resource charge for groundwater abstractions which is passed on by utilities to the consumers. There is no such a charge for surface water abstraction, however. Utilities also pay a wastewater discharge fee which depends on the degree of pollution of the discharged treated wastewater. The discharge fee is supposed to provide an incentive to treat water beyond what is legally required (Abwasserabgabengesetz). It accounts for about 3 percent of total sanitation costs. Tariff levels In 2004 water tariffs averaged 1.81 euro per cubic meter including VAT, and sanitation tariffs averaged 2.14 euro per cubic meter. According to NUS consulting water tariffs in Germany (without sanitation) were the highest of 16 mainly OECD countries at the equivalent of US$2.25 per cubic meter, about on par with tariffs in Denmark. However, according to a study commissioned by the German industry association BGW in 2006, the average household water bill was only 82 euro per year in Germany, lower than in France or in England and Wales, but higher than in Italy. The study shows that subsidies are more prevalent in the three comparator countries and service levels are lower. Taking into account these differences, the cost of supplying water at an equalized service level would be 84 euros in Germany, 106 euro in both France and England/Wales, and 74 euro in Italy. The apparent discrepancy between higher unit tariffs and lower bills is due to the lower water consumption in Germany. Water tariffs have remained stable in real terms over the past ten years. Comparison of annual water and sanitation bills per capita in four EU countries Source: Metropolitan Consulting Group: Vergleich europäischer Wasser- und Abwasserpreise, 2006 Concerning sanitation, unequalized tariffs are by far the highest in Germany at 111 euro per year. Equalized costs net of subsidies are, however, highest in England and Wales with 138 euro, followed by France (122 euro), Germany (119 euro) and Italy (85 euro). Metering Metering is widespread in Germany and almost universal for single family homes. However, many apartments do not have their own meter, so that households living in apartments where only the consumption of the entire house is metered have little financial incentive to conserve water. Investments and financing In 2005 investments stood at 7.8 billion euros, including 5.5 billion euros for sanitation and 2.3 billion euros for water supply. Financing is predominantly through debt and ultimately through user fees. Commercial debt is