Proposal to reduce clean water consumption prices in urban areas of many districts

80% of urban residents have access to clean water

According to the report at the conference, currently in the province, 18/21 urban areas have clean water supply systems with a total designed capacity of 110,000m³/ day and night, managed and operated by 6 water supply units; providing water to an average of about 80% of urban residents.

Mr. Tran Viet Dung - Deputy Director of the Department of Finance discussed and answered the opinions of delegates on the plan for clean water consumption prices of districts in the province. Photo: Dinh Nguyet

Of which, the largest proportion is Nghe An Water Supply Joint Stock Company, which is managing 13 water supply systems, with a total designed capacity of 96,000 m³/ day and night (accounting for 87.27% of total capacity). The remaining units include: Cua Lo Water Supply Joint Stock Company, Thai Hoa Water Supply Joint Stock Company, Dien Chau Water Supply Joint Stock Company, Quynh Luu Water Supply Joint Stock Company and Yen Thanh District Clean Water Project Management Board, which are managing the remaining 5 water supply systems, with a total capacity of 14,000m³/ day and night (accounting for 12.73% of total capacity).

The current consumption price of products produced and supplied by the above-mentioned units is implemented according to the provisions in Point b, Article 1 of Decision No. 37/2016/QD-UBND dated May 13, 2016; with the lowest level being 6,100 VND/m³and the highest is 15,700 VND/m³.

However, from 2018 onwards, apart from Nghe An Water Supply Joint Stock Company developing a plan for urban clean water prices and having the price approved by the Provincial People's Committee, the remaining units have not developed a specific price plan but mainly implemented according to the price of Nghe An Water Supply Joint Stock Company.

Overview of the working session. Photo: Dinh Nguyet

Proposal to reduce clean water prices in many urban areas, up to 18%

In order to adjust clean water prices to suit the reality in localities, while ensuring the principle of adjusting prices in accordance with the factors constituting production costs, the Department of Finance proposes to regulate the consumption prices of clean water products in the province of the following companies: Cua Lo Water Supply Joint Stock Company, Thai Hoa Water Supply Joint Stock Company, Dien Chau Water Supply Joint Stock Company, Quynh Luu Water Supply Joint Stock Company and Yen Thanh District Clean Water Project Management Board.

Accordingly, the plan for domestic water consumption prices for urban households mostly remains the same or decreases (the highest decrease is 18%). Only Quynh Luu Water Supply Company increases the expected domestic water consumption price, the highest increase is 2% and Cua Lo Water Supply Joint Stock Company increases 1% for households using over 30m³/ month. The proposed price of clean water for material production activities and for business and service activities is reduced (the highest reduction is 34%).

At the conference, most representatives of departments, branches and companies agreed with the clean water consumption price plan proposed by the Department of Finance. Only Cua Lo Water Supply Joint Stock Company proposed to keep the old price.

Operating the water supply system at the Vinh Suburban Water Supply Enterprise. Photo courtesy

Regarding the regulation on the price of domestic water products in rural areas in the province, currently in the province there are 28 rural water supply works (self-flowing and pumped) managed by 24 units that are collecting money. The Department of Finance proposed to apply the price of hygienic domestic water for 5 self-flowing water supply works in Tuong Duong district and 1 work in Con Cuong district at 2,500 VND/m³ (VAT included), this price does not include depreciation costs.

For 23 water pumping projects in Tan Ky, Quy Hop, Yen Thanh, Quynh Luu, Nghi Loc, Dien Chau, Hung Nguyen districts, the Department of Finance proposed to apply a price of 6,500 VND - 7,000 VND/m³.

Comrade Dinh Viet Hong - Vice Chairman of the Provincial People's Committee concluded the working session. Photo: Dinh Nguyet

After listening to the opinions of representatives of relevant departments, localities, and local water supply companies, Mr. Dinh Viet Hong - Vice Chairman of the Provincial People's Committee requested the Department of Finance to coordinate with Cua Lo Water Supply Joint Stock Company to reconcile and unify the price plan for each subject and after the water supply plant in Cua Lo town is completed, the price will be adjusted according to the new plan.

At the same time, the Department of Finance is assigned to receive opinions from departments, branches and units to complete documents, ensure regulations, and submit to the Provincial People's Committee for consideration and decision.

Regarding the proposal to regulate water prices for all self-flowing and pumped water supply works operating in the province, the Department of Finance will continue to research and propose in the coming time./.