China is to issue a regulation to raise water prices in a bid to contain excessive water consumption, a source with the National Development and Reform Commission (NDRC) said Wednesday.

The regulation, which is jointly promulgated by the NDRC and the Ministry of Water Resources, will take effect January next year.

However, the source did not indicate by how much water prices would be increased. The price hikes would probably be left to local governments to decide.

It was also unknown whether the price increases would be introduced in Shenzhen, which raised the price for monthly household consumption exceeding 25 tons at the beginning of the year.

Water is now charged in Shenzhen each month on a progressive rate: 1.5 yuan (18 US cents) each ton from one ton to 25 tons, 2.25 yuan (27 US cents) from 26 to 30 tons, and 3 yuan (36 US cents) from 31 tons and above.

According to the new regulation, the methods of adjusting water prices include raising prices, progressive charging and seasonal floating of water prices.

A NDRC official noted that water prices for industrial use will increase when the regulation takes effect and the prices of water for agricultural use will rise slightly.

(Xinhua News Agency July 31, 2003)