Changwon Special City to Raise Water Utility Charges Starting from November Billing After 9 Years

Abolition of Residential Tiered Electricity Rates, 12% Annual Increase for 4 Years
Investment in Normalizing Waterworks Operations and Facility Improvement Costs

Changwon Special City in Gyeongnam will raise water supply charges starting from the bills issued in November, marking the first increase in 9 years.

This rate hike plan is the first since the charges were frozen for 9 years from 2014, and will increase by 12% annually over 4 years. For residential rates, following the nationwide trend, the progressive rate system disadvantageous to multi-person households will be abolished (rate unification), adjusting the unit price from 650 KRW to 680 KRW per ton, followed by a 12% increase. For general use, public bath use, and industrial use, a 12% annual increase rate will be applied to the existing unit prices.

Changwon Special City Waterworks Office is holding a briefing regarding the increase in water service charges.

Therefore, the unified residential rate will be raised to 760 KRW per ton, and a two-person household using 10 tons (㎥) per month will pay 1,100 KRW more than before, while a four-person household using 20 tons (㎥) per month will bear an additional 2,200 KRW compared to the previous charges.

Changwon Special City planned the rate increase from the first half of this year to resolve the severe deficit in the water supply business and to secure funds for projects such as replacing aging pipes. However, considering the household burden caused by public utility rate hikes, the timing was adjusted and the city council's opinions were reflected during the ordinance amendment process, finalizing the application of the new rates from the November billing cycle.

The rate increase plan was first carefully reviewed and decided by experts from various fields at the Consumer Policy Deliberation Committee, and then thoroughly examined by the city council. Considering the current financial situation, it was concluded that the originally proposed plan was the best option, and it was resubmitted and approved at the September extraordinary session.

As of 2022, the water supply charge realization rate in Changwon City was 65.3% (68.0% in 2021), with expenditures exceeding revenue, resulting in a net loss of 13.8 billion KRW. According to statistical data, compared to other local governments in 2021, Changwon's charge realization rate of 68.0% is significantly lower than the average of other special cities (Goyang, Suwon, Yongin) at 80.7%, and cities of similar scale with comparable usage (Jeju, Bucheon, Pyeongtaek, Hwaseong) at 85.1%.

Water supply charge revenues are fully used for the production and supply of tap water, and the additional income from the rate increase will be used for urgent project expenses such as maintenance of aging water networks, operation of water purification plants, local water supply construction, meter replacement, and major facility repairs and maintenance.

Additionally, to prevent confusion among citizens regarding the rate increase, promotional activities will be strengthened through SNS and close communication by water meter readers to accurately convey the information.

Lee Jong-deok, Director of the Water Supply Office, said, “We ask for your understanding that the rate increase is inevitable to provide safe and clean tap water and to improve facilities. To reduce the burden on citizens caused by a sudden rate hike, the increase will be implemented gradually over four years.” He added, “We will make further efforts to resolve management difficulties through the rate increase and to improve management efficiency. We will keep in mind that we are responsible for the health and lives of citizens and will do our best to supply the highest quality tap water.”

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