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China to impose tiered water pricing system on urban residents
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China plans to apply progressive water tariffs on all urban residents by the end of 2015, with top rates at least tripling from current levels, the latest move aimed at encouraging conservation of resources.
Local authorities must work out their respective systems that should include at least three tiers, the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development said in a joint statement released today.
Consumption in the first tier, for which prices will remain flat, should be enough to cover 80 percent of local households’ use, the ministries said. Prices should at least go up by 50 percent for volume in the second tier and at least triple for consumption in third tier.
The price difference should be further enlarged in regions short of water, the statement said.
A poll on Sina.com by noon showed about 65 percent of the 4,400 participants thought the progressive plan is “unreasonable” and 30 percent considered it as “reasonable.” The rest 5 percent said they “don’t care.”
The ministries required local governments to disclose local water costs and hold public hearings while introducing the new systems.
China is pursuing reforms of pricing on water, fuel, power and natural gas to better reflect scarcity of resources and encourage conservation.
Shanghai last summer adopted a progressive water tariff system that, as estimated by authorities, would translate into an average increase of 30 percent in prices but meanwhile leave 85 percent of local households unaffected.
That was the first time the city raised water tariffs since November 2010. It came amid mounting losses for water utilities as they continued to invest heavily in improving supplies and quality.
The new national plan called on local governments to also consider the affordability of low-income families when introducing new water tariff systems. For example, local authorities should increase subsidies or provide them with more volume under the basic first tier.
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