Expert Consultation on Tariff Adjustments in the German Water Sector

Abstract

The German Water companies are facing the challenge to stabilize their water prices despite decreasing water consumption and demographic changes accompanied by high levels of fixed costs. The results deriving from the consultation of water experts on water tariffs executed by the BDEW, RWW and HRW has documented that the existing tariffs structures are insufficient to solve the economic dilemma deriving from these conditions. Due to high variable price elements, the structures are insufficient to cover the high fixed costs. Therefore the results provide an evidence for the strong interest and need in tariff changes in Germany. The majority of the participants are planning or driving changes of their water tariffs. The reasons for changes vary in a wide range but most important are a stable volume of sales, decrease of water delivery and the demographic factor. In the next years there will be a considerable number of tariff changes in the German water sector.