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Water companies should explain better the breakdown of their tariffs

Water companies should explain better the breakdown of their tariffs, and they should substantiate their costs better. For example, they need to indicate what part of the costs they incurred can be attributed to drinking water, and what part to other activities. They also need to demonstrate that the costs that they incur are necessary costs. These are some of the recommendations that the Netherlands Authority for Consumers and Markets (ACM) has given to the Human Environment and Transport Inspectorate (ILT).

Based on ACM’s investigation, among other things, ILT has decided that, if water companies fail to solve these deficiencies by the time the 2018 tariffs are set, they will risk being imposed an official instruction. In its investigation, ACM looked at the ten water companies in the Netherlands: Brabant Water, Dunea, Evides, Waterbedrijf Groningen, Oasen, PWN Waterleidingbedrijf Noord-Holland, Vitens, Stichting Waternet Amsterdam, Waterleidingmaatschappij Drenthe and Waterleiding Maatschappij Limburg.