Research Of Step Water Price Calculation In Foshan Water Group

In modern society, urban water supply is a critical industry in social and economic development. It is a matter of overall importance and a precursor related not only to the life and production of the people, but to normal operation and social order of the city. Using water pricing to regulate the people's comsuing behavior of water utilization is an effective method to realize sustainable development of water resources. However this method has not been fully adoptted for quite a long time in the past. Now how to apply water pricing mechanism to bring about rational and effective use of water resources and to reduce waste of water resources has become an increasingly concern of the world.Macro factors affecting urban water price can be generally summarized into three types: natural factor, economic factor and social factor; and micro factors affecting urban water price include such aspects as elasticity of water supply and demand, overall cost, service quality of water supply, profit rate, social and economic development level, etc. Reasonable water price system must meet two basic principles: one is promting and the other is social sustainable development.Step water pricing calculation is a method to set up water price in accordance with different comsuing and grades of water. In the process to set up step water price, the water supply department and the water utilization department must first take the local distribution of water resources, regional economic conditions and civilization construction into accounts, and then establish rational standards of water volume and reasonable prices of water utilization in the beginning and follow-up periods. Step water price calculation can benefit with sustainable utilization of water, show fairness in water utilization and make cross subsidy to recover the cost of investment.This article firstly, through a large number of case of investigations, seriously studied the distribution, extraction and utilization of water resources in different districts of Foshan city and various drawbacks of current water price, analyzed the cost of water supply and calculated the cost pricing of Foshan Water Group in 2003-2005 and then pointed out that carrying out water price reform in Foshan was the need to protect and develop the second water resources, to integrate utilization of water resources and to realize high quality water supply in the whole city of Foshan in 2015. Secondly the article, took the previous water pricing of Foshan Water Industrial Group Company and combination of the historic task and social responsibilities and taking the cost compensation, reasonable earnings, saving of water and fair burden, etc into consideration, made cost accounting on implementation of step water price of Foshan Water Group, and studied such aspects as the plan of water resources, strategy and step water price of the Foshan Water Industrial Group Company. Thirdly the article, taking saving water as prerequisite, applied the ripe design theory of step water price to Foshan Water Group. As a result, this method broke the only tradition mode of pricing, caused not to use China's current method of cost adding price, and changed the single mode of water pricing. It provided reference for analysis and study on step water pricing by the running water companies in the rest 4 districts other than Chancheng District of Foshan, and at the same time, it is the first time, combined the middle phase strategy of Foshan Water Group with that of Foshan People's Government, thus realizing double wins of the government and the enterprises.