Beijing residents may soon have to pay higher water bills. That’s after authorities held a special hearing on two new water pricing plans that would both charge more for water than the current levels. Beijing is a large metropolis but its water supply isn’t sufficient and the water production business is losing money. How the government will decide the matter is a tough call.
Beijing’s huge water demand is straining the suppliers. Officials say that Beijing’s daily water supply reached 298 cubic meters last summer, slightly shy of the city’s maximum 318 cubic meters.
Authorities put out two versions of new price plans. Both are divided into three categories by usage levels and each plan charges accordingly. Some at the hearing favored the change, proposing to widen the price gaps between the different amounts of usage and to charge extra for water waste.
"We should widen the price gaps between the different amounts of water usage," said customer representative Tian Yi. "For basic level users, we should lower their price tag or only lift it moderately. The second tier price could stay where they currently are. For the third and most use tier, which is beyond average household use, I think we should charge much more as a way of punishment."
Another push comes from the business side. One month ago, Beijing Waterworks Group, the city’s main water supplier, released its production costs on its website. The company says it takes 3.19 yuan to produce every ton of water, but the company only takes in 1.7 yuan per ton from household use. And a price increase may not help.
"The new pricing scheme cannot offset the pressure for water production companies, even if the authorities decide to adopt their pricing proposals," said Shi Haibing of Shijingshan Water Supply Company.
Experts propose a price rise to deter the use of large quantities of water on the one hand, and to award families for economic usage on the other hand.
"China needs more water supply, as economy develops and population grows. In addition, water use will rise when people’s livelihood improves. But the overall water resources amounts are fixed, so a pricing mechanism cannot bring a fundamental change to people's water use," said Prof. Shen Dajun at the School of Environmental and Natural Resources, Renmin University. "We’d better raise people’s awareness of saving water."
Opponents say the interests of low-income families should be taken care of because either scheme will push up their water bills.