What are regulations on the method of calculating the tap water price in Vietnam?

What are regulations on the method of calculating the tap water price in Vietnam? - image from internet

Pursuant to Clause 1 Article 9 of the Circular 44/2021/TT-BTC stipulating the method of calculating the tap water retail price in Vietnam:

a) Tap water retail price (exclusive of VAT) that varies according to consumer groups and tiers are calculated according to the following formula:

G_Bli = G_Blbq x H_i

Where:

- G_Bli: Retail price specific to customer groups (VND/m³).

- G_Blbq: Average retail price of tap water (VND/m³) which is calculated according to the formula:

G_Blbq = GT + P

Where:

GT: Cost paid for production of 01 m³ of tap water (VND/m³) calculated under the provisions of Article 7 herein;

P: Limited profit per 01 m³ of tap water (VND/m³) calculated under the provisions of Article 8 herein.

- H_i: Coefficient used as a basis for calculation of the maximum price compared to the average tap water retail price; the coefficient used for varying tap water prices according to consumer groups. Below is the H_i data table:

Pricing coefficients specific to tiers or customer groups shall be subject to approval granted by provincial People's Committees in the tap water price plans in conformity with the tap water pricing principles prescribed in Article 2 herein, and consumption ratios between tiers or consumer groups.

b) Tap water retail prices shall vary among consumer groups, including residential households billed at the tiered rates in the way that those billed for the lower consumption volume of tap water are charged at the lower price and vice versa. Whereas the flat retail rates are applied to other consumer groups, each of them shall be charged at different price levels. In certain particular circumstances, the pricing rules are as follows:

- The lump-sum billing rate shall be charged for 4m³ of tap water consumed each month by a person living in residential households where meters used for measuring their water consumption are not in place; rural areas or residential households consuming water contained in the common water tanks placed at concentrated locations (not through water management and distribution agencies); for 16m³ of tap water consumed each month (as shown at the SH2 row above) by a residential household living in localities where the former is unworkable.

- If the landlord is the buyer registering to buy tap water from a water supplier for the tenants who are students or workers renting the house for residential purposes, the number of tenants which is equal to or less than 4 persons shall be registered as a household for calculation of the tap water price per household according to the tiered pricing method applied to tap water consumers.

- In localities where the supply exceeds the demand, actions such as the decrease in the number of tiers; the increase in the volume level at each tier; or the flat rate charged for consumption of tap water at all tiers, may be taken with the aim of encouraging consumers to use tap water; enabling water suppliers to maintain, develop their business and improve their productivity.

- In localities where the prescribed coefficient used for averaging the tap water price is not satisfactory, that coefficient may be adjusted to exceed the maximum coefficient shown at SH1 row to ensure that the coefficient used for averaging the tap water retail price equals 1.

- In case where a water supplier supplies water from a source of water to a consumer for multiple uses, the price of tap water for non-domestic purposes (not for meal, drinking or personal hygiene purposes) which is the same as the price of tap water used for domestic purposes shall be applied to that consumer.

Best regards!