📋 Tender Overview
The Ministry of Agriculture and Forestry has circulated the draft government proposal on the reform of the Water Services Act for comments. Comments can be submitted until 30 September 2024, and the bill is expected to be submitted to Parliament in spring 2025. The aim of the reform is to ensure the efficient operation of Finland's water supply and security of supply as investment needs increase.
The legislative reform will ensure municipalities' authority over water supply plants and require municipalities to draw up water supply plans. Institutions must draw up asset management plans and their contingency planning obligations will be specified. Increasing planning secures the operating conditions of water supply and helps to keep water supply fees reasonable and fair.
The legislative amendment proposal implements Orpo's Government Programme, according to which "the operation of water supply will be secured and water resources will remain in national hands". The proposal also implements: Water is OursLink to another site Based on Parliament's decisionLink to another site.
Investments and repair backlog
The Finnish Water Utilities Association estimates that Finland's water supply repair backlog will increase and the total investment need will almost double in the next few years from the current annual level of EUR 400 million. Ensuring high-quality water supply services and curbing the growth of the repair backlog play a key role. Overcoming the repair backlog requires planning.
"A well-functioning and safe water supply is essential for people and society. For this reason, high-quality water supply services must be ensured and the growth of the repair backlog must be brought under control. The correction must be carried out in a controlled manner so that customer fees do not rise too much at once," says Olli-Matti Verta, Director of Water Management at the Ministry of Agriculture and Forestry.
Disposal
The bill requires municipalities to retain control over water supply plants and their ownership of water supply assets. Municipalities would also be provided with a right of pre-emption in the event of a possible sale of currently privately owned water utilities and their assets. Water supply operations in the form of cooperatives will continue to be made possible.
The regulatory solution ensures that public authority remains in the water supply sector and secures municipalities the room for manoeuvre required by constitutional autonomy in organising water services.
Areas of operation of water utilities
In order to ensure the economic operating conditions of the plants, changes will be made to the operating areas of water supply and the obligation to connect properties.
Municipalities will be obliged to regularly update their water supply operating areas. Areas for which centralised water supply is not an appropriate solution shall be excluded from the area of operation. Up-to-date operating areas enable long-term operations and sustainable asset management.
The properties must be connected to the water supply network in areas approved by the municipality. The connection obligation changes in areas outside built-up areas that are within an operating area confirmed by the municipality. The dry toilet property will not need to be connected to the wastewater sewer in the future either. Exemption from the obligation to attach property may be granted if the annexation would become unreasonable for the owner or occupant of the property.
The amendments are expected to enter into force on 1.1.2026. The preparation of the Government proposal has been supported by a working group in which several ministries and stakeholders have been represented.
