Danish Water Regulatory Authority
As regulator for the water sector in Denmark we enforce the Danish Water Sector Act, which regulates the financial framework for water and waste water companies, to ensure that Danes get cheaper water.
About water regulation and our tasks
Our task is to make sure that the water and waste water companies are efficient, supplying drinking water and handling waste water at stable and low prices, while ensuring high quality and reliability of supply at all times.
The water sector is characterised by natural monopolies. This means that businesses and households do not have the option to choose freely among different suppliers, as they do with other products in a free, well-functioning market. Monopolies can lead to prices that are unnecessarily high. Financial regulation is designed to strengthen the incentive for companies to streamline, innovate and invest cost-effectively – for the benefit of the budgets of all households and businesses.
As a regulator, we regulate water companies by using benchmarking and by setting annual revenue limits and efficiency requirements. In addition, we prepare guides, analyses and professional articles, work on method and model development and actively contribute to the development of supply policy in Denmark.
Our most important tasks include:
- Establishing the annual financial framework for the companies
- Calculating individual efficiency requirements through benchmarking for companies with a charged water volume of more than 800,000 cubic metres
- Conducting annual monitoring of company compliance with the financial framework
- Handling complaints related to the financial frameworks of the companies
- Supporting the companies' work to comply with the Danish Water Sector Act with guidance, advice etc.
- Handling and supervising municipal reports in accordance with the Danish Stop Act and related regulations
Do you have any questions?
Send us an email: vand@kfst.dk
For press-related inquiries, please contact: +45 41 71 50 98
Consumer willingness to pay for improvements in the water sector
The analysis provides inspiration to how the needs of water consumers can be included in the economic regulation of water companies.
Articles about water regulation
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