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The water price reform in Shandong needs to do this: the "dark supplement" of urban water supply becomes "bright supplement", and the residents' water price is not lower than the cost

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【Summary】:
On the 7th, a reporter from the Economic Herald learned from a press conference held by the Provincial Government Information Office that Shandong will reform the current subsidy system for urban and rural water supply and water charges, and change the "dark supplement" to "bright supplement"; gradually adjust the residential water price to Below cost level.

On the 7th, a reporter from the Economic Herald learned from a press conference held by the Provincial Government Information Office that Shandong will reform the current subsidy system for urban and rural water supply and water charges, and change the "dark supplement" to "bright supplement"; gradually adjust the residential water price to Below cost level.

Recently, the Shandong Provincial Department of Water Resources and the Provincial Development and Reform Commission jointly issued the "Implementation Plan for the Implementation of the National Water Conservation Action in Shandong Province". Strengthen supervision and inspection of key areas and high water-consuming industries, and strictly investigate accountability for water wastage. Give full play to the role of the government and the market, actively cultivate water-saving market mechanisms, encourage and guide social capital to participate in the construction and operation of water-saving projects, actively promote water-saving products and technologies, promote the marketization of water-saving technological achievements, and stimulate the whole society Endogenous power in water.

Liu Zhonghui, Secretary of the Party Leadership Group and Director of the Water Resources Department of Shandong Province, and Director of the South-to-North Water Transfer Bureau of Shandong Province, introduced that Shandong will scientifically determine the water supply price for external water transfers such as Yangtze River and Yellow River water. First, you can also pilot in a district or county, accumulate experience, and gradually cover all multi-source water supply areas. By 2025, the comprehensive water price reform at the city and county levels will be basically completed. In terms of reforming urban water supply prices, we must first reform the current urban and rural water supply financial subsidy system, collect water charges based on approved water supply prices, gradually eliminate cross-subsidies, and change public finance from “dark” to “clear” for water users The second is to establish a mechanism for urban water supply price formation and dynamic adjustment that fully reflects the cost of water supply and stimulates the quality of water supply, and gradually adjust the price of residential water to no less than the cost level. The establishment of a reasonable price formation mechanism will promote good results in water conservation and utilization.

By further exploring water price reforms and establishing and perfecting a water price formation mechanism that reflects market supply and demand, resource scarcity, ecological environment damage costs, and restoration benefits, Liu Zhonghui believes that this move can force water conservation and water ecological protection and promote optimal allocation of water resources. He said that by comprehensively implementing the "Implementation Plan for Comprehensive Reform of Agricultural Water Prices in Shandong Province", and actively implementing measures such as confirmation of water rights, bonuses and penalties, financial subsidies, etc., to achieve the purpose of promoting agricultural water conservation, emission reduction, increase production and efficiency. Strive to establish by 2025 an agricultural water price formation mechanism that reasonably reflects the cost of agricultural water supply and is conducive to water conservation and the sound operation of farmland water conservancy projects.

Liu Zhonghui said that in 2018, Shandong Province ’s water consumption per 10,000 yuan GDP was 27.8 cubic meters, water consumption per 10,000 yuan of industrial added value was 11.3 cubic meters, and the effective utilization coefficient of farmland irrigation water was 0.6406; the national GDP water consumption per 10,000 yuan was 66.8 cubic meters and 10,000 yuan industrial The value-added water consumption is 41.3 cubic meters, and the effective utilization coefficient of farmland irrigation water is 0.554. The comparison shows that the main indicators of water use efficiency in Shandong Province are better than the national average. However, compared with the world's advanced level, Shandong still has a gap. There are still irrational industrial structures, fragile water ecological environment, inadequate agricultural water-saving engineering system, large proportion of high water-consuming industries, low unconventional water utilization rate, Outstanding problems such as inadequate water incentives and restraint mechanisms, and weak water conservation awareness throughout society.

Cao Jinping, deputy director of the Shandong Provincial Water Resources Department, said that in the next step, Shandong Province will take water resources as the most rigid constraint, establish a pragmatic water quota system, and strengthen the control of total water use and intensity at the provincial, city, and county levels. Take the main water saving indicators as one of the important indicators for comprehensive assessment of the economic and social development of each city.

Source: Economic Herald

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