CHINA INTRODUCES TIERED PRICING TO COMBAT WATER SHORTAGE

01/06/2014

Last week, China called for all cities to start charging tiered prices for household water by the end of 2015. In a statement released on Friday, the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development said cities should institute a three rate structure, whereby homes that use more water would pay more. Eighty percent of the country’s residential population would fall in the first and lowest tier, where prices would remain flat. Second tier prices would go up by at least 50 percent, while third tier prices would double the second tier rate. The ministries called for local governments to take into account low income families when implementing the new system, potentially increasing subsidies for certain households. The plan seeks to combat water shortages in a country with 20 percent of the world’s population and only seven percent of its freshwater. For the full story, see http://www.shanghaidaily.com/business/China-to-impose-tiered-water-pricing-system-on-urban-residents/shdaily.shtml and http://timesofindia.indiatimes.com/home/environment/developmental-issues/China-introduces-tiered-pricing-to-save-water/articleshow/28345181.cms.