Discussion on the Water Price of the South-to-North Water Diversion Project in Jiangsu Province

Abstract

According to the water supply price management measures of water conservancy project,water supply cost accounting of the South-to-North Water Diversion Project in Jiangsu province follows the principle of two-part water price. Based on the analysis of two-part water pricing theory, combined with the actual situation of the South-to-North Water Diversion Project in Jiangsu province, the cost of water supply project in Jiangsu province is calculated. Also, we calculate the water project fund gap and the per -cubic meter water supply cost in Jiangsu province based on different quantities of water supply. Meanwhile, we design the two-part water price in Jiangsu province according to the relationship between the basic water supply and the annual water supply under the principle of two-part water pricing theory. The final calculation results are that the per -cubic meter water supply cost in Jiangsu province is 0.516 yuan/m³, the basic water supply is 577.5 million m³, the basic water supply cost is 0.618 yuan/m³, the water volume supply cost is 0.472 yuan/m³. In the end, suggestions on Jiangsu’s water fee collection policy are given.