Maryland 9 5 times the price of water on the cost of diverting water loss rate passed on to consumers
 
Core Tip: July 20, residents of Lanzhou City, Gansu Province water prices will hold formal public hearings, it is already 9 years of the 5th price. Lanzhou, the provincial capital of the northwest 5 per capita income of urban residents in the penultimate position of the city, the second largest water.

Recently the price of water in some cities涨声一片questioned by water loss rate
China’s economy Aug 17 Weekly report at 14:40 on July 20, residents of Lanzhou City, Gansu Province water prices will hold formal public hearings. Price Bureau of Gansu Province said: The Maryland residents in the price of water is the number of final adjustments to the hearing to hear opinions from all sides, and then revised and improved to be identified.

Earlier, in December 2005, the Price Bureau of Lanzhou City Lanzhou City residents will use the price from 0.9 yuan / ton adjusted 1.45 yuan / ton.

In fact, at that time, plus a ton of water required to pay 0.3 yuan sewage treatment fee, Lanzhou public water minimum price of 1.75 yuan / ton. This year from April 1, Lanzhou City, urban sewage treatment costs per ton increase from 0.3 yuan to 0.5 yuan, the current minimum standard of living members of the public water Lanzhou price was 1.95 yuan / ton.

“China Economic Weekly” reporter has learned that, Lanzhou, the provincial capital of the northwest 5 per capita income of urban residents in the penultimate position of the city, the second largest water.

Increase the cost of water increases as the main reason?

At the hearing, Price Bureau of Gansu Province to the media to explain the increase in water prices for three reasons: the expansion of water supply enterprises in the water supply, improve water quality, and strengthen the areas of water supply based on the construction of increased investment; the government pricing policy, as well as electricity , coal, pharmaceutical and other raw materials prices, increased maintenance costs, etc.; In addition, the existing residents of Lanzhou City water price is lower than the average level of the province is not conducive to water conservation.

Prior to this, Gansu Price Bureau announced two price adjustment programs: the price of water to residents from the current 1.45 yuan per cubic meter to 1.75 yuan, respectively, on, 1.85 million, increases the rate of 27.59 percent and 20.69 percent, the average annual population increase teams were 16.22 yuan and 12.17 yuan. Prices, the residents of water expenditure in percentage of disposable income were 0.61% and 0.64%, still below the internationally accepted standards in favor of saving 2%.

In prices and Veolia Maryland (hereinafter referred to as “Veolia Maryland”) set out the rationale for the price, “cost” as keywords. In that case, the “cost” of what exactly is it?

Responsible for urban water supply Lanzhou Lanzhou Lanzhou Veolia Water Supply Group and the former French Veolia Water (Yellow) Investment Co., Ltd. (hereinafter referred to as “Veolia”) joint venture in 2007, was 30 years of water supply franchise. Veolia owns 45% of its shares. Water was founded in Maryland in 1955, staff of nearly 3,000 people, was overwhelmed in a typical state-owned water supply enterprises. Veolia in France is the world’s leading water utility, currently in China has 20 operating projects.

Between the two “weak strong joint,” once aroused widespread controversy. Veolia 1.71 billion in order to obtain the high premium of 45% of Lanzhou Water stake in rival several times in the tender. At that time, has been questioned, “In addition to raising the price of water, Lanzhou Veolia can rely on to recover the investment?”

Since the French Veolia has entered Lanzhou, Lanzhou has not yet raised the price of water. July 20 hearing of the Maryland water heralded the arrival of a new round of price adjustment.

As early as September 2008, Lanzhou City, Pricing Pricing transferred to the province at the Lanzhou City Construction “in Lanzhou on the price of water to adjust the request of the report of the investigation.” Maryland reported that Veolia since 2007, for a variety of raw material prices and labor costs rose sharply, with the result that the cost of water supply enterprises 1.95 yuan per cubic meter, with the current price of water upside down, causing serious loss of business, operational difficulties, the requirements will be Lanzhou City, the price of water adjusted to 2.16 yuan per cubic meter.

Enterprise’s financial statements in accordance with, Lanzhou Veolia actual sale in 2008 of about 210 million cubic meters of water, 288 million sale of water revenue, the sale of water cost 346 million yuan, 57,912,100 yuan loss, a loss of 0.276 yuan per cubic meter. Veolia Maryland declared the water supply unit costs 1.95 yuan per cubic meter.

July 16, Gansu Province, Gansu Province Price Bureau announced the cost of industrial and agricultural products Investigation Team on the Maryland Veolia going to report the cost of water supply. Audited, the actual loss of business in 2008 amounted to 54.8459 million yuan, 0.261 yuan per cubic meter loss. Therefore, Lanzhou Veolia unit pricing audit cost 1.72 yuan per cubic meter. Among them, the 2008 actual unit cost of water supply 1.633 yuan per cubic meter, in 2009 new units of water cost 0.086 yuan per cubic meter.

“China Economic Weekly” that the entire controversy or on the water, the Maryland companies Veolia and the cost of the budget deficit has become the focus of the largest.

What is the reasons for this loss? Is a loss of regulatory, management, loss, or the loss of social responsibility? People can see, the only loss under the premise of a further round of price increases.

“At the hearing, we ask the Maryland Veolia enterprises to produce statements for the past two years, but in the end, we see nothing.” Lanzhou Qingzhou City Housing associations told the Secretary-General, “China Economic Weekly.”

Prices at the hearing opposed the Bank of Maryland on behalf of flute Musical Instrument Co. has been prescribed noted that Veolia in Maryland at the end of the provision of materials, there has been a very eye-catching words “Maryland Veolia Water provides water supply costs related to raw data authenticity by the company. ”

“Why is the authenticity of their own by the company responsible? Data on the real you?” Was out to challenge, “Corporate annual depreciation charges are more than 5000 million light itself can not afford both depreciation charges, water rates of indebtedness of so many , but also how to obtain Maryland 30-year franchise of the water supply to control a number of provincial and municipal water supply industry? ”

Why the cost of doing business onto consumers?

Dramatic is that this hearing, only 14 representatives of two opposition to the price of water rose, the majority of representatives on the understanding that the price of water rose.

Agreed to price hikes of consumer representatives, Lanzhou University, Assistant Dean, School of HE Wen-sheng said: “price is not unreasonable, but the price of water pricing mechanism is not satisfactory. Are all worried about the price of water from the public cost Details of the knowledge and the price may be unreasonable to shift the cost of water supply enterprises of suspicion. ”

“If we can clarify the prices reasonable grounds, even if the yuan rose 1 per tonne is also possible.” Wen-sheng of the prices that businesses Otherwise, “price is not the means for enterprises, should be the achievement of internal management, the stability of water prices, the price adjustment frequency should be appropriate. ”

The representative of the majority of consumers believe that companies themselves are too high personnel costs and other factors should not become part of the price of water so that ordinary people to bear. Xigu District Hongxing Street welfare of community residents and other consumers on behalf of Edwin Chen is very concerned about the cost of water supply, it was suggested that a modest price increase can be understood, water loss rate is based on what? This loss is the number of their own organization and overstaffed, Higher productivity is not caused by its own mismanagement of this?

The price of water should be how to calculate the cost? Rose 0.3 yuan or 0.4 yuan on the basis of what? Delegates proposed, should be entrusted to an independent third party agencies for the cost of going to the price of water, and water supply enterprises to review the financial position of and accounting, to the public.

“Our joint venture has been the past few years has been losing money.” This price increase for Lanzhou, Lanzhou, chairman of Sun Xiaoxia Veolia explains this: In the past Lanzhou total industrial water supply is 70%, since 1998 a significant decline in water consumption enterprises; as a result of electricity, coal, oil and various raw material prices rising personnel costs, combined with large-scale replacement of aging pipelines and equipment, increased cost of water supply enterprises, resulting in serious loss of business.

At the hearing, the representative of Maryland said Veolia, Veolia in Maryland at the time of the establishment, Lanzhou City Construction Committee has asked the enterprises to improve water quality, and speed up the Gaoping areas, areas of peace and tranquility of water supply projects to address the remote areas , the new urban water supply problem.

To this end, the Maryland Veolia has invested or involved in water supply expansion project in Yuzhong a series of projects, has invested 12 million yuan of funds, the establishment of urban water quality testing point network 81 to detect the quality of water supplies from time to time.

Lanzhou City and will begin a gradual transformation of family forms, according to the need for transformation of the cost estimates per 2800 yuan, the city’s residential customers the cost of transformation of family forms of 960 million yuan. Significant is the fact, but the construction of basic inputs, whether consumers and businesses should be borne?

Vincent Law Firm on behalf of Gansu Zhang Xiao Yu would not object to price hikes, but that’s up 0.3 yuan or a little big. “Solution enterprises can not bear alone the public, the Government should increase investment and should not be a loss of business investment will be borne by the public. Water projects are public utilities, but also investment projects, the Government’s fiscal expenditure should be dominant, not the implementation of ‘I pay you treat’ model. ”

How to adjust the price of water go from here

Reporter noted that the participants on behalf of almost all consumers in their respective places of residence area doing a survey on the basis of the findings, the majority of household water price increases to hold opposing views.

“In the hearing, I solicited a number of consumers, especially older persons, it was generally worried about the price of water adjustment, will have a ripple effect on other industries.” Room QINGZHOU told “China Economic Weekly” reporter.

Housing Green stressed that the price adjustment can be gradually put in place the best, the establishment of a corresponding price system of the people’s livelihood, the use of incremental steps, or by residents of Lanzhou City, the proportion of annual income, the price adjustment does not exceed 0.06%. Taking into account the practical difficulties faced by enterprises, the hearing, he repeatedly said, “The price of a competent authority of the Government of the two price adjustment programs, I can only but to accept the first one (up 0.3 per million) program.”.

The price of water is a major event related to the livelihood of the people, far-reaching, the impact of price adjustment is complex, and in the degree and pace of adjustment must be careful. Delegates said that the price adjustment should give more consideration to the lowest earners and social affordability. Office of the streets张掖路community representatives LIU Yan-ping Cao said, according to a hearing before the community more than 2400 households in the survey, 95% of the residents do not think we should increase, 3% of the people expressing their 2% of people think that does not matter.

Several representatives suggested step-by-step implementation of the price of water, some in excess of water increases further. In addition, the Government should step up construction of water infrastructure investment, do not let the people money to bogus sales water bill for the construction of water supply enterprises.

Gansu Province, the cost of industrial and agricultural products related Investigation Team said, if the adjustment is approved, the provincial department in charge of the price of water will once again conduct a comprehensive review of the financial and consider from next year on a regular basis to establish the cost of water going to system, the cost of going to further increase the transparency of water.