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In the 21st century, in the area of water utility services, primarily the economic and consumer requirements have to be complied with, but attention must also be paid to the requirements of sustainable development, the special Union regulations and finance.

In this system of relationships, the basic principles and concepts that the service provider must keep in sight are the following:

  • The water utility service is a natural monopoly, market mechanisms may only be realised in part;
  • It is a public service that is to be given special treatment, and so the EU-level requirements must be observed (territorial coverage, continuity, good quality, technical and economic reliability, transparency, access for all consumer groups, consideration of consumer interests);
  • The responsibility of supply belongs to the local authorities as declared by law;
  • Separate specialist field regulations apply to the activity (health, environmental protection, economic, technical, safety, etc.);
  • Further expectations deriving from EU water affairs policy (Water Framework Directive): the polluter pays principle, prices reflecting true costs, proportional cost-bearing, cost-effective solutions for developments.
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Water utility services in Hungary

The present status of water utility services:

  • Mains drinking water supply is universal;
  • Public utility sewage services available to 65%;
  • Service prices are authority set (the local government is the price-setter);
  • 400 service provider organisations, 33% of the market is operated with the involvement of private partners;
  • In the sector, by 2015, € 6 billion in developments will be required in order to comprehensively establish the supply to conform with environmental protection guidelines.