Pitfalls for local authorities when charging wastewater fees: New decisions on the scope of the protection of legitimate expectations
- 11/04/2024
- Reading time 2 Minutes
The drafting of wastewater fee schedules regularly contains pitfalls for local authorities. This is particularly true when switching from a contribution-financed to a purely fee-financed system. Now a new ruling by the Cottbus Administrative Court could have far-reaching financial consequences for local authorities.
Particularly with regard to so-called “old connection owners”, the municipalities concerned often face questions regarding the (hypothetical) limitation of the contributions assessment period. The extent to which connection owners enjoy protection of legitimate expectations in this context is the subject of ongoing case law developments.
Cottbus Administrative Court: Statutory bodies must form deductible capital on conversion
Most recently, in its (not legally binding) decision of July 18, 2024, the Cottbus Administrative Court, following on from the German Federal Constitutional Court’s case law from 2015, once again significantly expanded its statements on the protection of the connection owner’s legitimate expectations.
The Cottbus Administrative Court holds the opinion that when switching from a purely contribution-financed to a purely fee-financed scheme, statutory bodies might have to form a corresponding deductible capital for all acquisition and production costs that were originally supposed to be financed by contributions.
Financial impact in the triple-digit million-euro range if the assessment period becomes time-barred
In cases of a (hypothetical) limitation of the contributions assessment period, this can pose a considerable financial challenge for local authorities if the production costs to be covered can no longer be included in the fee calculation for a significant proportion of connection owners.
In some cases, this can lead to financial consequences in the hundreds of millions. Therefore, this recent decision by the Cottbus Administrative Court is particularly relevant when adapting and converting new wastewater fee schedules.
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