The new Water Sector Act will come into force on 1 March 2016. What does the new Act imply? There are many major and minor amendments and, below, we will introduce you to ten of them.

TEN THINGS TO KNOW ....

1. The Water Sector Act is not new, but it has been amended - along with a number of other acts.

2. The purpose of the Act - section 1 - has been amended with the effect that the purpose also includes effectiveness, low stable prices and innovation.

3. In the future, the water companies will be subject to revenue framework instead of annual price caps. Companies below a debited water volume of 800,000 m3 will be subject to a control framework based on less strict rules. Cf. sections 6 and 6a. The new Executive Order is expected around 1 March - we will follow up on this.

4. It is possible to set up a private dispute resolution committee where both consumers and traders can complain about the water companies' delivery terms.

5. Section 16 (3) contains an explicit provision on collection of guarantee commission on market terms.

6. Section 19 joins and adjusts sub-sections 1 and 2 - this is relevant when referring to the other sub-sections as these will change number. Section 16 also abolishes the rules on internal supervision.

7. A duty to carry out annual dialogue meetings between the municipality and the supply company is inserted in section 14 b of the Water Supply Act  and section 32 c of the Environmental Protection Act.

8. Authority to issue orders and an explicit provision ensuring the supply obligation will be inserted in section 44 (5) of the Water Supply Act and section 32 a of the Environmental Protection Act.

9. The law will change name to "the Act on municipal assignment of water companies".

10. The amendments will come into force on 1 March 2016, however, the rules on for instance performance-oriented benchmarking and setting up of private dispute resolution committees will come into force in connection with the Executive Order.

contacts

Rikke Søgaard Berth

Partner

Line Markert

Partner

Rene Frisdahl Jensen

Senior Attorney