A draft law has been put up for public consultation by the Minister of Environment and Energy, Theodoros Skylakakis, aiming to modernize the regulatory framework for Municipal Water and Sewerage Companies (DEYA) and municipal services related to water supply, sewerage, and stormwater management.

Minister Theodoros Skylakakis stated:
“This draft law seeks to restructure the organization of Municipal Water and Sewerage Companies, ultimately aiming for their financial recovery. To achieve this, we are providing significant financial incentives to DEYAs that proceed with mergers, covering 70% of their overdue debts to electricity providers using revenues from the special account of the Energy Transition Fund. With the certification of their services, along with voluntary mergers, municipalities—either independently or through the Municipal Enterprises they have established—will be able to provide much better water supply and sewerage services to their citizens.”

Key Provisions of the Draft Law

As announced by the Ministry of Environment and Energy (YPEN), the draft law titled “Modernization of the Water and Sewerage Services Framework and Urgent Energy and Urban Planning Regulations” includes the following provisions:

• Voluntary mergers of existing Municipal Water and Sewerage Companies (DEYA) as well as municipal water supply and sewerage services.
• To utilize the expertise of Greece’s two major water providers, the following measures are proposed:
  • Mandatory absorption of all water and sewerage providers in Attica and the municipalities of Kea, Karystos, and Kymi-Aliveri by EYDAP. However, municipalities such as Kythera, Hydra, Spetses, Troizinia-Methana, Kea, Karystos, and Kymi-Aliveri can opt out within six months via a municipal council decision.
  • Mandatory absorption of water and sewerage providers in the Thessaloniki regional unit by EYATH, unless a DEYA opts out by merging voluntarily with a neighboring DEYA.
  • Voluntary absorption of geographically neighboring water providers or those with an integrated water supply system by EYDAP – EYATH.
• Significant financial incentives for merging existing DEYAs, covering 70% of overdue debts to electricity providers (as of October 31, 2024) through the Energy Transition Fund.
• Regulatory updates to address legislative gaps regarding all water service providers, introducing uniform rules and explicit obligations, such as:
  • Pricing policies
  • Protection of infrastructure from seizures
  • Network operation regulations
  • Expropriation procedures
  • Mandatory water supply security plans
• Strengthening the role of RAAEY, which will certify the management competence of water service providers by issuing management adequacy certificates based on:
  • Financial sustainability and self-funded infrastructure maintenance
  • Collection of current and overdue debts
  • Planning and construction of co-funded infrastructure
  • Operation of water, sewerage, and stormwater services, including infrastructure design and construction
• Mandatory development of a water supply security plan by 2025, which will be a prerequisite for RAAEY certification.
• Facilitating emergency water shortage response projects by EYDAP S.A. or EYATH S.A. in case of drought-related emergencies.
• Addressing legal ambiguities regarding EYDAP S.A., EYATH S.A., and the EYDAP Fixed Assets Company, including:
  • Jurisdiction of Administrative Courts in public contract disputes
  • Procedures for assigning operation and maintenance of Athens’ External Water Supply System
  • Streamlining hiring for key administrative positions
• Establishment of the “Volvi-Lagadas Irrigation Company S.A.,” co-owned by the municipalities of Volvi and Lagadas and EYATH S.A., to improve irrigation services in Thessaloniki’s Volvi and Lagadas regions.
• Expansion of responsibilities for the Thessaly Water Management Organization (ODYTH S.A.), founded under Law 5106/2024, to coordinate all irrigation in Thessaly.