China to Raise Water PricesChina will reform its water pricing system this year in a bid to gradually raise water prices in a period of serious water shortage and water squandering.The price hikes will cover water supply in urban areas and water supply to industries and water plants by water conservation projects, according to a circular issued Thursday by the State Development Planning Commission (SDPC). The SDPC put forward some guiding principles for the change, saying that China didn't take water as a commodity for a long time, resulting in water supply at below-cost prices and a large number of unprofitable water plants. The costs for public utility should be covered in government budgets at all levels, while the costs for production operation should be established through the pricing system, according to the circular. An SDPC official said that water plants and waste water treatment plants should be responsible for their own profits and losses, adding that management and supervision should be tightened over water prices in rural areas to guarantee fair play. Meanwhile, the SDPC called for more efforts to charge fees on water resources in a move to curb random well drilling and protect and make rational use of water resources. |
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