Public water supply and sanitation in Germany is universal and of good quality. Some salient features of the sector compared to other developed countries are its very low per capita water use, the high share of advanced wastewater treatment and very low distribution losses. Responsibility for water supply and sanitation provision lies with municipalities, which are regulated by the states. Professional associations and utility associations play an important role in the sector. As in other EU countries, most of the standards applicable to the sector are set in Brussels (see EU water policy). Recent developments include a trend to create commercial public utilities under private law and an effort to modernize the sector, including through more systematic benchmarking.
Access to water and sanitation
Urban (88% of the population) Rural (12% of the population) Total Water Broad definition 100% 100% 100% House connections 100% 97% 100% Sanitation Broad definition 100% 100% 100%Sewerage 94 93% 93% Source: Joint Monitoring Program WHO/UNICEF(JMP/2006). Data for water and sanitation based on Health for All database, WHO Regional Office for Europe (1990).
Access to safe water and adequate sanitation in Germany is universal. More than 98 percent of users are connected to a public water supply system. The remainder is served by private wells. 93 percent of users are connected to sewers. The remainder is connected to various types of on-site sanitation systems.
Water use About 80 percent of public water use is accounted for by residential and small commercial users. The remainder is accounted for by industries supplied from public water systems (14 percent) and other users (6 percent).Branchenbild, p. 13
Residential and small commercial water use is the second lowest among 14 European countriesBranchenbild, p. 12 and only a fraction of what it is in North America. Despite forecasts about increasing per capita water use, use actually declined from 145 liter/capita/day in 1990 to only 121 liter/capita/day in 2010.
Low water consumption has had some negative operational, health and even environmental impacts. On the operational side, sewers have to be flushed occasionally with injected drinking water in order to prevent stagnation of raw sewage. On the health side, there are concerns about potable water contamination due to low flows. On the environmental side, in some cities such as Berlin water tables are rising and cause damage to the foundations of buildings because of decreased pumping of groundwater by utilities.German Wikipedia entry on Trinkwasserverbrauch and Statistisches Bundesamt
Water resources and public water supply
Water is not scarce in Germany, except for occasional localized droughts. Public water utilities extract only 3 percent of total renewable water resources in Germany, or 5.4 billion cubic metres out of 182 billion cubic metres annually.Branchenbild, p. 8
The sources of public water supply are as follows:
65% from groundwater 9% from springs 5% from bank filtration, i.e. from wells close to rivers and lakes, drawing essentially surface water 20% from surface waterBranchenbild, p. 11
Service quality
Water supply in Germany is continuous, at good pressure, and drinking water quality is excellent, as evidenced by the universal compliance with the EU drinking water directive. Wastewater treatment is universal. 94 percent of municipal wastewater is treated according to the highest EU standards including nutrient elimination, a much higher percentage than in France (36 percent) or in England and Wales (39 percent).Branchenbild p. 26
Consumer perceptions
According to a 2007 national survey for the business association BDEW (BDEW customer barometer) 92% of customers were satisfied or very satisfied with the quality of their drinking water. 82% were satisfied or very satisfied with the service provided by their drinking water provider. 79% were satisfied or very satisfied with the service provided by their wastewater utility. The survey also showed that customers significantly overestimate the price of water and wastewater services compared to the actual price.Branchenbild 2008, p. 27-34
Human resources
It is estimated that the total number of those directly employed in German water and sanitation utilities is far more than 100,000.Branchenbild 2008, p. 10
Infrastructure
The length of the drinking water network in Germany is estimated to be more than 500,000 km. The length of the sewer network in 2004 was estimated by the Federal Statistical Office to be 515,000 km, divided as follows:
238,000 km of combined sewers 171,000 km of sanitary sewers 106,000 km of stormwater sewers
There were 9,994 wastewater treatment plants in Germany in 2004.Branchenbild 2008, p. 37-39
Responsibility
Service provision Public water supply and sanitation in Germany are responsibilities of municipalities, of which there were more than 12,000 in 2008. Smaller municipalities often associate in municipal associations to provide water and/or sanitation services. Municipalities or municipal associations in turn can delegate these responsibilities to municipal companies, private companies or public-private partnerships.
There are about 6,400 public water service providers and about 6,900 sanitation service providers in Germany.Branchenbild 2008, p.12-13 With a few exceptions, water and sanitation services are typically provided by different entities in the same locality, with sanitation bills being collected by the water utility on behalf of the entity in charge of sanitation.
Water supply
Among the 1,266 larger water service providers about 15 percent are municipal utilities under public law (Eigenbetriebe); 16 percent are inter-municipal utilities (Zweckverbände); 63 percent are utilities under private or mixed law either under private, public or mixed ownership.;ATT/BGW/DBVW/DVWG/DWA/VKU: Branchenbild der deutschen Wasserwirtschaft 2005, p. 14 and 6 percent are water and land associations (Wasser- und Bodenverbände). Only 3.5 percent of service providers were entirely privately owned (no figures are available on companies with mixed ownership, an increasingly prevalent form of ownership).
Sanitation
Unlike public water supply, sanitation is considered a sovereign core responsibility (hoheitliche Kernaufgabe) of municipalities in Germany. This implies that, unlike water supply, it is exempt from VAT and corporate taxes. It also implies that companies under private law cannot directly provide sanitation services. The great majority of municipalities thus provide sanitation directly through a municipal sanitation department (Regiebetrieb). Less than 10 percent of the 6,000 sanitation providers are utilities under public law, and none are utilities under private law. However, municipalities or municipal utilities can sign operating contracts (Betreiberverträge) with private companies. Out of the 900 largest sanitation service providers, about 10 percent have signed such contracts for sewerage services and 12 percent for wastewater treatment services.
Examples of large water and sanitation service providers The largest privately owned public water company is Gelsenwasser AG, although 92,9% of it are still owned by various municipalities, which is a multi-utility company (water, sanitation and natural gas distribution) serving 3.2 million inhabitants in North Rhine-Westphalia, under concession agreements with 39 municipalities, and many other localities throughout Germany and internationally.
An example of a publicly owned large multi-utility (water, electricity generation and distribution, natural gas distribution) is the Mainova AG in Frankfurt.Mainova AG
The Berliner Wasserbetriebe, an Institution under Public Law (Anstalt des öffentlichen Rechts), is the largest communal water service provider after its remunicipalisation in 2013, serving 3.5 million people with water and 3.9 million people with sanitation services.Berliner Wasserbetriebe
Policy and regulation
Responsibility for policy setting in public water supply and sanitation in Germany is shared between the EU, the federal government and state governments (Länder). (For more details on the role of the Länder and municipalities see States of Germany) The EU sets the framework legislation for water quality and water resources management (see EU water policy). The organization of public water supply and sanitation, however, remains a prerogative of EU member states. The German states (Länder) play a key role in the sector by setting, among other things, the legal framework for tariff approvals. Municipalities, legally entrusted with service provision, play an indirect role in influencing policy positions related to water and sanitation through their influential municipal associations (the Deutsche Städtetag representing the largest cities and towns and the Deutscher Städte- und Gemeindebund representing smaller cities and towns).
There are no autonomous regulatory agencies for water and sanitation in Germany at the state or federal level. The recently created federal regulatory agency for network industries (Federal Network Agency) covers telecommunications, postal services, electricity, gas and rail. It does not cover water supply and sanitation, since it is a responsibility of the states. Water and sanitation tariffs are approved through different procedures in each state, usually by a department in the state Ministry of Economy after a review of the tariff increase request by an independent auditor. In city-states (Berlin, Hamburg, Bremen) this means that the Minister (called Senator) of Economy both requests the tariff increase in his capacity as chairman of the board of the utility and also approves it, which constitutes a conflict of interest. In the case of some private utilities, tariffs are set by a mutually agreed arbitrator based on the professional opinion of an auditor.
Drinking water quality is monitored by the public health departments of municipalities and counties (Landkreise). Environmental monitoring is largely based on self-monitoring, which has proven to be reliable, and occasional samples by environmental Ministries of the states.
Business associations
Industry associations and professional associations also play an important role in self-regulating the water and sanitation sector (verbandliche Selbstverwaltung). In early 2007 there were six associations in the sector. They include two industry associations, the Association of Electricity and Water Utilities BDEW and the VKU (association of municipal utilities); two professional associations, the DWA (professional association for water and sanitation), BVGW (professional association for gas and water); and two associations specialized on sub-sectors, the ATT (working group of dam operators providing drinking water) and DBVW (association of land and water associations). In particular the two professional associations play an important role assisting in the development of technical norms and, more recently, in performance benchmarking.
Recent developments: debate on liberalization and modernization
A study commissioned in 2000 by the Ministry of Economy suggested to liberalize the German water sector, allowing competition similar to the telecommunications and electricity sectors. BMWi/Evers et al. 2000 The proposal met with harsh criticism, including from the Federal Environment Agency (UBA) and the associations of municipalities, which alleged that liberalization could entail setbacks for the protection of health and the environment. UBA The liberalization proposal was not further pursued. However, public-private partnerships continued to become more widespread and the trend towards the creation of private law water utilities (commercialization) continued.