Osan City Plans Phased Water Rate Increases Through 2022

[Suwon Ilbo=Correspondent Seo Dong-young] Osan City is pursuing a water rate increase for the first time in seven years to modernize aging water supply infrastructure and achieve realistic water rate pricing.

The city announced on the 12th that it will increase water rates by 7.6% beginning this month's billing period.

The city has maintained frozen rates since a rate increase in 2013. However, according to 2019 settlement results, the water rate realization rate against cost stands at 78.12%, falling short of the average rate of 87% in neighboring cities and counties. To address chronic deficits and facilitate maintenance of water supply facilities and replacement of aging pipes, the city plans to implement phased water rate increases through 2022.

Water rates will be increased every July through 2022, with increases of 7.6% in July 2020, 5.6% in 2021, and 5.4% in 2022.

The progressive rate structure for residential water will be abolished and consolidated into a single rate tier. Basic charges by pipe diameter will also be raised to 80% of the level in neighboring cities.

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

The city will also significantly expand its water rate discount policy beginning with the August billing period to ease the burden on vulnerable groups due to the rate increase.

The following groups will receive a 10-ton monthly discount: △Basic livelihood security recipients and near-poor households △Multi-child families with three or more unmarried children (including fetuses) △Households with severe disabilities △National merit recipients △Single-parent families and grandparent-grandchild families with unmarried children

Eligible individuals can apply at their local Administrative Welfare Center with an ID card to receive the discount.

Osan City Mayor Gwak Sang-uk stated, "The rate increase is necessary to supply clean water that residents can drink with confidence. We ask for residents' understanding and cooperation. Through the rate increase, we will strengthen policy consideration for vulnerable groups and secure sound finances."