Namwon-si to Increase 'Public Sewerage Charges' Starting Next Month
Namwon City in Jeonbuk announced on the 29th that public sewage fees will be increased starting next month to resolve the chronic deficit in the sewage business.
The sewage business is operated as an independent accounting system under the Local Public Enterprises Act, where operating expenses must be covered by self-generated revenue such as 'sewage usage fees.' Namwon City has so far operated the sewage business at the lowest fees, refraining from raising sewage fees to avoid burdening citizens.
However, currently, Namwon City's sewage fees average 526 KRW/t, while the sewage treatment cost is 4,165 KRW/t, resulting in losses the more sewage is treated. An urgent improvement plan is required, as the sewage business realization rate is 12.6%, operating at an annual deficit of about 14 billion KRW.
Additionally, with the recent strengthening of sewage treatment discharge water quality standards and increased demand for environmental improvement projects such as sewage pipe replacement and maintenance to prevent disasters caused by climate change, it is pointed out that the financial deficit of the sewage business will worsen further.
A city official stated, “Although we prepared a plan to raise sewage usage fees in the second half of this year, we could not proceed considering the economic situation of citizens. However, raising sewage fees is inevitable to improve sewage welfare and create a pleasant living environment. We ask citizens to understand the city's circumstances.”
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Namwon = Asia Economy Honam Reporting Headquarters, Reporter Jeong Young-gwon baekok@asiae.co.kr
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