Principles for Calculating Clean Water Prices: Regulations and Standards
Principles for Calculating Clean Water Prices
The principles for calculating clean water prices are stipulated in Article 51 of Decree 117/2007/ND-CP on the production, supply, and consumption of clean water (amended by Clause 10, Article 1 of Decree 124/2011/ND-CP) as follows:
Clean water prices must accurately and adequately account for reasonable production costs during the production and distribution process (including connection maintenance costs) to ensure the legal rights and interests of water providing units and water customers.
Ensure the right to independently decide the purchase and sale prices of water within the price framework and water price list stipulated by the State.
Clean water prices must ensure that water providing units can maintain and develop, encourage the improvement of service quality, contribute to water conservation, and consider supporting the poor.
Clean water prices should be determined in accordance with the specific characteristics of water sources, water production conditions of each region, locality, and area.
Clean water prices should be determined without discriminating whether the users are domestic or foreign organizations or individuals.
Implement a reasonable price compensation mechanism among customer groups with different water use purposes, gradually reducing and eventually abolishing cross-subsidies between water prices for living purposes and prices for other purposes, contributing to production promotion and increasing the competitiveness of water providing units.
Local governments at all levels, organizations, and individuals involved in water supply must develop programs to combat water loss and waste, establish mechanisms for contracts and rewards, and regulate the maximum permissible water loss and waste limits included in the cost price to encourage effective operation of water providing units.
In cases where the clean water price is decided to be lower than the clean water price plan calculated correctly and fully as regulated, the provincial People’s Committee must annually consider and compensate from the local budget to ensure the legal rights and interests of the water providing units.
The Ministry of Finance shall take the lead in cooperating with the Ministry of Construction, the Ministry of Agriculture and Rural Development to guide the principles and methods for determining clean water consumption prices.
Above is the advisory content of the Editorial Board of Thu Ky Luat on the principles of calculating clean water prices. To understand this more clearly, you should refer to Decree 117/2007/ND-CP.
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