(China Daily)
Updated: 2007-12-13 07:42

A rise in water charges would seem acceptable if the authorities considered two important factors, says an article in Beijing Youth Daily. The following is an excerpt:

Ma Kai, minister of the National Development and Reform Commission, reportedly said at a recent meeting that the commission might raise water charges in cities next year.

The increase was expected in many cities. Nanjing, Jiangsu Province, raised the charge from 1.9 yuan ($0.3) to 2.3 yuan per ton, and Hangzhou, Zhejiang Province, raised it from 1.65 yuan to 1.92 yuan per ton.

As a water shortage looms, further price hikes are inevitable. But there are two conditions the authorities must consider before approving the hikes.

First, the authorities must check the real costs of the water suppliers. The suppliers are monopoly players in the market, so the public must depend on the administration to get the real costs.

The suppliers could be running inefficient operations, offering higher-than-reasonable wages to its employees or making decisions that increase their costs.

The authorities should compare their calculations with that of the suppliers before they consider the feasibility of further raising charges. After all, water is a public commodity and suppliers should not be pursuing lucrative returns.

Second, the authorities must make it clear that a certain proportion of the charges be used to protect water resources.

One of the most frequently used arguments for raising water charges is that resources need more protection. We do not object to this, as long as the increase in charges is not going to the suppliers.

If it is going toward protection of water resources, the public will support it.

(China Daily 12/13/2007 page10)