Economic Policy News
- China to raise water prices to encourage conservation, efficiency
Date: 11-Dec-2006 Sources: (Xinhua Online)
The Chinese government is to raise water prices across the board to promote conservation and efficiency in a reform of the country's water price system during the 11th Five-Year Plan period (2006-2010).
The Ministry of Water Resources said domestic water prices would be tiered with higher fees for heavy consumers to encourage conservation.
Progressive payment systems for over-quota water use for farming and industry will be implemented nationwide.
The scope of water use fees would be enlarged and fees would be publicized.
The government's 2005 water resources report, the first of its kind to be published, showed an average of 169 cubic meters of water was consumed for every 10,000 yuan in industrial added value. The government aims to cut the figure by 30 percent by 2010.
Li Yunsheng, an expert of the Chinese Academy for Environmental Planning of the State Environmental Protection Administration, said inadequate supply facilities, under-priced water and poor awareness of conservation were major problems.
Li said waste water treatment fees were expected to rise to 0.8yuan (0.1 U.S. dollars) per ton, compared to 0.1 yuan per ton at present.
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