Taiwan Water Corp (Taiwater) is considering increasing water prices to counter mounting financial losses and plans to submit a pricing review report to the Ministry of Economic Affairs by the end of this month.
Taiwater said it aims to secure financial support or adjust its pricing while minimizing the impact on residential customers.
The company incurs a loss of NT$2.45 per cubic meter of water (m3) sold, the report said.
Photo: Su Fu-nan, Taipei Times
Taiwan’s water rates have remained unchanged for 31 years. The pricing structure has four tiers: NT$7.35/m3 for up to 10m3 of water, NT$9.45 for 11m3 to 30m3, NT$11.55 for 31m3 to 50m3 and NT$12.075 for any consumption exceeding 50m3.
The preliminary proposal suggests keeping the first-tier rate unchanged, applying moderate increases to the second and third tiers, and introducing larger hikes and additional brackets for the fourth tier.
Initial estimates show that at least 60 percent of consumers would not be affected, the report said.
The final decision on any changes would be made by the Executive Yuan, the report added.
Taiwater last year posted a post-tax loss of NT$3.94 billion (US$119.56 million), with losses expected to grow to NT$5.93 billion this year. The company cited rising costs, including depreciation, interest payments and ongoing efforts to reduce water leakage, as a key financial pressure.
Premier Cho Jung-tai (卓榮泰) in January urged the public to accept “fair” water pricing, while Minister of Economic Affairs J.W. Kuo (郭智輝) instructed Taiwater to submit its pricing adjustment review by the end of this month.
An initiative under consideration is a water quality-based pricing model, which would introduce premium pricing for higher-quality drinking water, creating an additional revenue stream for Taiwater.
The proposal involves installing water purification equipment at the consumer level, allowing households and businesses direct access to certified purified water from Taiwater, sources familiar with the matter said, adding that Taiwater’s in-house water quality testing capabilities would ensure compliance with drinking water standards.
However, the feasibility of the system and its effect on the overall water distribution network require further evaluation, they said.
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