Naju-si Decides Tiered Increase of Water and Sewage Fees

[Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] On the 28th, Naju City in Jeollanam-do announced that water and sewage rates will be increased following the review results of the Consumer Policy Deliberation Committee.

Naju City's water and sewage rates have long been far below the production cost, resulting in an accumulated financial deficit of approximately 14 billion KRW annually.

Moreover, the realization rates (revenue compared to production cost) are significantly lower than the provincial average of other municipalities, which are 80.8% for water supply and 32.3% for sewage.

According to the Consumer Policy Deliberation Committee, based on the 2020 settlement, the production cost for water supply in Naju is 1,840 KRW per ton, but the average rate is only 725 KRW, resulting in a realization rate of 39.4%.

For sewage treatment, the cost is 3,368 KRW per ton, while the average rate is merely 240 KRW, with a realization rate of 7.1%, causing chronic deficits.

The Consumer Policy Deliberation Committee decided to raise the rates with a long-term goal of achieving a 69.5% realization rate for water supply and 29% for sewage.

However, since a sudden increase would impose a heavy financial burden on citizens, a plan was devised to raise rates gradually over four years to minimize the increase rate.

This rate increase is the first in 19 years for water supply and 15 years for sewage.

Following the committee's review, the city has announced a legislative notice for the amendment of the ordinance on water and sewage rate increases.

A city official stated, “We will prepare measures to reduce water supply production costs to minimize household expenses and do our best to provide safe and clean tap water and eco-friendly sewage services for our citizens.”

Naju=Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong baekok@asiae.co.kr

This content was produced with the assistance of AI translation services.