**7. References**


http://www.pub.gov.sg/NEWater\_files/download/view.pdf

**13** 

*Germany* 

**Analysis of the Current German** 

Mark Oelmann1 and Christian Growitsch²

**with Efficiency Analysis Techniques** 

*1University of Applied Science Ruhr West in Muelheim an der Ruhr;* 

 *²Institute of Energy Economics at the University of Cologne* 

**Benchmarking Approach and Its Extension** 

The analysis of the current German Benchmarking approach and an extension with efficiency analysis techniques seems to be a very specific topic at first sight. However, at second sight it turns out that this question is relevant for many European countries. The reason is that many countries share a similar structure of their water sector which then

A first similarity in most European countries is that local governments are the responsible bodies for providing water services. They can decide if they want to perform the service themselves or if they contract it out to private companies. Figure 1 shows that they predominantly transfer the task to publicly owned companies. It is worth noting that Figure 1 displays the percentage of *population served* by either a public, a private or a mixed operator. If it would show the number of companies then the percentage of private companies in relation to all would diminish drastically. The same holds true if the term "privatization" would be specified more clearly. In Germany, for example, it ought to be distinguished if a company is only formally privatized, which means that the shareholders

A second observation for the various European countries is that the water sector is very fragmented.1 EUREAU (2009, p. 94) is counting 600,000 jobs for more than 70,000 water services operators. On average a water service provider would employ less than 10 people.

At the same time, tariffs are now supposed to cover all costs.2 In addition, immense investments will be needed in many European countries to fulfill the various European Directives.3 Both developments will lead to significantly higher water prices in the future. It

1 The Netherlands, England/Wales or Scotland are examples of countries where rather large companies

2 This cost recovery principle is introduced in Art. 9 of the Water Framework Directive 2000/60/EC.

remain public, or if a company is really materially privatised.

The structure is thus mainly publicly organized and rather fragmented.

3 A good description of the various important European directives is available under http://ec.europa.eu/environment/water/water-dangersub/76\_464.htmDirectives.

**1. Introduction** 

prevail.

implies similar challenges.



http://www.mde.state.md.us/assets/document/WatRuse07-7%20Gelot.pdf El Paso Water Utilities (2007).
