TAIPEI (Taiwan News) — Taiwan Water Corporation could propose a water price increase to the Ministry of Economic Affairs by the end of March.
The company, which has not raised prices in 31 years, loses NT$2.45 (eight cents) per cubic meter of water sold. It will submit a review report to the ministry, seeking financial support from the government or approval for a price increase, per CNA.
Taiwan Water Corporation employs a four-tiered water pricing system: NT$7.35 per cubic meter for the initial 10 cubic meters, NT$9.45 for usage between 11 and 30 cubic meters, NT$11.55 for 31 to 50 cubic meters, and NT$12.08 for consumption exceeding 51 cubic meters.
The company plans to increase rates for water consumption above 10 cubic meters. It estimates that 60% of residential customers will not be affected, while large users consuming more than 51 cubic meters will face a more significant price increase.
The company reported a net loss of NT$3.95 billion last year and projects an NT$5.93 billion loss this year. It attributed the losses to rising water supply costs, driven by increased equipment depreciation, higher interest rates, and addressing leaks throughout the system.
The ministry's leak reduction plan, implemented in 2013, has saved approximately 264 million cubic meters of water annually. The effort reduced the water leakage rate from 19.55% to 11.99% last year.
The ministry will invest NT$80.8 billion over the next eight years in leak detection, pipeline replacement, and intelligent management systems. It expects the water leakage rate to decrease to 9.77% by 2032.
Taiwan's water prices are among the cheapest in the world. Premier Cho Jung-tai (卓榮泰) suggested in January that the nation establish a more reasonable water pricing system.
National Association of Small and Medium Enterprises Chair Li Yu-chia (李育家) expressed hope that any increase in water prices would be reasonable to avoid excessive impacts on commodity prices and operating costs.
Confederation of Asia-Pacific Chambers of Commerce and Industry Director-General Darson Chiu (邱達生) said adjusting water prices would help cover company losses and fund equipment maintenance and repairs.
