Greece's Water Infrastructure Nears Breaking Point

08:55 9/5/2025 - Πηγή: Dikaiologitika

To help fund the required infrastructure, water pricing is expected to increase in certain areas.

Greece is facing a looming water crisis that could require at least €10 billion in infrastructure investments by 2030, as the country struggles with mounting drought risks and severe inefficiencies in water management. While the national budget lacks the necessary resources, officials are exploring alternative funding sources, including those unrelated to the water sector, to address what they describe as an urgent and unavoidable challenge.

The country operates with more than 280 local water providers, many of which are underperforming. Some lose up to 60% of their water supply due to leaks or mismanagement, with extreme cases reporting nearly all distributed water as "non-revenue"—a term used for water that is produced but never billed due to loss, theft, or unregulated usage.

These inefficiencies not only strain the system but also shift the financial burden onto taxpayers. Authorities have made it clear that this situation is unsustainable and that water utilities must be held accountable for improving performance and transparency.

To help fund the required infrastructure, water pricing is expected to increase in certain areas.

The aim is to embed a portion of the cost of new projects directly into consumer tariffs. This reflects a shift toward a cost-recovery model, where utilities are expected to operate more sustainably and efficiently. Regulatory reforms are already underway to determine what investments will be permitted and how much revenue each utility can collect based on their performance and adherence to investment plans.

Part of the broader strategy includes consolidating the fragmented utility landscape by strengthening two major public providers and encouraging smaller operators to merge voluntarily. This would enhance their capacity to manage resources and infrastructure more effectively.

Emergency projects are also being fast-tracked on Greek islands suffering from extreme water shortages. However, access to public funds for such projects is now contingent on providers demonstrating regulatory compliance and operational competence.

The situation is particularly acute in Attica, the region that includes Athens, where a package of infrastructure projects is expected to be finalized by mid-2025. Authorities hope these efforts will deliver measurable improvements within two years.

Elsewhere, the island of Corfu offers a striking example of the systemic challenges Greece faces.

Despite having the highest annual rainfall in the country, the island continues to experience severe water shortages—largely due to decades of neglect, poor infrastructure maintenance, and weak local governance.

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