue to be
available to the whole population and to businesses For example, in particular the summer of 2018
at any time, in sufficient quantities and of good showed that whilst the water supply generally
quality. The high standard of wastewater disposal operates smoothly, in some places the need for
must also be maintained. In this regard it is crucial change has become apparent, so that the drinking
that the municipalities bear responsibility for water supply can be guaranteed even during future
ensuring the drinking water supply and wastewater heat waves. Moreover, the wastewater systems
disposal – both of which are public services in have to adapt to the changing climate conditions
the general interest as a key component of social and increasing instances of heavy rainfall. In this
development. regard, water management must be seen in a more
integrative manner. Resilience strategies need to
Our common goal should therefore be to support be developed through a collective learning and
the supply of drinking water and disposal of adjustment process by lawmakers, administrative
wastewater as a social duty. Awareness must be authorities, and the general public, in order to
focussed once more on the importance of the public better protect cities and regions against risks such
drinking water supply and wastewater disposal for as floods or droughts. For example, actors such
Germany’s economic and social development. as town planners must play a greater role and
cooperate with wastewater disposal companies in
However, it is not only the supply of drinking water the area of rainwater retention and environmental
and wastewater treatment themselves that are protection. This would allow new approaches in
important for economic and social development. In integrated rainwater management to be found.
addition, our sector, with its many jobs and diverse
training opportunities, assumes an important social In addition, the drinking water and wastewater
responsibility and provides career opportunities for infrastructure must remain affordable in regions
all generations in urban and rural areas. with low population density while providing
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PROFILE OF THE GERMAN WATER SECTOR 2020WATER AND SOCIETY | 1
appropriate supply and disposal systems in regions responsibility for safe drinking water supply and
with population growth. wastewater disposal - even if tasks are completely
or partially delegated.
The adjustment of systems to take account of
current developments and challenges requires not The principle of local self-government was also
only financial effort but also improved staffing integrated into primary law in the Lisbon Treaty
in the public and private sectors. Innovative of 1 December 2009, as an element of the national
implementation strategies must be developed identity of Member States. The development of
in a collective effort. In addition to funding municipalities is dependent to a great extent on
programmes for municipalities, there is a further the simultaneous development of the supply of
need to develop framework conditions for the drinking water and disposal of wastewater.
implementation of required changes.
Germany has well-functioning systems with regard
Protection of resources has a high priority. The to both water supply and wastewater treatment.
safety of drinking water resources for future This means, however, that there is a danger that
generations must not be jeopardised. Preventive the great value of reliable public services in the
protection of natural resources and sustainable general interest for Germany’s social and economic
management of those resources are efficient development will no longer be actively recognised
approaches for the economy as a whole. In order by everyone. The water sector’s positions are
to protect water resources from harmful impacts generally heard, however, constraints are often
in the long term, the input of pollutants should imposed through compromises which are not in
be avoided in the first place. This represents a line with the UN’s goals.
common social responsibility of all actors.
The associations involved in producing the Water
Sector Profile thus jointly advocate for creating
1.4 Water as a social responsibility the necessary conditions to guarantee a supply of
drinking water and disposal of wastewater which
Water is not a commodity but a sensitive common are sustainable and affordable. When decisions
good that must be treated accordingly. A reliable are made, it should be recognised that the public
water supply is an essential component of the supply of drinking water and disposal of wastewater
public services in the general interest and thus a are the basis of Germany’s social and economic
core task of Germany’s municipalities, which bear development and must be regarded as a priority.
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PROFILE OF THE GERMAN WATER SECTOR 20202 | WATER SECTOR FRAMEWORK CONDITIONS
2 WATER SECTOR
FRAMEWORK CONDITIONS
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PROFILE OF THE GERMAN WATER SECTOR 2020WATER SECTOR FRAMEWORK CONDITIONS | 2
The resource situation in Germany is good. The humid climate (source: German Environment
protection of the valuable resource of water is an Agency, “Water Resource Management in
existential task of the public institutions. Water Germany”). In Germany, the overall use of the
supply and wastewater treatment companies available water supply is 13.5 per cent, of which
support the government considerably in its task the public water supply accounts for 2.8 per cent.
of the long-term protection of bodies of water. The European statistics authority “Eurostat” works
on the assumption that the warning threshold of
20 per cent distinguishes a region without water
2.1 Supply in Germany related problems from a water scarce region. Severe
scarcity is assumed where the water exploitation
Annually, 188 billion m³ of fresh water is available index exceeds 40 per cent. On that basis, Germany
to Germany’s 83.2 million residents, which is has a good resource situation.
regenerated through rainfall in our moderate,
Water usage in Germany 2016 1
Total available water resources 188 billion cubic metres
10.7 %
2.8 %
Non-public water supply 20.1 billion m³
Public water supply 5.2 billion m³
Unused 162.7 billion m³
Overall water use 13.5% (25.3 billion m³)
86.5 %
Source: German Federal Statistical Office, Subject-matter series 19 Series 2.1.1, published December 2018;
German Federal Institute for Hydrology
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PROFILE OF THE GERMAN WATER SECTOR 20202 | WATER SECTOR FRAMEWORK CONDITIONS
Water abstraction by type of water 2
Proportions, 2016
9.3 %
1.2 %
12.3 % Groundwater
Spring water
5.2 Riverbank filtrate
8.0 % billion m³ Lake and reservoir water
River water
7.9 % Enriched groundwater
61.3 %
Source: German Federal Statistical Office, Subject-matter series 19 Series 2.1.1, published December 2018;
German Federal Institute for Hydrology
The median rainfall in Germany amounts to 789 mm It is not only rainfall which has regional variations.
per year, however, there are regional variations. For There are also differences in the availability
example, in 2017 the highest levels were recorded and quality of surface water and groundwater.
at the northern reaches of the Alps with local Hydrological, geological and hydrochemical
rainfall of over 2,500 mm. differences, as well as anthropogenic impacts are
responsible for this.
The driest areas remained the northern Upper
Rhine Valley and the foothills of the South-eastern In a highly industrialised, intensively farmed, and
Harz region, where less than 500 mm of rainfall fell densely populated country like Germany, water
in certain local areas for the entire year of 2017. resources are subject to diverse demands on usage
as well as stresses and strains. It is the job of the
In addition, it generally rains more in the west than government, supported by the companies in the
the east. In 2017, for example, Saarland was the water sector, to nevertheless ensure the best
Land with the most rainfall at almost 990 mm, while possible water quality.
Saxony-Anhalt was the driest Land, at 630 mm
(source: German Meteorological Service).
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PROFILE OF THE GERMAN WATER SECTOR 2020WATER SECTOR FRAMEWORK CONDITIONS | 2
2.2 Water management tasks This is of fundamental importance as there is
no alternative to the existing drinking water
The demands on water use are constantly growing. catchment areas and the current drinking water
It is no longer simply about providing water. Due to supply.
climate change, the probability of extreme weather
events, such as increased heavy rainfall and It must be clear, however, that such cooperation
flooding on the one hand and longer heat waves does not primarily serve to ensure good professional
and drought periods on the other, is rising. Against practice in agriculture.
the background of changed rainfall patterns
and changed groundwater recharge, the holistic Instead, the good practice in agriculture has to
approach, aimed at producing a sustainable, be ensured through water protection legislation
integrated water sector, is becoming ever more at a national level as well as the enforcement
important. Thus, in addition to the supply of of fertiliser legislation. Consequently, the
drinking water and disposal of wastewater, a cooperation model is actually intended to ensure
functioning water sector also includes, among other additional voluntary protection, specifically in
things, water maintenance, reservoir management, drinking water catchment areas. This is where
rainwater management, the protection of water cooperation reaches its limits. As a basic principle,
bodies, the landscape water regime, measures to the party causing pollution of waters must be held
reduce the dangers of climate change and coastal to account to a greater extent. There is a need for
and flood protection. action that goes considerably beyond the voluntary
cooperation arrangements. In this respect, it is
The comprehensive protection of water bodies is necessary for agricultural legislation to ensure that
the responsibility of the government. European the requirements of water law are complied with.
objectives set forth in the EU Water Framework In addition, the authorisation process for plant
Directive (EU-WFD; 2000/60/EC), require a “good protection products must be improved in relation
status” of waters. to the concerns surrounding the protection of
waters.
The areas used by the water sector and by
agriculture partly overlap. For drinking water The 18,341 drinking water and medicinal spring
production, it is essential that groundwater and protection areas in particular, which, at 55,000
surface water is available in sufficient quantities, km², cover 15.4 per cent of the Germany’s land
at a high level of quality, and that it is protected. area (source: UBA: “Water Resource Management
Agricultural production leads to pollution of the in Germany”), contribute to the preventive
groundwater and surface water, especially through protection of drinking water resources. In these
nitrates and plant protection products. areas, stricter requirements, which exceed the
usual, comprehensive protection of waters, apply
In many areas, farmers and water supply companies to potentially harmful water use and the operation
therefore cooperate in the interests of the of connected facilities.
preventive protection of drinking water resources.
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PROFILE OF THE GERMAN WATER SECTOR 20203 | STRUCTURAL AND TECHNICAL FRAMEWORK CONDITIONS
3 STRUCTURAL AND TECHNICAL
FRAMEWORK CONDITIONS
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PROFILE OF THE GERMAN WATER SECTOR 2020STRUCTURAL AND TECHNICAL FRAMEWORK CONDITIONS | 3
The specific regional and local framework The expert opinions produced by Holländer et al.
conditions determine the local supply and (2009, 2013) for the VKU demonstrate the impact
disposal conditions. The production, treatment of the general structural conditions on the supply
and distribution of drinking water as well as of drinking water. External framework conditions
the collection and treatment of wastewater such as urbanity, settlement density, topography
are directly dependent on climatic, geological, or water availability influence the provision of
hydrological, topographical, and settlement- drinking water. The framework conditions resulting
geographic conditions, whereby the specifics of from the physio-geographic conditions as well as,
these conditions vary widely on a regional and among other things, the settlement demographics
local basis. and density, directly affect the four main processes
for providing drinking water (production,
The cost of providing drinking water is dependent processing, storage, distribution).
on the local availability of water resources (spring
water, groundwater, surface water) and the raw The investment activity and modalities for average
water quality. These factors are influenced by, cost of capital, together influence the water
among other things, climate, vegetation, land suppliers’ costs.
use (agriculture, industry etc.) as well as natural,
geologically determined substances in the water The specific regional conditions exist on site and
(e.g. often iron and manganese). cannot be influenced by the supplier. However,
such conditions have a significant bearing on the
As far as wastewater disposal is concerned, the level of technical complexity and thus on the costs
technical design of the sewer system is dependent for providing drinking water. Hence, one cannot
on the local soil and slope conditions. Among other derive any reliable insight into the appropriateness
things, the altitude conditions also determine the of local drinking water or wastewater charges from
number and type of facilities required (e.g. water comparisons of prices and fees that fail to take into
towers, pumping stations, pressure reduction and account any structural differences which may exist.
boosting facilities) and their energy consumption,
both in the water supply and in wastewater
disposal.
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PROFILE OF THE GERMAN WATER SECTOR 20203 | STRUCTURAL AND TECHNICAL FRAMEWORK CONDITIONS
Influence of structural and technical framework conditions 3
on drinking water and wastewater charges
Legal requirements
Water consumption Investment and modalities
for average cost of capital
What influences the
Future
drinking water and
wastewater charges?
Settlement structure Necessary adaptation to
demographic change and
climate change
Natural
Source: VKU
environment
Demand forecasts are crucial for planning long- regions, however, upticks in consumption are
lasting and complex infrastructures. Customer currently being seen due to a change in framework
structures, population numbers (see section 7.1) conditions (e.g. supply for livestock farming
and requirements from industry and business can increasingly coming from the public network).
fluctuate considerably over time. For example,
water demand has been continuously decreasing Water supply and wastewater disposal thus require
since the 1980s due to, among other things, a locally tailored solutions. This, together with
change in customers’ behaviour and an increasing differing legal provisions, leads to varying levels of
use of water-saving devices and taps; in several cost and effort.
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PROFILE OF THE GERMAN WATER SECTOR 2020LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS | 4
4 LEGAL, ECONOMIC, POLITICAL
FRAMEWORK CONDITIONS
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PROFILE OF THE GERMAN WATER SECTOR 20204 | LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS
In Germany, water supply and wastewater The forms of organisation are usually as follows:
disposal are core duties of public services in the
general interest and are the responsibility of Regiebetrieb: Operation by municipality
the municipalities, or other public corporations. within the framework of the general municipal
Their democratically legitimised bodies take the administration.
strategic decisions with regard to the forms of Eigenbetrieb: Operation by municipality as
organisation, participations and cooperation. special asset with independent accounting
(economic autonomy).
Anstalt öffentlichen Rechts: Economically and
4.1 Role of the municipalities legally autonomous public utility.
Eigengesellschaft: Private company with the
The German Basic Law (Article 28 Para. 2) and municipality as shareholder (legal and economic
most constitutions of the Länder ensure the autonomy).
local self-government of municipalities. Self- Operations management model/operator
government comprises all matters concerning model/cooperation model/public-private-
the local community. Local self-government partnership model: Transfer of plant operation
means autonomy in terms of by-laws, supreme to a private operator while the performance of
power in terms of organisational, personnel, public tasks and sovereign obligations rest with
financing, regional and planning issues of cities, the municipality.
municipalities, associations of municipalities, and
administrative districts in accomplishing the tasks With a view to effectively realising drinking water
assigned to them. Municipal codes and the water supply and wastewater disposal, municipalities may
laws of the different Länder stipulate that drinking join forces, also in associations, for cooperation.
water supply is usually and wastewater disposal Usually, this cooperation takes place on a voluntary
is always an obligation of the municipalities. basis, respecting the principle of municipal
On this basis, municipalities decide on the local sovereignty, through inter-municipal cooperation
implementation and organisation of water supply in the form of:
and wastewater disposal for the citizens’ benefit.
Based on the different constitutional provisions Zweckverband as public corporations,
of the Länder, different forms of business Anstalt öffentlichen Rechts as joint
organisation are possible for the implementation enterprises of several municipalities or
of water supply and wastewater disposal on the Wasser- und Bodenverbänden within the
municipalities’ own responsibility as part of their meaning of the German Federal Act on
organisational sovereignty. Wasser- und Bodenverbände.
Some municipalities (such as in North Rhine-
Westphalia) are members of water management
associations subject to special laws.
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PROFILE OF THE GERMAN WATER SECTOR 2020LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS | 4
Public law forms of business are Zweckverbände, for the Wastewater Levy Act and the wastewater
Anstalten öffentlichen Rechts, Wasser- und register. The municipalities and Zweckverbände,
Bodenverbände, associations under special law Anstalten öffentlichen Rechts, Wasser- und
as well as Regiebtriebe and Eigenbetriebe. Private Bodenverbände and water management
law forms of business organisation comprise associations subject to special laws are responsible
Eigengesellschaften or cooperation models in the for maintaining water bodies. Municipalities ensure
form of GmbH or AG (limited liability companies the provision of water for fire-fighting.
and stock corporations). Here, the majority of
shares is usually held by the municipalities. The Cities not attached to districts, and urban
municipalities or their representatives in the districts as lower-tier public health authorities
association’s bodies decide on the form of business are furthermore involved in drinking water quality
organisation for supply and disposal utilities and assurance. Within the scope of planning law, the
on charges (prices or fees, see Chapter 4.6). In cities and municipalities also contribute to the
accordance with the responsibilities determined by development of water management matters for
by-laws, they continue to establish the utilisation their settlement area. In this way, they make an
requirements for all property owners in cities and essential contribution to the local development
municipalities. and implementation of water management
matters. This takes account of local and regional
In addition to these compulsory tasks, requirements. Through the election of municipal
municipalities have to fulfil partial tasks regarding councillors and city leaders, citizens participate in
the implementation of environmental laws issued these processes in a democratic manner.
by the government and the Länder. In accordance
with the regulation of competencies of the
respective Länder, the lower water authorities or 4.2 Requirements for the protection,
the water management offices implement the management and use of waters
water rights within urban districts and cities not
attached to districts as the lower instance of the
“Water is not a commercial product like any other
water management administration.
but, rather, a heritage which must be protected,
defended and treated as such…”
Among other things, the lower water authorities (Extract from the recitals of the
approve wastewater systems, wastewater European Water Framework Directive)
treatment plants, small sewage works, wastewater
and rainwater discharges, use of water bodies, Since 2000, the European Water Framework
such as abstraction from groundwater and Directive (EC WFD; 2000/60/EC) has formed the
surface water and exceptional approvals for core regulatory framework for the protection,
water and medicinal spring protection areas. management and use of waters in Europe and
Furthermore, as supervisory/executive authorities identifies far-reaching objectives regarding the
they are responsible, among other things, for physicochemical, biological-ecological, and
sewage treatment plants, water supply facilities, quantitative status of groundwater, surface water
registration of private wells, flooded areas, water bodies and coastal waters. The goal is to avoid a
and medicinal spring protection areas as well as deterioration of water bodies as well as to improve
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PROFILE OF THE GERMAN WATER SECTOR 20204 | LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS
their condition. The intention is the achievement of 4.3 Requirements for drinking water
the objectives through a cross-sector, integrated
management approach, designed to take into While the EC WFD, FWA, and the water laws of
account, as best as possible, the interdependencies the Länder regulate the role of water supply and
of the water cycle. In this context, the cost recovery wastewater disposal as part of the water cycle, the
and polluter-pays principles must also be adhered German Protection Against Infection Act and the
to. This includes taking environmental and resource EC Drinking Water Directive form the legal basis
costs into account in prices and fees, as well as the for securing and monitoring the supply of high-
allocation of costs according to the polluter-pays quality and hygienically safe drinking water. The
principle. basic requirements in respect of drinking water are
set forth in detail in the German Drinking Water
According to the EC WFD, Member States are Ordinance.
required to provide for the protection of drinking
water resources. The EC WFD has been transposed In that ordinance, the requirements to minimise
into German law via the German Federal Water chemical substances and microbiological impurities
Act (FWA) and the Länder water laws, as well as in drinking water expand the European provisions
additional implementing ordinances. in the interests of consumer protection.
Sec. 47 (1) of the FWA transposes the prohibition As far as compliance with these requirements is
of deterioration into national law and demands a concerned, the German Drinking Water Ordinance
prevention of deterioration of the quantitative refers to the generally acknowledged rules of
and chemical status of waters; all significant and technology. Legal requirements and technical
sustained upward trends in the concentration of rules serve to make drinking water one of the most
any pollutant resulting from the impact of human tested of all foodstuffs.
activity must be reversed.
The FWA further governs the rights and obligations 4.4 Requirements for the treatment
of the water supply and of wastewater disposal of wastewater
companies with regard to the use and protection
of waters. The FWA stipulates that the public water The EC Urban Waste Water Directive (91/271/EEC)
supply is a task which falls within the public services sets out uniform minimum standards for EU Member
in the general interest (FWA Sec. 50). Wastewater States for the treatment of municipal wastewater.
disposal - which has always been recognised as The FWA, supplemented by the Länder water laws,
a part of the services in the general interest - is transposes that Directive into national law.
defined as a public service task. Therefore, both
aspects involve exceptional social importance and The German Waste Water Ordinance (WWO) sets
responsibility. out the implementation of the EC Urban Waste
Water Directive and the FWA in Germany with
Under certain conditions, the Länder may pass, regard to uniform sampling methods, analyses and
in their individual water laws, rules which deviate measurement processes and stipulates minimum
from federal law. requirements.
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PROFILE OF THE GERMAN WATER SECTOR 2020LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS | 4
The WWO requires that state of the art processes such as DIN and VDI on a national level and CEN,
be used for direct discharges, which results in CENELEC and ISO on a European and international
an excellent technical standard of wastewater level.
treatment in Germany.
In this way, the public administration is relieved
The stipulation of uniform analysis methods of tasks which the water sector develops and
ensures a uniform level of monitoring. If treated applies in the scope of technical self-governance
wastewater is discharged into waters, the nature with a high level of quality and innovation on
of which demands even greater requirements to the basis of a broad consensus. This cooperation
be placed on the wastewater being discharged, principle is a cornerstone of German technology
more strict rules – based on the FWA and Länder and environmental laws. The German Federal
water laws – may be defined, in respect of Government’s “standardisation policy concept”
the level of water treatment, in the regulatory expressly commits to technical self-governance
instructions issued by the water authority. The and considers its reinforcement to be an important
Länder authorities monitor compliance with these instrument for reducing bureaucracy.
requirements.
4.6 Prices and fees
4.5 Technical self-governance
Cities and municipalities can arrange the supply
In the rapidly changing world of increasingly of water in organisations under private or public
complex technology, lawmakers limit themselves law. The form of organisation determines the
to setting out basic requirements when drawing nature of the customer relationship. A public law
up legislation. Thereby, they provide the legal customer relationship can only be chosen by water
framework, adherence to which is monitored and supply companies organised under public law.
enforced by the public authorities. In return for the supply of drinking water, these
companies collect, among other things, user fees
In the two technical and scientific associations, and contributions for the construction and renewal
the German Technical and Scientific Association of water supply facilities, their operation and
for Gas and Water and the German Association for maintenance. If a water supply company supplies
Water, Wastewater and Waste, over 3,000 honorary customers on a private law basis, it can invoice
experts from water supply and disposal companies, its customers for the supply of drinking water,
from industry, engineering firms, administrative in particular via water prices, construction cost
authorities and science devise technical rules. and house connection cost contributions. Supply
The specialist public has extensive input into the relationships on a private law basis can be chosen
process through transparent procedures. As such, irrespective of the form of organisation, i.e. a water
the set of rules gains professional legitimacy and supply company organised under public law can
recognition as generally acknowledged rules of also collect payment on a private law basis.
technology to which the acts and ordinances refer,
by way of so-called technology clauses. There Wastewater disposal is a sovereign obligation of
is also cooperation with other standards bodies local authorities. Up to now this has mainly been
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PROFILE OF THE GERMAN WATER SECTOR 20204 | LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS
carried out on the basis of public by-laws, enacted Charges are subject to comprehensive control
under the municipal constitutions of the Länder. by the competent authorities and the courts.
The connection and use obligation as well as the Which control mechanisms apply depends on the
collection of contributions and fees is regulated respective contractual basis of the use (see Fig. 4).
by the municipal levies acts of the Länder. In a few
exceptional cases, wastewater disposal is carried Fees and contributions may only be collected
out on a contractual basis with charges arranged on the basis of a relevant by-law. The power
on a private law basis. to pass such by-laws rests with the elected
municipal representatives. As such, citizens
In the following, the term “charges” is used as a have a considerable say and thus the fees are
generic term for all payments claimed and effected democratically legitimised. All municipal codes
under public law and private law as consideration afford municipal supervisory authorities a general
for the supply of goods and services. right to receive information from the municipalities.
Some municipal codes even grant a direct legal
The setting of fees in Germany is subject to right to information to the citizens paying the
specific legal provisions. The municipal levies acts fees. In light of this, there is no need for price-
and municipal codes of the Länder set out the abuse control under anti-trust law. It was therefore
framework for the calculation of fees. Accordingly, clarified in the scope of the eighth amendment to
the principles of public financial conduct essentially the German Act Against Restraints of Competition
apply, such as the principle of equivalence that the provisions on price abuse control in anti-
(proportionality), the cost-recovery principle, the trust law do not apply to fees and contributions.
prohibition of cost overruns, the principle of equal
treatment and the implementation in accordance The decisions on water supply pricing in companies
with economic principles. incorporated under private law are usually made
by the supervisory board, on which, in the case
There are generally no special legal provisions of municipal companies, elected municipality
governing the calculation of water prices. representatives ensure that the public has a
Nonetheless, according to the case law of the considerable say. The anti-trust law assessment of
German Federal Court of Justice, the principles water pricing is the duty of the Länder anti-trust
covering the calculation of fees must also be authorities or, in the case of activities across several
applied accordingly to the calculation of prices. In Länder, by the German Federal Cartel Office.
individual cases, this is additionally governed by
the municipal levies acts. Within the scope of the examination of pricing
under anti-trust law, the anti-trust authorities
The collection of fees or prices requires that the must liaise with the competent supervisory
costs be calculated in a comprehensible and authority.
consistent and therefore verifiable manner. The
associations provide a number of supporting
guidelines and calculation tools.
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PROFILE OF THE GERMAN WATER SECTOR 2020LEGAL, ECONOMIC, POLITICAL FRAMEWORK CONDITIONS | 4
Monitoring of prices and fees 4
Public law companies Private law companies
free choice
Public law fees Private law prices
Municipal Administrative Civil Cartel
supervisory court court authority
authority
Monitors and
Reviews Investigates on Investigates on
investigates on
by-laws customer request customer request
suspicion of abuse
MONITORING INSTITUTIONS
Source: VKU
This requirement under the German Act Against appropriateness (fairness) of the agreed water
Restraints of Competition ensures that a one- price in relation to the service concerned, namely
sided consideration of costs is prevented and that the supply of water. Here too, the assessment
the special conditions of the supply of drinking is made on the basis of the principles or rules of
water are appropriately taken into account. To this public financial conduct.
end, the German Federal Environment Ministry and
the German Federal Ministry of Health published One of the main characteristics of the supply of
their “Catalogue of precautionary services of water water and disposal of wastewater is the complex
suppliers for the protection of waters and health” infrastructure and the long-life duration of assets
in the German Federal Gazette in August 2014. of up to eighty years. In the case of reservoirs this
period is even longer. The great technical costs
In addition to anti-trust supervision, there is also and efforts involved in the renewal and expansion
the fairness test under Sec. 315 German Civil Code of infrastructure as well as in the operation and
which can be asserted by consumers through maintenance is reflected in the cost structure.
the civil courts. The court then examines the
29
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