Guangzhou's pricing administration announced Saturday that the city would increase its water rate for residents from 0.9 yuan (US$0.1) per cubic meter to 1.32 yuan per cubic meter.

The monthly water rate will be charged using a new scale: For a household that uses no more than 22 cubic meters each month, the rate will be 1.32 yuan per cubic meter; for more than 22 cubic meters, but less than 30 cubic meters, it will be 1.98 yuan per cubic meter; and for more than 30 cubic meters, the rate will be 2.64 yuan per cubic meter.

According to the pricing administration, the new policy will take effect when each household has a water meter. The bureau estimated that the new policy would cost each resident 2.98 yuan more per month and 34.68 yuan more each year.

The policy will provide a special rate for low-income families. If a low-income household uses less than 22 cubic meters of water per month, the rate will be 0.9 yuan per cubic meter. But if it uses more than that amount, the water rate would be the same as for other residents.

So far, Guangzhou still has more than 1.16 million households that do not have their own water meters. The city's water company has promised to install a water meter for each household within five years.

According to a survey on 1,445 people conducted by Guangzhou, only 17.6 percent of the city's residents support the water rate increase. But according to the pricing authorities, shortage of resources has become a bottleneck for Guangzhou's social and economic development. The new policy will help save water and increase citizens' awareness about the shortage.

(Shenzhen Daily December 26, 2005)