An outdated billing scheme may force the state-run water authority to raise prices next year.
"Compared with other Asian countries such as Japan and Singapore, Taiwan's water prices are very low, resulting in low returns over the last few years," said Lin Wen-yuan (
The commission oversees the Taiwan Water Supply Corp (
While the company made a profit of NT$48 million last year, its debt burden of NT$50 billion doesn't leave much capital for further upgrades and expansion.
Water prices outside Taipei are NT$9.45 per metered unit, and the rate hasn't been modified for at least 10 years," Lin said.
Government policy dictates a profit must be made.
"In accordance with the government regulations the investment return rate must be between five to nine percent, however, our current figure is about 0.04 percent."
To make up for the shortfall, water prices would require a major hike -- up to NT$15 per metered unit. That would be a 40 percent increase over present rates.
"While we plan to propose the new pricing scheme to the Legislative Yuan early next year, the exact price won't be established until the Cabinet makes a decision" Lin said.
Meanwhile, an official at the Taipei water authority said he didn't foresee any signs of a price increase.
"Although the ministry oversees most of the country's water supply, Taipei City's water business is conducted by the city government," said Hsu Pei-chung (許培中), deputy director of the Taipei Water Department (台北自來水事業處).
Once the central government decides to raise water rates, we may follow suit as well, Hsu said.
"However, only the city government can make that decision."
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