Full explanation for cost hike needed
Any increase in water prices must be explained to the people, says an article in China Youth Daily. Excerpt:
Some provinces have been mulling raising the price of water for urban residents. Shanghai raised it from 1.84 yuan to 2.8 yuan a ton long ago.
An increase in water price may be necessary, but the government and water suppliers should make public the policies and details of the water price mechanism.
In Shijiazhuang, capital of Hebei province, for example, the price of water for domestic use is 3.63 yuan per cu m, much more than that in Shanghai. There are two reasons for that.
First, Shijiazhuang charges more than the central government's limit for treatment of waste water. According to national regulations, waste-water treatment charges shouldn't exceed 0.8 yuan per cu m. But the city authorities raised the charges by 0.5 yuan in 2002, and again by 0.8 yuan last year. This means Shijiazhuang residents pay 1.3 yuan for treatment of waste water, 0.5 yuan more than what the national regulations allow.
Second, the so-called water resources fees of 0.33 yuan per cu m is a major component of the price. According to the national regulations, this type of fees can only be charged when the water supplied is self-prepared and separated from the unified urban residential water supply system. But Shijiazhuang residents get their water through the common water supply system, making the fees unnecessary.
The reason why many cities want to raise the water prices is that suppliers are suffering huge losses. But the fact is employees working for water supplying enterprises generally have higher incomes than those in other industries. Plus, such enterprises spend absurd amounts to entertain guests and government leaders, which has already invoked public anger.
The central government has clear regulations on water prices, but some departments have done a poor job of releasing them to the public. So urban residents have no choice but to accept higher prices for water without clearly understanding why they are being raised. When some government bodies try to fix water prices, they should ensure that national regulations are followed and public interest taken into consideration.
(China Daily 07/29/2009 page9)
