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Shanghai's water price to rise by at least 23%

Starting August 1, Shanghai residents will have to pay at least 23 percent more for use of tap water as local authoroties today annnounced a new progressive tariff system for water.

The system - like that used by power utilities - will charge higher rates for excessive use.

According to the Shanghai Development and Reform Commission, the system will charge 3.45 yuan for the first 220 cubic meters of water in a household in a year. That would cover 85 percent of city households based on last year's data.

The price will rise to 4.83 yuan for use in excess of 220 cubic meters and to 5.83 yuan beyond 300 cubic meters.

Currently, residents pay 2.8 yuan (46 US cents) per cubic meter of tap water.

The commission said water tariffs will be set based on costs.

Shanghai's water suppliers reported a net loss of 268 million yuan last year, or 0.15 yuan per cubic meter of water, while drainage companies posted a loss of 426 million yuan, or 0.36 yuan per cubic meter, according to audited data.


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