At the start of 2025, several municipalities adjusted their water prices. But what drives these changes, and how are the costs of drinking and wastewater determined?
The price of water is composed of several factors. In an interview with our colleagues from RTL Télé, Georges Kraus, director of the Esch-sur-Sûre Dam Water Syndicate (SEBES), explained how drinking water pricing is structured from the point of view of a syndicate such as SEBES. According to Kraus, the cost breakdown includes depreciation (approximately 45%), withholding tax (around 5%), staff costs (25%), and operational expenses (15%). Depreciation refers to the write-offs related to a building SEBES constructed. In 2017, the syndicate started building a new plant, which became operational in 2023 and from that year onwards, the write-offs have factored into the water price set by SEBES. According to Kraus, this led to an increase of over 40 cents per cubic metre.
Like other utilities, water prices are influenced by broader economic trends. For instance, rising electricity costs have had a significant impact. Kraus noted, however, that the situation has “settled down” recently, with prices dropping to below 20 cents per cubic metre. This marks a notable shift from 2023, when the price stood at 41 cents per cubic metre.
Since 2021, the price of drinking water has nearly doubled, reaching €2 per cubic metre in 2024. Wastewater, on the other hand, currently costs €2.30 per cubic metre, though Kraus warned that this figure is likely to rise in the coming years due to ongoing infrastructure projects. Municipalities also factor in their own infrastructure costs when setting water and wastewater prices.
Roland Schaack of the Intercommunal Syndicate for Wastewater Treatment in the North (SIDEN) highlighted the disparities between rural and urban municipalities. “Some municipalities require up to 50 structures for wastewater management, while others need only one or two,” Schaack explained. These differences significantly affect costs, as each structure must be financed.
Like Kraus, Schaack also mentioned electricity as a key factor driving price increases. He pointed to the Covid-19 pandemic and the Ukraine war as major contributors to soaring electricity prices. In rural areas, for example, electricity costs surged six-fold within a single year, further impacting water pricing.
According to Schaack, municipalities with numerous small villages–requiring extensive connecting lines for water and wastewater management–are likely to see significant price increases in the future. He emphasised that these areas already face prices far above the national average. While the national average is €4.50 per cubic metre, some municipalities are charging as much as €12 per cubic metre.
Water prices vary widely across municipalities due to differing infrastructure needs and operational costs. Schaack explained that the law requires municipalities to set prices that cover all associated expenses. This means that households in areas with higher infrastructure demands will inevitably pay more than those in municipalities with simpler systems.
