The Beijing Municipal Development and Reform Commission is soliciting public opinions on the "Notice on Issues Concerning the Price of Recycled Water in the City" (Draft for Comments). According to the draft, the price of recycled water in the city is proposed to be adjusted from government-guided prices to market-regulated prices, with recycled water supply enterprises and users independently negotiating prices based on the principle of "higher quality, higher price."

According to the 2018 "Beijing Municipal Pricing Catalog," the price of recycled water in the city is subject to government pricing. According to the Beijing Municipal Development and Reform Commission's "Notice on Adjusting the Price of Recycled Water in Beijing," the current price of recycled water in the city is managed according to the government's maximum guidance price, not exceeding 3.5 yuan per cubic meter.

In the drafting explanation, the Beijing Municipal Development and Reform Commission introduced that the adjustment of pricing power is based on the "Guiding Opinions on Promoting the Resource Utilization of Wastewater" issued by the National Development and Reform Commission and nine other ministries and commissions. This document clearly requires the establishment of a "user pays" system, the deregulation of government pricing for recycled water, and the independent negotiation of prices by recycled water supply enterprises and users based on the principle of "higher quality, higher price."

In terms of specific prices, it is proposed to encourage both the supply and demand sides of recycled water to negotiate prices in accordance with group standards such as the "Guiding Principles for Negotiating Prices of Recycled Water."

The draft for comments also clarifies relevant tax and fee matters: In order to promote the utilization of recycled water and effectively reduce the tax and fee burden on recycled water users, in accordance with relevant regulations, users of recycled water do not pay water resource tax and sewage treatment fees.

In terms of strengthening industry regulatory management, the Notice implements the requirements of the "Beijing's Three-Year Action Plan for Winning the Battle Against Urban and Rural Water Pollution (2023-2025)" and the "Beijing's 14th Five-Year Plan for Wastewater Treatment and Resource Utilization," and clarifies the relevant requirements for the water affairs department to continue strengthening the management of the recycled water industry to ensure the orderly deregulation of recycled water prices.

It is understood that the water affairs department will strengthen management and guidance of recycled water production and sales enterprises (units), ensuring the supply to key water-using units; strengthen the management of franchise operation or entrusted operation agreements for recycled water production and sales, constraining the pricing behavior of enterprises (units) at the source; and strengthen the constraints of recycled water industry standards to ensure that the quality and price of recycled water match. At the same time, market regulatory departments will strengthen law enforcement on recycled water prices and investigate and deal with illegal pricing behaviors in accordance with the law.

The "Beijing's 14th Five-Year Plan for Wastewater Treatment and Resource Utilization" proposes to reasonably optimize the supply and demand structure of recycled water, promote the use of recycled water for municipal miscellaneous purposes, landscaping, industry, services, and ecological water replenishment of rivers and lakes, and focus on promoting the replacement of production and living water with recycled water, gradually achieving sufficient supply and replacement of recycled water for municipal miscellaneous purposes, landscaping, industry, and services. Data shows that at the end of the 13th Five-Year Plan period, the city's wastewater treatment rate reached 95%, and the recycled water utilization rate exceeded 60%. According to the plan, by 2035, the city's recycled water utilization rate will reach more than 70%.

Attachment 1

Notice on Issues Concerning the Price of Recycled Water in the City

To all relevant units:

In order to further improve the efficiency of water resource utilization, in accordance with the requirements of the document "Guiding Opinions on Promoting the Resource Utilization of Wastewater" (Development Reform Environmental Protection [2021] No. 13) issued by the National Development and Reform Commission and nine other ministries and commissions, the relevant matters concerning the price of recycled water in the city are hereby notified as follows:

1. The price of recycled water in the city will be adjusted from government-guided prices to market-regulated prices, with recycled water supply enterprises and users independently negotiating prices based on the principle of "higher quality, higher price."

2. In order to promote water conservation and recycling, in accordance with relevant regulations, users of recycled water do not pay water resource tax and sewage treatment fees.

3. The water affairs department will strengthen industry management. Strengthen management and guidance of recycled water production and sales enterprises (units), ensuring the supply to key water-using units. Strengthen the management of franchise operation or entrusted operation agreements for recycled water production and sales, constraining the pricing behavior of enterprises (units) at the source. Strengthen the constraints of recycled water industry standards to ensure that the quality and price of recycled water match.

4. Market regulatory departments will strengthen law enforcement on recycled water prices and investigate and deal with illegal pricing behaviors in accordance with the law.

5. Encourage both the supply and demand sides of recycled water to negotiate prices in accordance with group standards such as the "Guiding Principles for Negotiating Prices of Recycled Water."

6. This notice shall come into effect from , 2023. The Beijing Municipal Development and Reform Commission's "Notice on Adjusting the Price of Recycled Water in Beijing" (Jing Development Reform [2014] No. 885) is hereby repealed.

This is hereby notified.

(Source: Beijing Daily Client, Beijing Municipal Development and Reform Commission)