The outsourcing of water services is based on a contract.

A contract which specifies:

• the conditions for operating the services;
• the expected level of performance;
• the remuneration due to the private operating company;
• and the commitments of the operating company.

The local authority contracts out the responsibility for running the water services to a private operating company chosen after the contract has been put out to competitive tender. This process is strictly regulated and operates within a fixed timeframe.

A specific requirement of the outsourcing contract is that the private operating company must report back on its operations on a regular basis to the local authority.

It is regulated locally firstly by the local authority but also by each country's own regulatory authorities. They monitor that the water supply complies with current water quality standards.

The outsourcing of water services by public authorities to a private operating company is just one of the services.

They may contract out other services such as public transport, waste management, energy services and the management of parks and open spaces.

The local authority always retains control of the assets and of water management policy.

It only entrusts the operating of the service to a specialist operating company.

The latter uses its expertise, technology and treatment solutions to improve:

• the efficiency and the working life of the facilities;
• service quality;
• and to ensure a high quality clean water supply.