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The Chinese capital raised water rates starting yesterday, adding nearly 30 percent to water bills and establishing the ninth price hike in the past 13 years.

As a result of the change, Beijing's water rates climbed to 5.04 yuan (61 US cents) from 4.01 yuan (48 US cents) per cubic meter, according to Zhang Wanheng, an official with the Beijing Municipal Commission of Development and Reform.

But the price for water used for agriculture and for farmers' household needs, which account for 45 percent of the city's water supply, will remain at present unchanged, said Zhang.

In addition, plans for incremental charges on residential water consumption, which aroused great public attention early this year, will not be carried out along with the price hike, said Zhang.

Under this proposed plan, a household which uses water within a set quota will pay a basic rate, and those who consume more water than average will pay more - probably up to five times more for the extra water.

Zhang explained that there are still many unsolved problems such as outdated water meters and inaccurate household registration, so that the proposal to charge higher rates to those above quota had to be postponed.

However, a similar quota system has been enforced on government and commercial institutions, including the military command headquarters, starting yesterday, according to the Xinhua News Agency.

Bi Xiaogang, deputy director of the Municipal Water Affairs Bureau, said quotas for work unit water consumption were reduced by 10 to 15 percent, and a progressive pricing system will be introduced.

A unit which consumes more water than the set quota will pay up to four times above the basic price for the additional water, said Bi.

Statistics show that the city's annual non-residential water consumption is about 1 billion cubic meters, with more than 70 percent of that used by work units where water waste often occurs.

Bi said all organizations must adopt water-saving toilets and faucets, and those who squander water resources would receive severe punishments and be made public.

The new round of price hikes is estimated to bring in an extra revenue of 635 million yuan (US$76.8 million), and the total revenue from water this year will rise to 1.9 billion yuan (US$230 million), said Zhang.

Most of the revenues will be used to explore, protect, and conserve water resources, popularize water efficient measures, help pool a special fund for financing a project to divert water from the Yangtze River to Beijing and cover the cost needed in the operation and construction of sewage facilities such as pipelines, said Zhang.

However, water guzzling businesses such as spas, saunas and massage centers suffer a heavy blow by the price hikes.

The water price for bathing industry jumped to 61.5 yuan (US$7.4) from the previous 11.2 yuan (US$1.4) per cubic meter.

(China Daily August 3, 2004)