The Danish competition authority, Konkurrenceankenævnet, has upheld a decision by the Water Sector Supervisory Authority, stating that wastewater companies are restricted to financing projects strictly within their defined responsibilities. This ruling specifically affects Novafos Spildevand Furesø, which sought to extend its financial framework to manage rainwater on private properties, a responsibility it does not hold.

Konkurrenceankenævnet clarified that the payment regulations under the wastewater payment law prohibit the use of funds for purposes outside the wastewater company's jurisdiction. Consequently, wastewater companies cannot allocate resources for transporting, diverting, or treating water that is not their responsibility.

Novafos Spildevand Furesø, like other wastewater companies, is responsible for wastewater supply within existing and planned sewer areas. The company also manages roof and surface water from properties, but only if it is diverted through the company's infrastructure.

The case involved a pilot project where Novafos aimed to finance stormwater valves to redirect roof and surface water from several properties. These valves were intended to prevent water from entering the company's sewer network during heavy rainfall, allowing it to seep into the ground on private land.

Konkurrenceankenævnet determined that this project fell outside the company's responsibilities. The authority emphasized that the company cannot fund solutions that divert roof and surface water from properties in ways other than through its infrastructure, such as infiltration.

Water companies operate as natural monopolies, meaning customers, both businesses and consumers, cannot choose alternative suppliers, resulting in a lack of competitive pressure. To address this, economic regulation has been implemented.

This regulation mandates that companies can only use funds within their designated responsibilities, ensuring that water tariffs remain reasonable. The Water Sector Supervisory Authority sets the financial limits for larger drinking and wastewater companies in Denmark, aiming to enhance efficiency while considering supply security and sustainability.