Very Stable Level of Expenditure on Water and Wastewater
There is no subsidization of water services in Denmark. Costs are comprised of the price paid by the consumers. A household's expenditure on water services has been at a very stable level for years.
Lars FischerWater companies are 100 % financed through tariffs, and all activities, investments and operating costs are paid by the customers.
However, to prevent socio-economic waste and stimulate development, innovation and climate-friendly energy production, water companies are permitted, in addition to their water and wastewater activities, to sell services, residues and energy with a certain profit, provided that such sale is closely linked to their drinking water or wastewater activities.
The average Danish household's water cost for drinking water and wastewater is 808.21 €, which is equivalent to 1.41% of their annual living expenses.
Water in Figures 2022Very Stable Level of Expenditure on Water and Wastewater
The household's water cost for drinking water and wastewater for 2021 for an average Danish family of 2.12 people, with an average water consumption of 105 litres per person per day, corresponding to a consumption of 81.34 m3 per year, stood at € 808.21.
Almost 30% of the Water Price is VAT and Taxes
The average water price can be split into the part charged by the drinking water company and the part charged by the wastewater company, plus VAT and other taxes, such as tax on piped (tap) water and wastewater tax.
Out of the total water price of € 9.85 per m3, 18.0 % go to the drinking water company, 52.4 % to the wastewater company, while 29.6 % go to the State in the form of VAT and other taxes.
Different Households Pay Different Unit Prices
The average price of water in Denmark in 2021, based on an average household size of 2.12 people with an average household consumption of 105 litres per person per day, stood at € 9.85 per m3.
Some companies levy a fixed annual base charge on water and wastewater, while others only charge for the amount of water consumed, which results in considerable variation when calculating the price per one m3 of water consumed.
Therefore, the average price per m3 of water for a household with small consumption, for example a single person, was somewhat higher, namely € 11.06 per m3 for an assumed consumption of 50 m3. The average price per m3 for a family with three children, based on an assumed annual consumption of 170 m3, is somewhat lower, namely € 8.84 per m3.
DANVA
DANVA, the Danish Water and Wastewater Association, is an industry organisation for drinking water companies and wastewater companies in Denmark. DANVA is a nonprofit association, funded by its members and through commercial activities.
