With a view to the public event "Water prices and charges - two separate worlds?" initiated by the Hessian Ministry of Economics at the beginning of May, Mittelhessische Wasserbetriebe emphasises that the Giessen water supply stands for the highest quality at reasonable charges. Clemens Abel, Operations Manager of Mittelhessische Wasserbetriebe, which has been responsible for Giessen's water supply since the beginning of this year, refers to a nationwide survey of household customers conducted by the Association of Municipal Enterprises (Verband kommunaler Unternehmen e.V.). "More than 90% of consumers are satisfied with the quality and security of supply. Almost three quarters of all respondents rate the fee to be paid as appropriate," explains Abel.
The speakers at the event at the Ministry of Economic Affairs agreed on one key point: water supply is a core task of municipal services of general interest. Organisational issues are in the hands of the towns and municipalities. The decision on whether to use a model with fees or one with prices is the responsibility of the elected representatives in the municipalities. "Which model is chosen is not decisive for the water customer. Both models have effective control mechanisms. The fee paid by the citizens of Giessen for the water supply has remained constant for many years," continued Abel.
The demand for a standardised legal framework cannot be understood by Giessen's previous water supplier, Stadtwerke Giessen AG. "The coexistence of prices and charges exists not only in the water supply sector, but everywhere where local authorities have the freedom to choose between a public and a private legal form. Anybody who interferes with this is interfering with the municipalities' right to self-administration," states SWG board member Manfred Siekmann. A motion tabled by the state of Hesse in the Bundesrat in mid-March 2011, which aimed to establish a standardised regulatory framework for water prices and charges, was rejected.
The statement made by the Chairman of the Monopolies Commission, Prof. Dr Justus Haucap, at the event in Wiesbaden, according to which 42.7% of German water suppliers generate a net loss for the year, was a cause for concern. "The fact that more than a third of suppliers are already failing to cover their costs is evidence of the real challenge facing the water supply industry in the coming years. The industry will have to reorganise," Siekmann estimates. Political monitoring and support for this process is desirable However, simply tightening the price screw or introducing a new legal framework will not help consumers or suppliers in the long term.