In order to bring clarity and to simplify the understanding of the governance of water services in Europe, the report provides a snapshot of the current situation in the 29 EurEau member countries and illustrates the diversity of management models, organisational structures, tasks and responsibilities of the players involved at the different levels of governance (EU, national, regional or local). Water services’ organisation in Italy, page 34-35, by Utilitalia.
Four management models may be distinguished across Europe:
- Direct public management: under this system, the responsible public entity is entirely in charge of service provision and their management. In the past, this system was predominant in Europe.
- Delegated public management: under this system, a management entity is appointed by the responsible public entity to execute the management tasks. Management entities usually remain the ownership of the public sector, although in the EU, in some cases, there is the possibility of a minor private shareholding.
- Delegated private management: under this system the responsible public entity appoints a private company to manage tasks, on the basis of a time-bound contract in the form of lease or concession contract. In the countries where this type of management is common, municipalities subcontract their duties to private companies. The ownership of the infrastructure remains in the hands of public authorities.
- Direct private management: under this system all management tasks, responsibilities and ownership of water utilities are placed in the hands of private operators, while public entities limit their activities to control and regulation. This system is in place in very few European countries (England, Wales, and the Czech Republic).
In the majority of countries there is a mix of the first three models (direct public management, delegated public management and delegated private management), with a general trend, compared to 20 years ago, towards public and private delegated management.
