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About the Danish Water Regulatory Authority

The Danish Water Regulatory Authority is the regulator for the water sector in Denmark. This means that we enforce the Danish Water Sector Act, which regulates the financial framework for water and waste water companies, to ensure that Danes get cheaper water.  

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As a regulator, we work for the water and waste water companies to become more efficient all the time and supply drinking water and handle waste water at stable and low prices, while ensuring continued high quality and reliability of supply.

The water sector is characterised by natural monopolies. This means that businesses and households do not have the option of freely choosing between different suppliers, as they do with other products in a free, well-functioning market. Monopolies can lead to prices that are higher than necessary. Financial regulation is designed to strengthen the incentive for companies to streamline, innovate and invest cost-effectively – for the benefit of the budgets of all households and businesses.

As regulator, we regulate water companies by using benchmarking and by setting annual revenue limits and efficiency requirements. In addition, we prepare guides, analyses and professional articles, work on method and model development and actively contribute to the development of supply policy in Denmark.

Our most important tasks include:

  • Establishing the annual financial framework for the companies
  • Calculating individual efficiency requirements through benchmarking for companies with a charged water volume of more than 800,000 cubic metres
  • Conducting annual monitoring of company compliance with the financial framework
  • Handling complaints related to the financial frameworks of the companies
  • Supporting the companies' work to comply with the Danish Water Sector Act with guidance, advice etc.
  • Handling and supervising municipal reports in accordance with the Danish Stop Act and related regulations