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Water Price Variation Analyses & Policy Suggestions on Typical Water Intake Areas in the South-North Water Transfer Project, China

Author(s): Xiaoli Jia; Chunhui Li; Junxiang Jia; Meng Xu

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Keywords: The South-North Water Transfer Project (SNWTP); Water intake areas; Water price

Abstract: The first phase of the South-North Water Transfer Project (SNWTP) would be fulfilled soon; however, the water price system has not been formulated yet. Therefore, the work on water pricing is urgently needed. Based on the typical water intake areas of SNWTP (Tianjin City, Shijiazhuang City and Zhengzhou City), the water supply allocation and current water price policy are clarified, and the mechanism problems existing in the current water pricing are analyzed, at last, the policy suggestions in accordance with the local water supply variations are put forward. Thus policy supports on rational water supply allocation for the water intake areas after SNWTP are provided. The major problems existing for water intake areas are: relatively low water resource fee standard which could not give full play to the water supply variations; irrational water price structures and water price differences in various categories; prices for water supply & sewage treatment are insufficient to cover the costs and etc. The major policy proposals are: rational allocation of multi-water supplies in water intake areas; diversion water price and local water price should be consistent, and implement the Two-Part Water Tariff and Stairs Water Price, and raise appropriately the water price to ensure the smooth transition of water price and water supply structure in water intake areas.

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Year: 2013

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