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Water cost matters

(China Daily)
Updated: 2009-08-08 08:23

A number of cities have already raised water prices in the first half of this year and some others are preparing to do so by holding public hearings. All have given the same reason: that prices are too low to cover the cost of managing supply and sewage treatment. The National Development and Reform Commission (NDRC) published a document last week to support the price hike, citing the same reason.

With China's per capita water resources only one fourth of the world average and two third of its cities suffering from water shortage, the significance of saving on water can never be overestimated. Actually, water prices have been raised several times in the past for the same reason.

But, to the disappointment of the public, they have never been told of the cost of supply and sewage treatment. Almost all cities are complaining that their water works are running in deficit for years, which has been cited as a justification for the price hike.

Even the NDRC document said prices for water supply, wastewater treatment and management of water sources are too low to encourage frugal use.

Why do the local governments and the NDRC always use vague expressions when it comes to the cost of water? It is not a State secret. Or, is it that the NDRC and the local governments do not know the cost of urban water supply and sewage treatment? If they don't, how can they be convincing about the reasons for the raise?

Water supply in urban areas is a public utility, which should at least partially be supported by municipal finance. There is no information on how much money taxpayers paid in taxes goes to water works every year as subsidy; nor is there a detailed breakdown of the cost of providing water to people.

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An online survey shows that nearly 90 percent are opposed to the hike. Among other things, a lack of transparency about the water cost is a major reason for their opposition.

Without knowledge about the cost of water and the money that a local government gives to its water works as subsidy, there is no way for residents to know where the amount raised by the hikes will go. The fact that sewage treatment has not seen much improvement - and nor has the situation for the use of the recycled water - in most cities in spite of repeated price hikes on both counts justifies people's doubts about the current motivation.

The lives of hundreds of millions of urban residents, the low-income ones in particular, will be affected by the hike. The local government should have been quite clear about the water cost and even have had a detailed plan ready for the use of the money thus raised. A convincing case, we believe, will make most residents accept the increase.