Sector companies are currently investing around 10 billion euros per year in maintaining and adapting their networks and facilities. However, the study (available in German only) illustrates that this amount has to increase to an average 40 billion euros per year. Approximately 65% of this amount is required for wastewater disposal and 35% for drinking water supply. An estimated additional investment of 10% to 15% of the total is necessary for adapting faster to climate change.
On paper, the required investment per capita amounts to 10,000 euros in the next 20 years. These costs are, however, distributed across the useful life of the facilities and networks and mainly borne by the infrastructure users. Against this background, the German Association of Local Public Utilities (VKU), which has been advised by the BBH group, is calling for water and wastewater to be included in the special fund for infrastructure at federal/state/municipal level. Furthermore, targeted support instruments and cost-cutting measures are required. Such measures include a lower VAT rate for drinking water, reinvesting water withdrawal and sewage charges in infrastructure, establishing producer responsibility in the area of drinking water supply and speeding up planning and permit granting procedures.
Thomas Straßer, public auditor, tax advisor and partner at BBH, emphasises: “The findings of our study illustrate the need for substantial investments in the water infrastructure. Only by timely and appropriate financial means can we safeguard security of supply and quality in the long term.”
Daniel Schiebold, lawyer, specialist lawyer for administrative law and partner at BBH, adds: “Apart from the financial dimension, it is decisive to create the legal framework conditions for efficiently implementing the required measures. This includes, in particular, speeding up planning and permit granting procedures.”
With more than 700 employees, 7,000 clients and 7 offices, the BBH group is a leading provider of advisory services to energy and infrastructure companies. Energy and supply companies (particularly public utilities, municipalities and local authorities), industrial companies and international groups are among its core clients. The BBH group assists these and many other companies and organisations from all business sectors with legal, business and strategic advice.
Contact:
Prof. Dr. Ines Zenke
Rechtsanwältin/Lawyer, Partner
Phone +49 (0)30 611 28 40-179
ines.zenke@bbh-online.de
Visit the BBH group online at www.die-bbh-gruppe.de, www.bbh-blog.de, x.com/BBH_online or instagram.com/die_bbh_gruppe.