The paper provides theoretical background on benchmarking and presents a cost-efficiency focused benchmarking model for the local water provider performing a mandatory public utility of water supply in the municipality from Gorenjska region. The model comprises a ratio model applied on an available sample of clustered Slovenian municipalities. The results of the developed model suggest relative cost-efficiency of the drinking water supply. The water provider for whom the research has been carried out will use the information obtained from our study for strategic decision-making purposes as well as public relations purposes. [ABSTRACT FROM AUTHOR]
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