Osan City Implements Stepwise Water Rate Increases Through 2022

[Suwon Ilbo=Correspondent Seo Dong-young] Osan City will implement its first water rate increase in seven years to modernize aging water supply facilities and align rates with actual costs.

The city announced on the 12th that it will raise water rates by 7.6% beginning with bills issued this month.

Although the city has frozen water rates since the last increase in 2013, the 2019 settlement results showed a water rate realization rate of 78.12% against actual costs, falling short of the average for neighboring cities and counties (87%). Facing chronic deficits and the need to manage water facilities and replace aging pipes, the city plans to implement stepwise water rate increases through 2022.

Water rates will increase annually in July through 2022, with increases of 7.6% in July 2020, 5.6% in 2021, and 5.4% in 2022.

Residential water service will eliminate progressive tiered pricing and consolidate into a single rate tier, while basic charges by pipe diameter will be raised to 80% of the level in neighboring cities.

Accordingly, the residential Phase 1 (0-20 tons) rate, currently 450 won per ton, will rise to 500 won in July, 540 won in 2021, and 580 won in 2022. The general use Phase 1 (0-50 tons) rate will increase from 800 won per ton currently to 860 won in July, 910 won in 2021, and 960 won in 2022.

The city will also significantly expand discount policies on water charges beginning with bills issued in August to ease the burden on vulnerable populations caused by the rate increase.

The following groups will receive discounts of 10 tons per month: △basic livelihood security recipients and near-poor households △multi-child households with three or more minor children (including fetuses) △households with severely disabled persons △national merit awardees △single-parent families and grandparent-headed families with minor children.

Eligible applicants can receive discounts by applying at their residential administrative welfare center with an identification document.

Osan City Mayor Gwak Sang-wook stated, "The rate increase was necessary to supply clean water that residents can drink with confidence. We ask for citizens' understanding and cooperation," and added, "Through the rate increase, we will strengthen policy support for vulnerable populations and secure financial soundness."