Da Nang adjusts clean water prices after more than 10 years, still lower than the national average

DNO - Da Nang plans to increase clean water prices from the beginning of 2025 after more than 10 years but still lower than the national average and will support water prices for ethnic minorities, remote communes, and rural areas.

Hoa Lien Water Plant area. Photo: HOANG HIEP

10 years, water production costs increase

Over the past 10 years, water supply infrastructure has also kept pace with the development of Da Nang city.

In 2014, the city's water supply capacity was ^210,000m3 /day. Up to now, the city's water supply capacity is ^460,000m3 /day, the city's water supply network has been expanded more than 1.5 times.

Water quality has improved significantly. Investment in saltwater intrusion prevention and fresh water from An Trach dam has prevented the water from being as salty as before.

In addition, the city has also invested in Hoa Lien Water Plant, contributing to increasing water supply capacity, improving water quality, ensuring long-term clean water security for the people and meeting the city's development.

However, the price of clean water consumption in the city has been applied since 2014 according to Decision No. 06/2014/QD-UBND dated January 27, 2014 of the People's Committee of Da Nang City and has been kept stable for over 10 years.

Currently, many factors in the cost of clean water prices have increased, such as: basic salary has increased 6 times; regional minimum wage increased from 2.4 million VND to 4.16 million VND; electricity price increased by more than 40% compared to 2014; input prices of water treatment chemicals, materials, equipment for maintenance of water supply systems, etc. increased compared to 2014.

In addition, some costs are not included in water prices such as: forest environmental service fees, water exploitation rights fees, and water infrastructure asset rental fees.

Along with that, implementing the city's water supply development plan, in recent years, Da Nang Water Supply Joint Stock Company has invested in increasing the city's water supply capacity from borrowed capital, so fixed asset depreciation costs and interest expenses have increased.

In fact, over the past 10 years, with the fluctuation of water price components, Da Nang Water Supply Joint Stock Company has repeatedly requested the City People's Committee to adjust water prices (in 2017, 2019, 2022, 2023), but to stabilize people's lives, especially in the period from 2020 to 2023, the socio-economic situation has encountered many difficulties due to the impact of Covid-19, the city leaders have considered and have not considered increasing prices as proposed by the unit.

Consider and choose a suitable clean water price, subsidize many subjects

In 2024, Da Nang Water Supply Joint Stock Company has prepared and submitted a clean water price plan, which has been reviewed and appraised by departments, branches, and competent authorities. Based on the opinions of relevant units, the Department of Finance has advised the City People's Committee on the above content.

The issue of adjusting clean water prices has been discussed, considered and basically approved by the city leaders for the retail price of clean water in Da Nang city according to the principle that clean water prices are calculated correctly, taking into account all reasonable and valid production cost factors in the process of exploitation, production, distribution and consumption.

At the same time, it must be suitable for water quality, economic and technical standards, supply and demand relationship of clean water, natural conditions, socio-economic development conditions of Da Nang city, and people's income.

At the same time, harmonizing the legitimate rights and interests of Da Nang Water Supply Joint Stock Company and water users; encouraging customers to use water economically; encouraging water supply units to improve service quality, reduce costs, reduce losses and revenue from clean water, and meet customer needs. Appropriate prices will also contribute to attracting investment in clean water production and distribution activities.

In this clean water retail price plan, the city will support prices for ethnic minorities, remote communes, and rural areas.

Regarding the expected price: Ethnic minority households in Hoa Phu and Hoa Bac communes (Hoa Vang district) using water from ^15m3 /meter/month or less will be exempted from water fees; households in Hoa Phu and Hoa Bac communes and ethnic minorities using more than ^15m3 /meter/month will still keep the old price of 2,000 VND/ ^m3 .

Rural households (except Hoa Phu and Hoa Bac communes); urban households are calculated according to the ladder price increasing gradually according to usage volume and have a price increase of about 13%.

For administrative agencies, public service units, schools, hospitals, medical examination and treatment facilities serving public purposes; organizations and individuals producing materials, organizations and individuals doing business and providing services, the price increase is from 13.48% to 13.97%.

According to the announcement of the Da Nang City Statistics Office, the average CPI in the first 10 months of 2024 increased by 34.68% compared to 2014.

Therefore, this adjustment of retail water prices in Da Nang city is to offset the costs of operating and maintaining water supply for the city.

In general, the increase in clean water prices in the current period has had a small impact on people's social life. For example, for rural households using less than ^10m3 of water per meter per month, the maximum increase is only 4,000 VND per month; for urban households using an average of 10-15m3 ^of water per meter per month, the monthly payment increases by 5,500-8,800 VND per month.

Compared to the national average water price, the expected adjusted price is still lower than the clean water price of some other localities.

NAM TRAN

Source: http://baodanang.vn/kinhte/202412/da-nang-dieu-chinh-gia-nuoc-sach-sau-hon-10-nam-van-thap-hon-mat-bang-chung-ca-nuoc-3997861/