Water Regulation

Revenue caps

At the Danish Water Regulatory Authority, we work to ensure that water and waste water companies become more efficient all the time.

What does a revenue cap consist of?

A revenue cap consists of:

A financial basis that includes the companies' operating, construction and financial costs as well as so-called fixed costs.
Correction of the fixed costs in relation to what the actual costs have been in the previous year.
An individual, benchmarking-based efficiency requirement for the companies being benchmarked.
A general efficiency requirement for all companies regardless of size.
Annual indexation.
Historical over or under-coverage. Any remaining over or under-coverage will be recognised up to and including 2020.
Compliance with previous financial frameworks.
Additions to the financial framework, if applicable. Additions are provided for climate adaptation projects and extensions of supply areas.