It was only when Premier Cho Jung-tai (卓榮泰) instructed the Ministry of Economic Affairs to conduct a reasonable review of water utility prices that I realized prices have been frozen for 31 years.
In the past 17 years since I settled down in my hometown, I have received a water bill every two months, each only amounting to about NT$200. I was shocked at how cheap water prices are. Rates should have been raised long ago, and there are a number of reasons supporting an increase.
First, the minimum monthly wage has more than doubled, increasing from NT$14,010 in 1994 to NT$28,590 this year. That is the most basic and sufficient reason, especially given the increase in global inflation. Water prices should more accurately reflect the increased cost of water.
Second, a reasonable increase in water utility prices would encourage water conservation. A 5 or 6-liter bottle of mineral water only costs about NT$60 to NT$70 at the convenience store — a price members of the public are willing to pay. Additionally roadside water refill stations offer water for as cheap as NT$1 per liter, creating a booming business opportunity. Currently, the price for water usage per cubic meter below 10m3 is only NT$7.35. Could such a low price really encourage people to value or conserve water? At the same time, a price adjustment could encourage factories and businesses to install water recycling equipment, thereby fulfilling their social responsibility as major water consumers.
Last, Taiwan’s geographical conditions make it quite difficult to find suitable locations for new reservoirs — sedimentation reduces the actual carrying capacity of existing reservoirs and, impacts from extreme weather lead to uneven rainfall distribution. Economic development requires the support of natural resources such as water. By reasonably adjusting water prices, we could alleviate water shortages and increase our overall supply.
I live in a three-and-a-half story townhouse. For my everyday water usage — laundry, cooking, watering plants, bathing and so on — my total water utility costs average at about NT$3 per day. Is a rate this low really reasonable?
Wang Juei-hsing is a former chief of the Taiwan Provincial Government’s Land Development Division.
Translated by Kyra Gustavsen
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