JOINT CIRCULAR No. 75/2012/TTLT-BTC-BXD-BNN GUIDING PRINCIPLES AND METHODS FOR DETERMINING AND DECISION-MAKING AUTHORITY ON THE CONSUMPTION PRICE OF CLEAN WATER IN URBAN AREAS, INDUSTRIAL ZONES, AND RURAL AREAS

 

 

JOINT CIRCULAR

Guidelines on Principles and Methods for Determining and Authority to Decide on Water Consumption Prices in Urban Areas, Industrial Zones, and Rural Areas

________________

Pursuant to Decree No. 170/2003/ND-CP dated December 25, 2003 of the Government detailing implementation of certain provisions of the Price Ordinance; Decree No. 75/2008/ND-CP dated June 9, 2008 of the Government amending and supplementing certain provisions of Decree No. 170/2003/ND-CP dated December 25, 2003;

Pursuant to Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government on production, supply, and consumption of clean water; Decree No. 124/2011/ND-CP dated December 28, 2011 of the Government amending and supplementing certain provisions of Decree No. 117/2007/ND-CP dated July 11, 2007 on production, supply, and consumption of clean water;

Pursuant to Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 17/2008/ND-CP dated February 4, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 01/2008/ND-CP dated January 3, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development; Decree No. 75/2009/ND-CP dated September 10, 2009 of the Government amending Article 3 of Decree No. 01/2008/ND-CP dated January 3, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Agriculture and Rural Development;

Pursuant to Decision No. 2147/QD-TTg dated November 24, 2010 of the Prime Minister approving the National Program to Reduce Water Losses and Revenue Losses from Clean Water Supply until 2025.

The Ministers of Finance, Construction, and Agriculture and Rural Development issue this Circular guiding principles, methods for determining and authority to decide on clean water consumption prices in urban areas, industrial zones, and rural areas as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides principles and methods for determining clean water consumption prices and authority to decide on clean water consumption prices to serve as a basis for organizations with authority under the law and this Circular to establish, submit, review, approve pricing plans, and decide on clean water consumption prices implemented in urban areas, industrial zones, and rural areas.

Article 2. Applicability

This Circular applies to organizations with authority to establish, submit, review pricing plans, and decide on clean water consumption prices under the law and this Circular; water supply units providing water services in wholesale and retail sectors, and water consumers.

Chapter II

PRINCIPLES FOR DETERMINING CLEAN WATER CONSUMPTION PRICES

Article 3. Principles for Determining Clean Water Consumption Prices

1. Clean water consumption prices must be calculated accurately and comprehensively to cover reasonable production costs, total cost throughout the production, distribution, and consumption processes (including connection maintenance costs) to enable water supply units to maintain and develop based on technical standards, economic and technical norms published or issued by competent authorities under the law, and reasonable profit margins for commercial water volumes produced, operated, transmitted, wholesaled, and retailed by organizations or individuals (referred to as water supply units) according to the Pricing Regulation issued by the State and guided by this Circular; it must be consistent with the supply-demand relationship for clean water and socio-economic development conditions of the country, region, and people's income at different times; ensure the rights and legitimate interests of water supply units and water consumers; encourage water supply units to improve service quality, reduce costs, and losses while meeting customer needs, and encourage customers to use water efficiently and investors to invest in clean water production, supply, and consumption activities.

2. Clean water consumption prices for water supply units shall not be differentiated by economic components; nor shall they be differentiated by user type whether domestic or foreign organizations or individuals, but they shall be determined separately for different purposes such as: water for household use (taking into account support policies for poor households in ethnic minority and mountainous regions, coastal and island areas, and border regions according to current national criteria); water for administrative agencies, public institutions; for production, business, and services, consistent with water consumption characteristics, water sources, and water production conditions in each region, locality, and area.

3. Clean water consumption prices shall be set in accordance with the pricing principles stipulated in Clause 1 of this Article, in compliance with pricing principles, methods, and within the price range or limit prescribed by the State, but must be consistent with water quality according to current technical standards published or issued by competent authorities under the law.

4. In cases where the clean water consumption prices decided (or approved) by the People's Committee of the province or centrally governed city (hereinafter referred to as the Provincial People's Committee) are lower than the clean water pricing plan established by water supply units and reviewed by the Department of Finance according to the above-mentioned accurate and comprehensive calculation principles, then annually the Provincial People's Committee must consider and subsidize from the local budget or adopt a reasonable support mechanism in accordance with its authority and legal regulations to ensure that water supply units can compensate for costs and operate normally, except for clean water produced from clean water projects invested in under the Build-Operate-Transfer (BOT) model.

Article 4. Principles for Adjusting Prices

Annually, when factors constituting production costs for clean water calculated according to the principles stipulated in Article 3 and the methods for determining total production costs specified in Article 5 of this Circular change, or when there is a technological change in water treatment, quality standards for services, or changes in state policies related to cost increases (or decreases) in clean water consumption, then the competent authority deciding (or approving) the prices set out in this Circular must consider adjusting the price range (or specific consumption water prices) accordingly.

Chapter III

METHODS FOR DETERMINING CLEAN WATER CONSUMPTION PRICES

Article 5. Methods for Determining Total Production and Business Costs for Clean Water Products

1. The reasonable and valid total production costs of clean water products serving as the basis for calculating the overall cost and the price of one cubic meter (m3) of clean water must be calculated for the corresponding commercial water volume during the calculation period according to the economic and technical standards for clean water production published or issued by authorized agencies under the law (not based on the actual average production costs of water supply units in the province), including the following costs:

2. For clean water in urban areas and industrial zones (including industrial parks, export processing zones, high-tech parks, and economic zones - collectively referred to as industrial zones), each item of cost is determined as follows:

a) Direct material costs including raw material, fuel, and other direct production costs such as: expenses paid in cash for purchasing clean water, raw water (for businesses that need to purchase clean water and raw water), electricity, alum, chlorine, and auxiliary materials used in water treatment processes.

Direct material costs are determined by multiplying the quantity of each type of material used by its corresponding unit price; wherein:

- The quantity of materials used for producing clean water shall be applied according to the economic and technical standards for clean water production published or issued by authorized agencies under the law. For materials not yet covered by these standards, the Chairman of the Board of Management or General Director/Director of the water supply unit shall establish a standard within the pricing plan for clean water consumption to be approved by the provincial People's Committee;

- The material cost is the actual purchase price according to the state-set price or announced price, guidance price at the time of calculation (for materials still subject to state-set prices and price management through registration, declaration, negotiation, and public information disclosure) or market price recorded on invoices from sellers at the time of calculation (for materials not included in the state-set price list or announced price, guidance price), plus (+) reasonable circulation costs to the production and supply location (if applicable).

b) Direct labor costs including monetary expenses that water supply units must pay to direct production workers such as: wages, salaries, and allowances with wage characteristics, meal allowances, social insurance, health insurance, unemployment insurance, trade union fees, and other expenses as stipulated for direct production workers, including:

- Wages and salaries are determined by multiplying the number of workdays according to the economic and technical standards for clean water production published or issued by authorized agencies under the law by the corresponding daily wage rate (the daily wage rate includes basic wages and allowances according to state regulations);

- Meal allowances between shifts (if applicable) for workers participating in business operations according to current state regulations;

- Social insurance, health insurance, unemployment insurance, trade union fees, and other expenses (if applicable) for direct production workers according to current state regulations.

c) Common production costs These are indirect production costs (excluding direct material and labor costs as stipulated in points a and b of Clause 2 of this Article) incurred by production units of enterprises, including: depreciation, repair of fixed assets; material, tool, and equipment costs for workshops; wages, allowances, and meal allowances (if applicable) for workshop staff; social insurance, health insurance, unemployment insurance, and trade union fees for workshop staff; testing and standardization costs for clean water, service procurement costs, and other monetary costs included in the cost price according to legal provisions.

The method for determining material and service costs, labor costs in general production costs applies as stipulated in points a and b of Clause 2 of this Article.

Depreciation costs for fixed assets are implemented in accordance with the Ministry of Finance's regulations on the management, use, and depreciation of fixed assets.

d) Business management costs is the total of expenses for the management and operation machinery of the enterprise, including common expenses of the entire enterprise such as depreciation, repair of fixed assets serving the management and operation within the enterprise; salaries, wages, allowances, and mid-shift meal costs (if any) paid to the board of directors and managerial staff in various departments; social insurance, health insurance; unemployment insurance and trade union fees of the enterprise's management machinery; office material and supply costs, taxes, fees, and service purchase costs from outside belonging to the enterprise's office; other common expenses for the entire enterprise such as interest payment costs, inventory write-down provisions, bad debt provisions, hospitality, transaction costs, scientific research costs, technological innovation research costs, initiative and improvement costs, environmental protection costs, education and training costs, medical costs for the enterprise's workers, costs related to female workers, safe water supply costs, and other management costs according to current regulations. Enterprise management costs are allocated into product costs according to appropriate criteria for the enterprise's products such as clean water production, construction installation, and other products of the enterprise (if any); other management costs according to current state regulations.

The method for determining material and service costs, labor costs, and fixed asset depreciation costs in enterprise management costs shall be applied as prescribed in Points a, b, and c of Clause 2 of this Article.

đ) Total cost of one smallest packaging unit includes all costs related to the consumption of products and services, including: investment costs for integrated systems including water meters and other auxiliary equipment from network level III to the point of connection with customers using water, except where otherwise agreed by the parties; salaries, wage allowances, mid-shift meal costs (if any); social insurance; health insurance, unemployment insurance, trade union fees, and other costs as stipulated for sales personnel; advertising costs; external service purchase costs, maintenance connection costs, and other costs according to current state regulations. The method for determining each item of sales cost shall be applied as prescribed in Points a, b, c, and d of Clause 2 of this Article.

Maintenance connection costs are costs for managing and maintaining existing connections (including cases where customers do not use water) and will be used during the planned water supply period to ensure water service quality according to customer needs. Maintenance connection costs shall be specifically defined by the People's Committee of the province at a certain percentage of total production costs, ensuring suitability with local actual water usage conditions.

For rural clean water, the contents of the cost items are determined as follows:

a) Direct material costs include raw materials, fuel, and power costs directly used in producing products such as clean water, raw water (for units that need to purchase clean water and raw water), electricity, alum, chlorine, and other auxiliary materials used in water treatment processes.

Direct material costs are determined by multiplying the quantity of each type of material used by its corresponding unit price; wherein:

- The volume of main materials used to produce clean water shall be applied according to the technical and economic standards for clean water production established by authorized agencies as prescribed by law and published or issued.

- Material prices are the actual purchase prices according to state-set prices or announced prices, price guidance at the time of calculation (for materials subject to state pricing and price management through registration, declaration, negotiation, and public information on prices) or market prices recorded on invoices of sellers at the time of calculation (for materials not included in the list of state-set or announced prices) plus (+) reasonable circulation costs to the place of production and water supply (if any).

b) Direct labor costs

- If water supply projects are invested with capital originating from the state budget and directly from the state budget by enterprises and public service units established according to state regulations to manage and operate for rural clean water business, direct labor costs shall be determined according to the method for calculating direct labor costs for producing clean water in urban areas and industrial zones, specifically:

+ Wage and salary costs are determined by multiplying the number of workdays according to the technical and economic standards for clean water production published or issued by authorized agencies under the law by the corresponding daily wage rate (the daily wage rate includes basic wages and wage allowances stipulated by the state suitable for the type of enterprise and public service unit);

+ Mid-shift meal costs (if any) for workers participating in the enterprise's business activities shall be implemented according to current state regulations;

+ Social insurance, health insurance, unemployment insurance, trade union fees, and other costs for direct production workers shall be implemented according to current state regulations.

- If water supply projects are handed over by the state to cooperatives, community residents, or individuals to manage and operate, or if water supply projects are self-funded by cooperatives, community residents, or individuals for clean water business, direct labor costs shall be calculated based on the results of discussions and unanimous agreements at the members' congress or based on agreements between community residents using water and water supply units, equivalent to the average wage level of production and business sectors providing goods and services in the local area and in compliance with current state regulations.

c) Common production costs (if any) shall be calculated as general costs for producing and operating clean water in urban areas and industrial zones.

d) Enterprise management costs or water supply unit management costs (if incurred): shall be calculated in accordance with the method for calculating enterprise management costs for the production and business of clean water in cities and industrial zones.

đ) Total cost of one smallest packaging unit (if incurred): shall be calculated in accordance with the method for calculating sales expenses for the production and business of clean water in cities and industrial zones.

4. When determining the total production and business costs of the water supply unit, it must accurately and fully calculate reasonable and valid costs; exclude costs that cannot be included in the total production and business costs according to the pricing regulation for goods, services issued by the Ministry of Finance and relevant laws.

Common costs not only serving the production and business of clean water but also related to many areas of activity within the water supply unit and costs that must be allocated during the calculation period shall be implemented in accordance with accounting laws and relevant laws and provisions set forth in this Circular.

Article 6. Method for Determining the Average Retail Price of Clean Water

1. The full cost of 01 cubic meter of clean water serving as the basis for calculating the average price of clean water is determined according to the following formula:

Where:

a) Ztb is the full cost of 01 cubic meter of average clean water (unit of measurement: VND/cubic meter).

b) Ct is the total reasonable and valid production and business costs corresponding to the commercial water volume (unit of measurement: VND) determined in accordance with the guidance provided in Article 5, Chapter III of this Circular.

c) SLtp is the commercial water volume, determined as follows:

Where:

- SLtp: is the commercial water volume (unit of measurement: cubic meters/year);

- SLsx: is the production water volume.

+ Production water volume of cities and industrial zones: is calculated based on the annual planned extraction volume of each plant, consistent with the approved water consumption needs by the Provincial People's Committee (unit of measurement: cubic meters/year).

+ Production water volume of rural areas:

If water supply facilities managed and operated by enterprises or public service units established in accordance with State regulations, the production water volume is determined similarly to the production water volume of cities and industrial zones.

If water supply facilities managed and operated by cooperatives, community residents, or individuals, the production water volume is the annual extraction volume of each unit based on agreements about water supply needs between the water supply unit and water consumers.

- KLhh: is the volume of water lost or uncollected, abbreviated as the water loss volume (including natural and technical losses) between the production water volume and the commercial water volume (unit of measurement: cubic meters); the water loss volume is determined by multiplying the percentage rate by the production water volume. The specific water loss rate is prescribed by the Provincial People's Committee in accordance with actual technical conditions, management levels, and incorporated into the retail water consumption price at a maximum rate not exceeding the following:

+ For water distribution networks put into use for less than 10 years: 23%;

+ For water distribution networks put into use for 10 years or more: 32%;

+ In cases where the water distribution network put into use has mixed usage periods (including both networks under 10 years and those over 10 years): 27%;

This water loss rate must be monitored and summarized from actual production and business operations, and strict management measures must be taken to gradually reduce it to meet the water loss rates specified in Decision No. 2147/QĐ-TTg dated November 24, 2010 of the Prime Minister approving the national program to combat water loss for each stage: by 2015, the average water loss rate is 25%; by 2020: 18%; by 2025: 15%.

For water supply units with water loss rates approved by the Provincial People's Committee in their annual retail water consumption pricing plans after this Circular takes effect lower than the maximum water loss rates above, the allocation rate will be based on the water loss rate approved by the Provincial People's Committee; At the same time, to encourage water supply units to strive to reduce water loss rates, the water loss rate approved by the Provincial People's Committee will remain stable for three years.

Water supply units that reduce actual water loss rates below the approved rates in their pricing plans will use 100% of the revenue generated from reduced water loss rates to supplement 70% into the development investment fund and basic construction capital, while the remaining 30% will be supplemented into the reward and welfare fund of the water supply unit.

2. The average retail price of clean water (excluding value-added tax) is determined according to the following formula:

Where:

a) Gttbq is the average retail price of clean water (unit of measurement: VND/cubic meter).

b) Ztb is the full cost of 01 cubic meter of clean water determined in accordance with Clause 1, Article 6, Chapter III of this Circular.

c) P: is the benchmark profit. Based on the actual business conditions of clean water businesses and local residents' income, the Provincial People's Committee sets a reasonable benchmark profit in the structure of the retail price of clean water as follows:

- For water supply units that organize the entire process from production, extraction, supply, to final retail sales: The benchmark profit is set at a minimum of 5% of the full cost.

- For water supply units that only handle the production, extraction, and supply process through wholesale water sales (or wholesale part of the water volume) to retail units for resale at regulated prices, the parties agree on wholesale prices. The total profit for the wholesale stage and the profit for the retail stage are agreed upon by both parties but should not exceed the above limit.

The guidance on the method for calculating the average clean water consumption price above shall be used to calculate the average clean water price and serve as the basis for determining the clean water consumption price for each purpose, ensuring that the clean water consumption price for each purpose is consistent with the average clean water consumption price.

Article 7. Method for Determining Clean Water Consumption Prices for Each Purpose

1. Wholesale Price of Clean Water:

The wholesale price of clean water sold by the wholesale water supply unit to the bulk purchasing units (units purchasing water for resale) and retail water supply units (units selling water directly to end-users) when conducting wholesale sales of clean water shall be agreed upon to ensure that the wholesale water supply unit and the retail water supply unit can cover production and business costs and achieve reasonable profit levels without contravening the provisions of Article 6 and not exceeding the retail price set by the competent authority. In cases where an agreement cannot be reached on the price level, either party (or both parties) has the right to request the Provincial Department of Finance to organize price negotiations in accordance with the law.

2. Clean Water Consumption Price (excluding value-added tax) for Each Purpose:

a) The clean water consumption price for domestic purposes shall be applied based on a progressive pricing mechanism, with households using less than the water usage quota being charged a lower price and vice versa. For other purposes, a single pricing mechanism shall apply, but with different prices according to the specific water usage purpose.

In areas where there is excess water supply capacity compared to demand, the progressive pricing mechanism for domestic clean water consumption may not be implemented, instead applying the average domestic water price to encourage consumers to use clean, safe water; this also facilitates the development of water distribution networks by water supply enterprises and improves production efficiency.

Based on the average clean water consumption price determined under Article 6 of this Circular, referring to the framework of domestic clean water consumption prices set by the Ministry of Finance, and considering the structure of clean water consumption subjects at the local level, the specific clean water consumption price for each purpose shall be determined in accordance with the principle that the weighted average of all consumption prices equals the average clean water consumption price. (For the domestic water supply price, the overall average price shall not be lower than the minimum price and not higher than the maximum price within the framework set by the Ministry of Finance).

The formula for calculating the clean water consumption price for each purpose is as follows:

Where:

Gttthmđ is the clean water consumption price for each purpose

Gttbq is the average clean water consumption price

Httthmđ is the pricing factor according to the purpose of use, determined as follows:

b) For the amount of domestic clean water used by residential households: Apply the pricing factor according to the table above. If the number of people using domestic water in a household (including collective housing) can be determined, the pricing factor shall be calculated based on the water usage quota (in m3/person/month) as follows:

- Level from 1m3 - 2.5 m3/person/month                     SH1 0.8

If more than this level is used, apply the progressive pricing as follows:

- Over 2.5 m3 - 5 m3/person/month                         SH2 1.0

- Over 5 m3 - 7.5 m3/person/month                         SH3 1.2

- Over 7.5 m3/person/month                                  SH4 2.5

For residential households consuming clean water without meter installation or in rural areas where communal water tanks are used, temporarily apply a fixed charge equivalent to the consumption of one person at 4m3/month, or for places where consumption cannot be calculated per person, apply it to households at 16m3/month based on the SH2 consumption level.

In special cases where the main consumption of produced water is for domestic purposes of residential households and the clean water consumption price does not meet the maximum pricing factor as prescribed, adjustment of the pricing factor beyond the maximum limit for the first SH1 level is allowed to ensure that the average clean water consumption price factor equals 1.

In cases where students and workers renting houses (with a lease term of 12 months or more) have their landlords purchase water from the water supply unit for their use, four people (based on temporary residence registration certificates and rental contracts confirmed by local authorities or notarized by professional organizations) shall be considered as one household for water consumption purposes, allowing the water supply unit to apply the domestic water price to the landlord and guide the landlord to sell water to these individuals at the price applied by the water supply unit to the landlord.

In cases where urban industrial water supply units provide clean water for domestic use to rural farmers outside urban areas, the clean water consumption price shall be negotiated based on the domestic clean water price in urban and industrial areas.

c) For subjects using clean water for other purposes such as administrative agencies, public institutions, businesses engaged in production and service activities..., the consumption price of clean water shall be determined by the business producing and trading clean water according to the pricing plan approved by the People's Committee of the province but shall not exceed the maximum pricing coefficient prescribed in this Circular. Based on the table of the maximum pricing coefficients relative to the average price, the pricing coefficient shall be determined appropriately depending on the characteristics of clean water consumption and the ratio of clean water usage among different purposes in the locality.

In cases where water supply units in urban areas and industrial zones provide water supply services to customers outside these areas for the aforementioned purposes, the consumption price of clean water shall be calculated based on the appropriate water prices corresponding to each purpose of use within the urban area or industrial zone.

In cases where a customer uses only one water meter for multiple purposes as stipulated in a water usage contract, the water supply unit and the customer shall base their agreement on the actual water usage situation to determine the specific proportion of water used for each purpose to apply the appropriate water price for each purpose. If the water supply unit and the customer cannot agree on the specific proportion of water used for each purpose, the water price for the main purpose as agreed in the contract shall be applied. In cases where the main purpose of use cannot be agreed upon, the report shall be submitted to the Department of Finance to organize price negotiation in accordance with the law.

For particularly difficult rural areas, ethnic minority and mountainous regions, coastal and island areas, border regions according to the current criteria set by the State, if the Provincial People's Committee approves a lower consumption price plan for clean water than the correct and comprehensive clean water price plan currently in force, in line with the payment capacity of the people, then the Provincial People's Committee shall have policies or mechanisms to adjust the price level between urban and rural water supply units within the same water supply entity (rural water supply units being subsidiary to urban water supply units) to ensure harmonization of urban and rural water prices. For provinces that cannot adjust the price level between urban and rural water supply units due to legal provisions regarding enterprises, the Provincial People's Committee shall annually subsidize from the local budget to ensure the rights and legitimate interests of the water supply units. The mechanism, procedures, and processes for subsidies shall be specifically regulated by the Provincial People's Committee in accordance with the actual conditions of the locality but shall not contravene current regulations on state budget management.

Chapter IV

AUTHORITY TO DETERMINE THE CONSUMPTION PRICE OF CLEAN WATER AND MANAGEMENT OF THE CONSUMPTION PRICE OF CLEAN WATER

Article 8. Rights and responsibilities of agencies and units in establishing, submitting, and reviewing pricing plans

1. The Price Management Agency under the Ministry of Finance shall cooperate with relevant agencies to establish the framework for the consumption price of clean water for daily use to be decided by the Minister of Finance.

2. Clean water supply units shall base their clean water pricing plan on the consumption price framework for clean water for daily use prescribed by the Ministry of Finance; the pricing regulation issued by the State; the principles and methods for determining the clean water price stipulated in this Circular, and submit it for review by the Department of Finance, in coordination with the Department of Construction, the Department of Agriculture and Rural Development before submitting it to the Provincial People's Committee for decision and approval.

Article 9. Authority to Determine the Price of Clean Water

1. The Ministry of Finance shall prescribe the framework price for domestic clean water consumption applicable throughout the country.

2. The People's Committee of the province shall approve the pricing plan for clean water proposed by the water supply unit and issue specific prices for domestic clean water consumption within the province in accordance with the framework price issued by the Ministry of Finance. In special cases such as areas with brackish water, coastal areas, or areas with difficult conditions for water production where the cost of producing and supplying domestic clean water exceeds the maximum price level of the framework price issued by the Ministry of Finance, the People's Committee of the province shall decide on the price of domestic clean water consumption based on actual circumstances but not exceeding 50% above the maximum price level of the framework price for domestic clean water consumption issued by the Ministry of Finance.

The People's Committee of the province shall implement guidance on management authority, pricing authority, and specific water prices for self-flow water supply facilities, small-scale water supply facilities managed by communities, and rural water prices agreed upon by community residents who invest in the production and business of water.

3. Water supply units shall independently determine the price of clean water for purposes other than domestic use in accordance with the approved pricing plan for clean water by the People's Committee of the province.

Chapter V

IMPLEMENTATION

Article 10. Implementation Organization

1. The Ministry of Finance shall lead and coordinate with the Ministry of Construction and the Ministry of Agriculture and Rural Development to periodically or urgently inspect the establishment and issuance of regulations on managing the price of domestic clean water consumption at local levels and the development of pricing plans; compliance with water pricing laws by water supply units as stipulated in this Circular.

2. The Department of Finance shall lead and coordinate with the Department of Construction, the Department of Agriculture and Rural Development, and relevant departments to inspect the implementation of decisions on the price of domestic clean water consumption, the establishment, decision-making, and implementation of prices for domestic clean water consumption applied to users at the local level; advise the People's Committee of the province to promptly address any arising issues; and simultaneously compile reports to the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development for monitoring and adjusting the framework price when necessary.

3. Water production and business units must have plans to develop water sources and distribution networks to meet consumption needs, improve water service quality; regularly monitor and inspect clean water consumption, collect water fees accurately and appropriately for each user category; promptly take measures to address water loss and revenue loss.

4. Depending on the actual situation of clean water production and consumption in cities, industrial zones, and rural areas during different periods, the Ministry of Finance shall cooperate with the Ministry of Construction and the Ministry of Agriculture and Rural Development to study, amend, and supplement methods for determining the price of domestic clean water consumption as appropriate.

Article 11. Effective Date

This Circular takes effect from June 29, 2012, and replaces Circular Joint No. 95/2009/TTLT-BTC-BXD-BNN dated May 19, 2009, of the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development guiding principles, methods for determining, and authorities for deciding the price of domestic clean water consumption in cities, industrial zones, and rural residential clusters.

During implementation, if there are difficulties or obstacles, they should be reported promptly to the Ministry of Finance, the Ministry of Construction, and the Ministry of Agriculture and Rural Development for consideration and resolution./.