What are the relevant policies of the water industry in 2020

China's water price system has gone through four stages: public welfare-based free water supply, policy-based low-cost water supply, water fee calculation and collection based on cost, and management based on commodity prices. On the whole, the water price reform presents the characteristics of rising prices, continuous simplification of price classification, and gradual implementation of stepped water prices.

 

At present, in 36 large and medium-sized cities across the country, the average domestic water price is 2.7 yuan/ton, of which 58% of the cities have water prices of 2-3 yuan/ton, and 33% of cities have water prices greater than 3 yuan/ton. According to foreign water price management experience, a reasonable proportion of urban residents' water expenditure to disposable income is 2-3%, while water expenditure in China accounts for no more than 1% of urban per capita disposable income. It is more appropriate for Chinese urban residents to spend 2% to 3% of average household income on domestic water. China's urban water price is far from reaching the upper limit of the residents' tolerance proposed by the World Bank, and there is a certain distance from the appropriate proportion of household income proposed by relevant departments. Therefore, water prices still have a lot of room to rise.

 

The long-term inversion of water prices and costs has made the profitability of enterprises in the industry generally poor. On the other hand, low water prices have caused residents to lack water-saving awareness and serious waste of resources. The "Outline of the Twelfth Five-Year Plan for China's National Economic and Social Development" once again proposes to continue to promote the reform of water prices and improve water resources fees, water conservancy project water supply prices and urban water supply price policies.

 

Price changes

 

From the perspective of the pricing model, China's water price is still determined by the way that the local price bureaus hold price hearings, but the price of tap water is gradually realizing market-oriented adjustments. With the continuous development of the economy and the continuous increase in water supply costs, the price of tap water in China has also been rising, from 1.06 yuan/ton in 2001 to 2.71 yuan/ton in 2011, with an average annual increase of 8.14%; From 1.48 yuan/ton in 2001 to 3.75 yuan/ton in 2011, the average annual increase was 8.06%. In order to reflect the scarcity of water resources and give full play to the regulating role of water prices, the state is gradually implementing a progressive increase system for water use in industries and services, and a tiered water price system is adopted for residential water.

 

On February 14, 2012, Guangzhou City announced the price adjustment plan for tap water. The residential water price was raised from 1.3 yuan/ton to 2.02 yuan/ton. At the same time, 22 tons was used as the red line to implement step water prices. This is the first domestic first-tier city to raise water prices since Changsha, Xi'an and other cities raised water prices in 2010.

 

Before Guangzhou announced the water price increase plan, nearly 20 provinces and cities including Beijing, Chongqing, Jiangsu and Shandong have successively disclosed their water price reform plans. In addition to the commonly mentioned increase in water prices and the implementation of tiered water prices, the plan also involves related supporting reform measures. For example, in 2009, Beijing formulated a three-year water price adjustment plan, and 2012 was the last year of the plan. Currently, Beijing’s non-residential water users are already experimenting with tiered water prices; Shandong Province has made it clear that in the future it will implement a progressive increase in water resources fee system, and proposes It is planned to double for 10% of the plan, double for 10%-30% of the plan, and triple for the portion exceeding 30%; the water price reform plan of Jiangsu Province’s "Twelfth Five-Year Plan" proposes to accelerate the promotion of tiered water prices for residents in the future. The adjustment of water resources fees and the reform of urban water supply prices are included in the water price reform process. According to China Water Network, the increase in water prices in Guangzhou will kick off the collective adjustment of water prices in the future.

 

On February 16, 2012, the State Council issued the "Opinions on Implementing the Strict Water Resources Management System", strictly implementing total water consumption control, and by 2030, the national total water consumption will be controlled within 700 billion cubic meters. To this end, the "Opinions" put forward the implementation of the most stringent water resources management system, strict water resource collection fees and water intake approval management system, which will guide the direction of accelerating the pace of water price reform in various places, and the gradual increase of water prices in the future will be a foregone conclusion.

 

Analysis of the development prospects and current status of the smart water industry in 2020

 

According to the "Thirteenth Five-Year Plan for Water Conservancy Reform and Development", the urban and rural water supply direction plans to increase the national water supply capacity by 27 billion cubic meters, which is about 74 million cubic meters per day. The increase in the scale of water supply requires speeding up the construction and transformation of urban and rural water supply pipe networks, reducing the leakage rate of public water supply pipe networks; speeding up the construction of key water source projects, implementing a number of major water diversion projects; strengthening rainwater and seawater utilization; strengthening urban emergency and backup Water source construction, prefecture-level and above cities with a single source of water supply should basically complete the construction of standby water sources or emergency water sources by the end of 2020. This series of engineering construction has brought a trillion-level urban water supply investment market.

 

According to data from the National Bureau of Statistics, as of the end of December 2017, the number of enterprises above designated size in my country's water industry reached 1,776, the number of loss-making enterprises reached 369, and the proportion of enterprises above designated size reached 20.77%. The total assets of water affairs enterprises above designated size reached 1,257.98 billion yuan, an increase of 7.4% over the same period in 2016.

 

01

 

Per capita water resources are low

 

The total amount of water resources in my country is 2.8 trillion cubic meters, and the per capita water resources are 2,220 cubic meters. It is predicted that when the population increases to 1.5 billion in 2030, the per capita water resources will drop to 1,660 cubic meters. According to internationally recognized standards, my country is a water stressed country with a per capita water resource of less than 1,700 cubic meters. Relevant experts issued a warning that starting from 2010, my country will enter a period of severe water shortage, and by 2030, all available water resources in my country may be "exhausted".

 

02

 

Serious water waste

 

Industrial production water efficiency is low, leading to high costs and poor output value. The GDP output of a single square of water is 1/3 of the world average. Most cities across the country have serious industrial water waste, with an average reuse rate of only 30-40%. At present, the national urban domestic sewage centralized treatment rate averages 63.42%, which cannot be compared with advanced countries.

 

03

 

The water pollution situation is severe

 

Due to the extensive development model that only paid attention to the speed of development and ignored the environmental impact in the early stage of reform and opening up, water resources were seriously polluted: the rivers flowing through cities were generally polluted, and the three rivers (Liaohe, Haihe, Huaihe) and the three lakes (Taihu, Dianchi and Chaohu Lake) are severely polluted, and cyanobacteria often break out. Among the 100 state-controlled provincial boundaries of the seven major water systems, the proportions of sections with water quality of Ⅰ-Ⅲ, Ⅳ-Ⅴ and worse than Ⅴ are 36%, 40% and 24% . In addition, about 64% of urban groundwater is severely polluted, and 33% of urban groundwater is slightly polluted.