Shanghai plans to raise tap water prices

Shanghai will raise residential water prices when it puts a new three-tiered water pricing system into effect in August, local media reported Tuesday.

Under the new system, the more residents use, the more they pay. For example, households will be charged 3.45 yuan ($0.56) per cubic meter until they use 220 cubic meters of water in a given year. The following month, they will be charged 4.83 yuan per cubic meter until they use 300 cubic meters, according to a report on the news website eastday.com. Households using more will be charged 5.83 yuan per cubic meter. The current residential water rate is a flat 2.8 yuan per cubic meter.

The Shanghai Municipal Development and Reform Commission said at a press conference Tuesday that it is raising the rates to fund an expansion of the city's sewer system. All of the city's water rates include a 1.70-yuan-per-cubic-meter sewer fee.