Public water supply and sanitation in Denmark is characterized by universal access and generally good service quality.

It is estimated that 89% of households are connected to the sewer network and 11% are served by on-site sanitation systems such as septic tanks.

[4] According to the European Environment and Health Committee the national microbial failure rate (measured against E. coli) among large water supply systems is generally zero.

Very occasionally, large water supply plants have microbiological failures during a limited period.

The quality of the drinking water is checked at the waterworks, in the distribution network and at consumers' taps.

The local authorities can issue extraction permits for small abstractions and they also operate a solid system of water quality regulation.

The Danish water supply is highly decentralized, with large and small waterworks situated all over the country.

It includes also process benchmarking, the setting of service goals and the development of a default chart of accounts.

[9] In 2003 the Danish government undertook a "service check" which estimated a potential for efficiency improvements worth DK 1.3 billion (US$ 273m) annually.

Indeed, between 2002 and 2006 utilities participating in the benchmarking project were able to achieve annual savings of DK 450 million (US$94.5m) in operations and maintenance without any reduction of service quality or harm to the environment.

This is about the same level as in the Netherlands, but much higher than in Scotland, England and Wales or Australia, according to figures by the British water regulator OFWAT quoted by DANVA.

[10] Danish legislation requires full cost recovery for both water supply and sanitation (break-even principle).

Nevertheless, a household's average expenditures for tap water and wastewater accounted for only about 0.13% of its total income.

This share has remained constant, mainly because water consumption declined while tariffs increased.