Most of the delegates attending a hearing on water prices agreed to a price hike but expressed their concern about water quality Monday in Guangzhou.

Among the 35 delegates from different walks of life, 20 agreed to plan 2 (see a table below) offered by the price management department, which will ensure a 6 percent net profit for the city's tap water company. Another 13 agreed to plan 1, which will ensure a 4 percent net profit. Only one delegate, Li Jianzhao, opposed any increase in the price of water.

Li, representing the business sector, said that the government should find other ways to conserve water.

Those agreeing to plan 2 thought it would give the water company enough money to improve water quality and a stable price in the long run. Those choosing plan 1 believed that the public would find it easier to accept a moderate price rise.

Most thought the price rise was a good way to save water. Some suggested that households consuming less than 14 tons a month should pay less to promote water conservation.

"More importance should be attached to water quality after an increase of its price," said Tan Shifang, a retired resident.

Some representatives thought the company and the government should do more besides raising the price.

"What counts most importantly is that the water company and the government should develop saving-oriented water devices for residential and industrial uses," said He Jian'an, an official with the Guangzhou Consumer's Commission.

He said such water conservation devices played an important role in controlling water consumption.

Sources with the city's price management department said early this month that a draft had been formulated for a progressive water pricing system for residents.

According to Liu Zansun, an official with the water company, the company has seen revenue decline for years because of the low price of water, and this has hampered the improvement of water quality.

Statistics show that the water rates in Guangzhou are much lower than those of Beijing and Shanghai. In Beijing and Shanghai, the water prices for residential use currently stand at 3.7 yuan (US$0.45) and 1.03 yuan per ton respectively.

According to the proposed system in Guangzhou, the water price for residential use will likely rise from the present 0.9 yuan (US$0.1) to 1.24 yuan, or 1.32 yuan each ton, if a family of four consumes 22 tons of water a month or less.

The pricing scheme is accumulative, which means the more you consume, the more you pay. The plan will only be implemented among the 160,000 households whose water consumption can be recorded by the city's water company.

The water company will invest more than 1.1 billion yuan to install new devices to record water consumption for the remaining 1.16 million households in the next five years.

Water prices for government institutions, industry, service sector and businesses like car washes that consume a great deal of water are also expected to rise this year.

Editor: Yan