Drinking Water Quality and Management in EU Countries

The EU's Water Framework Directive is the roadmap for water management across Europe. The first part of this directive states that water is not a commercial product but a heritage to be protected. 

Accordingly, if water is a public good, the rules regulating the technical, economic and managerial aspects of drinking and potable water services in the EU must be provided by the public and private operators of these services. 

In the EU, the management of water services is seen as fundamental to achieving the EU's Green Development and UN Sustainable Development Goals. However, it is reported in some reports that many people are not aware of this relationship and these envisaged goals.  

EurEau, the umbrella organization of drinking and potable water utilities in 29 EU countries, has published a report on the current state of water services in Europe. In this report, the current situation regarding management models, organizational structures, duties and responsibilities of institutions and organizations, and governance levels in 29 EurEau member countries is presented. In other words, this report provides an overview of water services governance models in EU Member States. This report is an important source as it is the latest study on this subject. 

1. WATER SERVICES IN THE EU 

In the EU, water services are organized at two levels: the EU as a whole and the national scale. The Water Framework Directive (WFD), Water Industry Directives (Drinking Water Directive (DWD), Urban Waste Water Treatment (UWWTD) and Bathing Water Directive (BWD)) set environmental and health standards and national laws of all member states are regulated accordingly. 

In the EU, the choice of the management model for water services has been recognized as a matter of delegated competence (Protocol 26 to the Treaty on the Functioning of the European Union) and a competence of the Member States. The EU institutions have no influence on the choice of water management models by Member States.

Water services are defined in Article 2 (38) of the SEA as follows: 

"Services provided to households, public bodies or any economic activity to provide: 

(a) Water abstraction, capture, storage, treatment and distribution of surface water or groundwater, 

(b) Wastewater collection and treatment facilities services." 

However, as the management of water services is a matter of national choice, the definition of 'water services' varies from country to country and may include different activities that go beyond the definition in the SEA. In general, however, the supply of drinking water and the collection and treatment of wastewater fall under the definition of 'water services' in all European countries. 

In most EU countries, water utility administrations are also responsible for the management of stormwater.  In some countries, however, stormwater activities are not included in the scope of this service. In a few countries, flood protection and recycling services are also included.

2. GOVERNANCE MODELS 

Water services in EU countries are mainly provided through four different management models. 

Direct public management: In this system, the relevant public authority is fully responsible for service delivery and management. In the past, this system has been widely applied in Europe. 

Delegated public authority (indirect public) management: In this system, the responsible Ministry authorizes an institution to perform water services management tasks. In this model, water utility infrastructure usually remains in public ownership, although in some cases in the EU a small private shareholding is possible. 

Delegated private sector management: In this system, the responsible Ministry authorizes a private company to provide water services for a pre-determined period of time. This agreement takes the form of a lease or concession contract. In countries where this method is common, local governments contract out their own duties and responsibilities for water services to the private sector. However, ownership of the water infrastructure remains with the public sector. 

Direct private sector management: In this system, all management tasks, responsibilities and ownership of water utilities are in the hands of private companies. Public institutions are authorized to control and regulate the activities of these companies. This system is mostly practiced in a few EU countries such as England, Wales and the Czech Republic. 

Among EU countries, only Croatia, Southern Cyprus, Luxembourg and Norway provide water services directly by public administration (Table 1).

Tendency Towards Public-Private Cooperation 

In most EU countries, direct public management, delegated public management and delegated private sector management models are applied in water services management. 

Compared to 20 years ago, there is a general trend in EU member states towards a public-private partnership model in water management. 

With the exception of England and Wales and the Czech Republic, water infrastructure across Europe is publicly owned. In addition to setting and enforcing environmental and health standards, authorities also have the authority and responsibility to control and approve tariffs and control quality. 

2.1.Water Tariffs 

Water tariffs contribute to water cost recovery almost everywhere in Europe. However, in some countries water costs are still covered by the sum of tariffs, transfers and taxes (3Ts). 

The water tariff structure in EU countries varies from country to country and in most cases the tariff consists of a fixed component and a volumetric component. There is a tendency in EU countries to set the 'tariff structure' at the national level, but water charges are still set at the local level. 

In general, water tariffs are set by the water operator and sent for approval to the institutions and bodies to which they are linked (municipality, regional government or regional regulator, national ministry or independent national regulator). In a few countries, water users can also participate in this process. In some EU countries, the final control of water tariffs is carried out by consultative bodies. 

2.2. Quality of Water Services 

In some EU countries, minimum standards of service quality are defined by the competent authorities. If the water service provided fails to meet this standard, water operators are obliged to compensate customers. 

Depending on the country and how services are organized, water users can lodge complaints with various institutions such as water customer service departments, municipalities, consumer boards, national regulators, ombudsmen, arbitration boards and courts. 

In EU countries, the Ministry of Health and its regional/local organizations are usually responsible for monitoring drinking water quality. 

The protection of water resources and the setting of environmental standards are usually the competence and responsibility of the national and regional organizations of Ministries such as the Environment and/or River Basin and the relevant units of national environmental agencies. 

2.3 Population using tap water as drinking water

A survey of 1.8 million people living in EU countries found the following results;

- 80% of respondents reported having access to high quality drinking water where they live

- 60% of respondents stated that they are constantly informed about water quality

- Only 20% of respondents reported having access to good quality drinking water outside their country

This 2015 study reveals that 65% of the respondents use tap water as drinking water. 

3. DOMESTIC WATER USE AND WATER COSTS 

In 2015, a report published by the Joint Technical Research Center of the European Union Institute for Environment and Sustainability shows that there are significant differences in the amount of water used per person per year in EU countries. Of these countries, Cyprus, Greece, Italy, Portugal and Sweden are among the group of countries that use more than 60 m3 of water per capita per year.  Bulgaria, Czech Republic, Hungary, Lithuania, Lithuania, Poland and Slovakia are the countries with the lowest per capita water use of 40 m3/person/year. When both results are considered, it can be concluded that water use is the highest in Southern European countries and the lowest in Eastern European countries in the EU geography. 

Water Charges Are Also Different 

When the data in the report are evaluated in terms of the unit costs of domestic water supply services in countries, it becomes clear that there are significant differences between countries. In this context, when only water supply services are taken into account, Belgium, Germany, Luxembourg and Sweden are the countries with the most expensive water, while when water supply is considered together with wastewater services, France, Malta and the UK are the countries with the most expensive water. 

Among EU countries, the countries with the lowest unit price of domestic water are the Czech Republic, Lithuania, Poland and Romania. However, the interpretation of this situation is not easy due to the different policies of the countries in the provision of these services. It can also be argued that this difference is due to the quality and reliability of water services. The existence of subsidies for water services in some EU countries may also be one of the factors that create this difference. There are also large differences between EU countries in terms of reflecting the full cost of water in the price. For example, in Germany, 99% of the water cost in drinking water supply and 96% in wastewater is reflected in the price and paid directly by the consumer. In Austria these rates are 93% and 78% respectively. In Croatia, 77% of the cost of water supply is reflected in the bill, compared to 45% for wastewater treatment. In Romania, only 38% of the cost of water and wastewater services is recovered from the water user. 

In many EU countries, water charges are priced differently according to water users. Across the EU, the unit price of water supplied to businesses and industry is higher than for domestic water use. However, this ratio varies from country to country and is 3.3 in Albania, 1.6 in Croatia and 2 in Montenegro. 

In recent years, 16 out of 28 EU countries have experienced low and high increases in water prices. The countries with the highest water price increases were Cyprus, Estonia, Hungary, Italy, Malta and Slovakia. Domestic water use also decreased in most EU countries (except Cyprus) during this period.

References:

Yıldız D., Özgüler H..(2021) "EU's WATER MANAGEMENT" Water Policy Association. Report No: 37. Ankara.February 28, 2021.

Environment-European Commission https://environment.ec.europa.eu/news/improved-quality-and-access-drinking-water-all-europeans-2023-01-12_en

LOUIS CHESLAW , KATHERINE LAGRAVE (2019) Where You Can (And Can't) Drink Tap Water in Europe July 18, 2019 available from https://www.cntraveler.com/stories/2016-07-11/where-you-can-and-cant-drink-tap-water-in-europe