Transparency needed in water price adjustment

(China Daily)
Updated: 2009-11-09 11:24

Recent media reports suggest Beijing will soon hold a public hearing on water price adjustments. But as news of a price hike will not come as a surprise to most, given that Beijing is short of water resources and water treatment costs are on the rise, the most popular question on the lips of many remains as to how much the increase will actually be.

I don't want to speculate on why the price will be raised or by how much because local authorities must have their reasons, but I do hope the policy deliberation process is made more transparent to the public so there is no doubt cast on the decision.

It is not enough to say treatment costs for drinking water have increased because the public will question whether there is room for cost reductions.

Questions regarding whether water supply companies have tried hard enough to cut costs will arise, as well as if there are outstanding management problems or redundant personnel dragging down efficiency.

Only when these questions are addressed can the public be convinced of accuracy of the price hike.

Authorities also need to consider what price is affordable to everyone, regardless of social status and financial strength.

Government subsidies are necessary to keep the price at a low level, or even make it free, in order to protect the basic rights of the public.

Beijing has launched a citywide campaign to protect drinking water by installing water saving devices in public venues and 80 percent of its residential communities.

The water consumption volume per 10,000 yuan of GDP has fallen from 137 cu m in 2001 to 33.5 cu m in 2008. However, this does not imply limits have been reached in the saving of water, nor does it guarantee all companies and government departments have taken part.

Keeping the price of water as low as possible will definitely not lower the amount being wasted by the general public, but the government must not use this as a reason to stray from searching for a system that can do both.

The plan for now, apparently, is for the government to lower the quota system of water next year for all social units including companies and government offices. In my opinion, the same rules should apply to families so that they can help establish a water-saving society.

Chen Jiaxing

(The article was first published in Beijing Times on Nov 8)