Joint Circular No. 75/2012/TTLT-BTC-BXD-BNNPTNT guiding principles, methods for determining and authorities' decision-making power 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 deciding the price of clean water consumption

in urban areas, industrial zones, and rural areas clean water in urban areas,

industrial zones and rural areas

____________________________

Pursuant to Decree No. 170/2003/ND-CP dated December 25, 2003 of the Government detailing the 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;

Pursuant to Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government on the 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 of the Government on the production, supply, and consumption of clean water;

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

Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the 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;

Pursuant to Decision No. 2147/QD-TTg dated November 24, 2010 of the Prime Minister approving the National Program to prevent water loss and revenue loss from clean water until 2025.

The Minister of Finance; the Minister of Construction; the Minister of Agriculture and Rural Development promulgates this Circular guiding the principles, methods for determining, and the authority to decide the price of clean water consumption in urban areas, industrial zones, and rural areas as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

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

Article 2. Applicability

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

Chapter II

PRINCIPLES FOR DETERMINING THE PRICE OF CLEAN WATER CONSUMPTION

Article 3. Principles for determining the price of clean water consumption

1. The price of clean water consumption must accurately and fully cover reasonable production costs, total cost during the production, distribution, and consumption processes (including connection maintenance costs) to enable water supply units to maintain and develop based on technical standards, economic norms, and regulations published or issued by competent authorities under the law, along with a reasonable profit margin for the volume of commercial water produced by organizations or individuals undertaking part or all of the activities of extracting, producing, transmitting, wholesaling, and retailing clean water (referred to as water supply units) as stipulated in the Pricing Regulation issued by the State and guided in this Circular; it should be consistent with the supply and demand relationship for clean water and the socio-economic development conditions of the country, region, and income levels of the people at different times; ensuring the rights and legitimate interests of water supply units and consumers; encouraging water supply units to improve service quality and strive to reduce costs, water loss, and revenue loss to meet customer needs, while promoting consumers to use water efficiently and encouraging investors to invest in clean water production, supply, and consumption activities.

2. The price of clean water consumption for water supply units does not differentiate by economic sector; nor does it differentiate between users whether they are organizations or individuals within or outside the country, but it is determined separately for different purposes such as: water for domestic use (taking into account support policies for poor households in ethnic minority and mountainous regions, coastal and island areas, border regions according to current national criteria); water for administrative agencies, public institutions; for production, business, and services, consistent with the characteristics of water consumption, water sources, and water production conditions in each region, locality, and area.

3. The price of clean water consumption is set according to the pricing determination principles stipulated in Clause 1 of this Article, in accordance with the principles, methods for determining prices, within the price range or limit prescribed by the State; however, it must be consistent with the water quality according to the current technical standards published or issued by competent authorities under the law.

4. In cases where the price of clean water consumption decided (or approved) by the People's Committee of the province or centrally administered city (hereinafter referred to as the Provincial People's Committee) is 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 full cost calculation principles, then the Provincial People's Committee must annually consider and subsidize from the local budget or have a reasonable support mechanism consistent with its authority and legal provisions to ensure that clean water production and supply units can cover their costs and operate normally, except for clean water produced from clean water projects invested in under the 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 fluctuate, or when there is a change in water treatment technology, service quality standards, or related state policies that cause the cost of clean water consumption to increase (or decrease), then the competent authority deciding (or approving) the price of water as prescribed in this Circular must consider adjusting the price range (or specific consumption price) accordingly.

Chapter III

DETERMINATION METHODS FOR CLEAN WATER CONSUMPTION PRICES

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

1. The reasonable and valid total production costs of clean water products serving as the basis for calculating the full 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 (excluding 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 zones, and economic zones - collectively referred to as industrial zones), each item of cost is determined as follows:

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

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

- The quantity of materials used for producing clean water is applied according to the economic and technical standards for clean water production published or issued by authorized agencies under the law. For materials introduced into production without established economic and technical standards by authorized agencies, the Chairman of the Board of Management or General Director/Director of the water supply unit shall establish norms within the pricing plan for clean water consumption to be submitted for approval by the provincial People's Committee.

- The material price is the actual purchase price according to the state-regulated price or announced/guided price at the time of calculation (for materials subject to state price regulation and management through registration, declaration, negotiation, or public information on prices) or market price recorded on invoices in accordance with the law of the seller at the time of calculation (for materials not included in the state-regulated or announced/guided price list), plus (+) reasonable circulation costs to the place of production and supply of water (if applicable).

b) Direct labor costs including monetary costs that water supply units must pay to direct production workers such as: wages, salaries, and allowances with wage characteristics, meal expenses, 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 working days according to the economic and technical standards for clean water production published or issued by authorized agencies under the law with the corresponding daily wage rate (the daily wage rate includes basic salary and allowances stipulated by the state).

- Meal expenses between shifts (if applicable) for workers participating in business activities 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 (outside the direct material and labor costs 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 expenses between shifts (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, external service costs, and other monetary costs included in the cost price according to the law.

The method for determining material and service costs, labor costs in general production costs is applied 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 costs of fixed assets serving the management and operation within the enterprise; labor costs, wages, allowances, and mid-shift meal expenses (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 body; office material and supply costs, tax, fee, and levy expenses, external service purchase costs under the enterprise's office; other common expenses for the entire enterprise such as interest payment expenses, inventory write-down provisions, bad debt provisions, hospitality, transaction expenses, scientific research expenses, technological innovation expenses, initiative and improvement expenses, environmental protection expenses, education and training expenses, medical expenses for the enterprise’s employees, expenses related to female workers, safe water supply expenses, and other management expenses according to current regulations. Enterprise management costs are allocated into product cost based on appropriate criteria for the enterprise's products such as clean water production, construction installation, and other products of the enterprise (if any); other management expenses according to current state regulations.

The method for determining material and service costs, labor costs, and depreciation costs of fixed assets 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 expenses related to the consumption of products and services, including: investment costs, including water meters and auxiliary equipment from network level III to the point of connection with customers, except where otherwise agreed by the parties; wages, wage allowances, mid-shift meal expenses (if any); social insurance; health insurance, unemployment insurance, trade union fees, and other expenses as stipulated for sales personnel; advertising costs; external service purchase costs, maintenance connection costs, and other expenses according to current state regulations. The method for determining each item of sales expenses 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 are specified by the People's Committee of the province at a certain percentage of total production costs, ensuring suitability with local actual water usage conditions.

3. For rural clean water, the contents of the expenses to be determined are as follows:

a) Direct material costs including raw materials, fuel, and material 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 total quantity of each type of material used with the corresponding unit price; wherein:

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

- Material prices are the actual purchase prices according to state-regulated 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 about prices) or market prices recorded on invoices of sellers at the time of calculation (for materials not included in the list of state-regulated 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, managed and operated by enterprises or public service units established according to state regulations to operate rural clean water business, then direct labor costs are determined according to the method for calculating direct labor costs for producing clean water in urban areas and industrial zones, specifically:

+ Labor costs and wages are calculated by multiplying the number of workdays according to the technical and economic standards for clean water production issued or promulgated by authorized agencies as prescribed by law with 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 expenses (if any) for employees participating in the business activities of the enterprise are implemented according to current state regulations;

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

- If water supply projects are handed over by the state to cooperatives, community residents, or individuals for management and operation, or if water supply projects are self-invested by cooperatives, community residents, or individuals for clean water business, then direct labor costs are calculated based on the results of discussions and agreements reached at the members' congress or based on agreements between the community residents using water and the water supply unit, equivalent to the average wage level of production and business industries in the local service and goods supply sector, and consistent with current state regulations.

c) Common production costs (if any) are calculated similarly to the common costs for producing and operating clean water in urban areas and industrial zones.

d) Enterprise management costs or water supply unit management costs (if any arise): to be calculated in the same manner as the management costs for producing and trading clean water in urban areas and industrial zones.

đ) Total cost of one smallest packaging unit (if any arise): to be calculated in the same manner as the sales costs for producing and trading clean water in urban areas and industrial zones.

4. When determining the total production and trading costs of a water supply unit, it must accurately and fully calculate reasonable and valid costs; exclude costs that cannot be included in the total production and trading costs as stipulated in the Pricing Regulation for Goods, Services issued by the Ministry of Finance and relevant laws.

Common costs not solely serving the production and trading of clean water but related to multiple operational fields within the water supply unit, and costs that must be allocated during the calculation period, shall be implemented according to accounting laws and relevant laws and regulations set forth in this Circular.

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

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 by the following formula:

Where:

a) Z_tb represents the average full cost of 01 cubic meter of clean water (unit of measurement: VND/cubic meter)³ average clean water price (unit of measurement: dong/mᶟ)³).

c) C_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} is the total reasonable and valid production and trading 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:

SLtp = SLsx - KLhh

Where:

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

- SLsx: is the production water volume. 

+ Production water volume of urban areas and industrial zones: calculated based on the planned extraction volume of each plant in the year, consistent with the water consumption needs approved by the People's Committee of the province (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 urban areas and industrial zones.

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

- 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 People's Committee of the province in accordance with actual technical conditions and management levels, and incorporated into the consumption price of clean water with a maximum rate not exceeding the following:

+ For water distribution networks in operation for less than 10 years: 23%;

+ For water distribution networks in operation for 10 years or more: 32%;

+ In cases where the water distribution network has been in operation for mixed periods (including both networks under 10 years and those over 10 years): 27%;

This loss rate must be monitored from actual production and business operations, and strict management measures should be taken to gradually reduce it to meet the 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: 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 People's Committee of the province in annual consumption pricing plans after this Circular takes effect lower than the maximum water loss rates above, the quota will be based on the water loss rate approved by the People's Committee of the province; at the same time, to encourage water supply units to reduce water loss rates, the approved water loss rate by the People's Committee of the province will remain stable for three years.

Water supply units that reduce their actual water loss rate below the approved level in the pricing plan will retain 100% of the revenue generated from reduced water loss rates, with 70% allocated to the development investment fund and basic construction capital, and the remaining 30% added to the reward and welfare fund of the water supply unit.

2. The average consumption price of clean water (excluding VAT) is determined by the following formula:

Gttbq = Ztb + (Ztb x P) 

Where:

a) Gttbq is the average consumption 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 margin. Based on the actual business conditions of clean water suppliers and local residents' income, the People's Committee of the Province sets a reasonable benchmark profit margin in the structure of the clean water consumption price as follows:

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

- For water supply units that only handle the production, extraction, and supply processes through wholesale water sales (or partial wholesale sales) to retail units for resale at regulated prices, the wholesale price is agreed upon by both parties. 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 aforementioned regulation.

The method for calculating the average consumption price of clean water outlined above is used to determine the average clean water price and serve as a basis for calculating the consumption price of clean water for different uses, ensuring that the consumption price for each use aligns with the average clean water consumption price.

Article 7. Method for Determining the Consumption Price of Clean Water for Each Purpose of Use

1. Wholesale price of clean water:

The wholesale price of clean water sold by the wholesaler water supply unit to the retail water supply units (units that sell clean water to another water supply unit for direct sale to end-users) and to the retail water supply units (units that directly sell water to end-users) when conducting wholesale sales of clean water shall be agreed upon to ensure that the wholesaler 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 on the price cannot be reached, either one party (or both parties) has the right to request the Provincial Department of Finance to organize price negotiation in accordance with the law.

2. Consumption price of clean water (excluding value-added tax) for each purpose of use:

a) The consumption price of clean water for daily living shall be applied based on a progressive pricing mechanism, whereby households using less water than the prescribed quota will be charged a lower price, and vice versa. For other purposes of use, a single pricing mechanism shall apply, but with different prices according to each specific purpose of use.

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

Based on the average consumption price of clean water determined in Article 6 of this Circular, referring to the framework of the consumption price of clean water for daily living as stipulated by the Ministry of Finance, and considering the structure of water consumption subjects in the locality, the specific consumption price of clean water for each purpose of use shall be determined appropriately, following the principle that the weighted average of all price levels equals the average consumption price of clean water. (For the wholesale price of clean water for daily living, the total average price shall not be lower than the minimum price and not higher than the maximum price in the framework set by the Ministry of Finance).

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

Gttthmđ = Gttbq X Httthmđ

Where:

Gttthmđ is the consumption price of clean water for each purpose of use

Gttbq is the average consumption price of clean water

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

b) For the amount of clean water for daily living used by households: Apply the price calculation factor according to the table above. If the number of people using water in a household (including collective housing) can be determined, then the price calculation factor shall be applied according to the water usage quota (in m3/person/month) as follows:

- From 1m3 - 2.5 m3/person/month SH1 0.8

If more than this level is used, then 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 households consuming clean water that have not been able to install water meters or in rural areas where communal water tanks are used at centralized locations, temporarily apply a fixed charge based on a monthly consumption of 4m3 per person, or 16m3 per household if the number of users cannot be calculated, based on the SH2 consumption price level.

In special cases, for localities where the main consumption of produced water is for daily living of households and the consumption price of clean water does not meet the maximum price calculation factor as prescribed, it is permissible to adjust the price calculation factor beyond the maximum limit for the first SH1 level to ensure that the average price calculation factor for clean water consumption equals 1.

In cases where students and workers renting houses (with a lease term of 12 months or more) whose landlords purchase water from the water supply unit to provide for these users, 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 residential water price to the landlord and guide the landlord to sell water to these users at the price applied to the landlord.

In cases where urban industrial area water supply units provide clean water for daily living to rural farmers outside urban areas as requested by water users, the consumption price of clean water shall be agreed upon based on the residential clean water price in urban and industrial areas.

c) For entities using clean water for other purposes such as administrative agencies, public service units, businesses engaged in production and service activities..., the consumption price of clean water shall be regulated by the clean water production and trading enterprise according to the approved pricing plan by the People's Committee of the province, but not exceeding the maximum price calculation factor stipulated in this Circular. Based on the maximum price calculation factor compared to the average price, and depending on the characteristics of clean water consumption and the ratio of different purposes of use in the locality, determine the appropriate price calculation factor.

In cases where water supply units in urban and industrial areas provide water to customers outside urban and industrial areas for other purposes as mentioned above, the consumption price of clean water shall be calculated based on the applicable price for each purpose of use in urban and industrial areas.

In cases where a customer uses only one water meter for multiple purposes under a single water usage contract, the water supply unit and the customer shall base their agreement on the actual water consumption to determine specific ratios for each purpose to apply appropriate water prices accordingly. If they cannot agree on specific ratios for each purpose, the price will be applied according to the main purpose as stipulated in the contract. Should they fail to agree on the main purpose, they must report to the Department of Finance to negotiate the price in accordance with the law.

For particularly difficult rural areas, ethnic minority regions, mountainous areas, coastal areas, islands, and border regions as defined by current state criteria, if the provincial People's Committee approves a lower clean water consumption price scheme than the full cost pricing scheme currently prescribed, to align with residents' payment capacity, the provincial People's Committee shall implement policies or mechanisms to harmonize water prices between urban and rural water supply units within the same water supply entity (rural water supply units dependent on urban water supply units) to ensure balanced urban and rural water prices. For provinces unable to harmonize water prices between urban and rural water supply units due to legal restrictions on enterprises, the provincial People's Committee shall annually subsidize from the local budget to ensure the legitimate rights and interests of the water supply units. The mechanism, procedures, and processes for subsidies shall be specifically regulated by the provincial People's Committee to suit local conditions without contravening current national budget management regulations.

Chapter IV

TDETERMINATION OF CLEAN WATER CONSUMPTION PRICES

AND MANAGEMENT OF CLEAN WATER CONSUMPTION PRICES

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

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

Clause 2. Clean water supply units shall base their pricing schemes for clean water on the framework for clean water consumption prices established by the Ministry of Finance; pricing regulations issued by the State; principles and methods for determining water prices as stipulated in this Circular, and submit these schemes to the Department of Finance for review, in coordination with the Department of Construction and the Department of Agriculture and Rural Development, before presenting them to the provincial People's Committee for decision and approval.

Article 9. Authority to decide on clean water prices

Clause 1. The Ministry of Finance shall establish a framework for clean water consumption prices applicable nationwide.

Clause 2. The provincial People's Committee shall approve pricing schemes for clean water submitted by water supply units and issue specific clean water consumption price lists for the province in line with the framework set by the Ministry of Finance. In special cases such as saline intrusion areas, coastal areas, areas with difficult water production conditions, and higher costs for producing and supplying clean water than the maximum price in the framework established by the Ministry of Finance, the provincial People's Committee may decide on clean water consumption prices based on actual circumstances but not exceeding 50% above the maximum price in the clean water consumption price framework established by the Ministry of Finance.

The provincial People's Committee shall guide the authority to manage and set water prices for self-flow water supply facilities, small-scale water supply facilities managed by communities, and water prices in rural areas where communities independently agree on investments for water production and business operations.

Clause 3. Water supply units may independently decide on clean water prices for purposes other than daily use, provided that these prices are consistent with the approved clean water pricing scheme by the provincial People's Committee.

Chapter V

IMPLEMENTATION

Article 10. Implementation Organization

Clause 1. The Ministry of Finance, in collaboration with the Ministry of Construction and the Ministry of Agriculture and Rural Development, shall periodically or urgently inspect the establishment and issuance of regulations on managing clean water consumption prices at local levels and the development of pricing schemes; compliance with water pricing laws by water supply units as stipulated in this Circular.

Clause 2. The Department of Finance, in collaboration with the Department of Construction, the Department of Agriculture and Rural Development, and related departments, shall inspect the implementation of clean water consumption pricing decisions, the development and implementation of clean water consumption prices for different user groups locally, advise the provincial People's Committee to promptly address 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 pricing framework when necessary.

Clause 3. Water production and business units must plan to develop water sources and distribution networks to meet consumption needs, improve water service quality; regularly monitor and check water consumption, collect water fees accurately and appropriately for each user group; promptly take measures to address water leakage and revenue loss.

Clause 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, in collaboration with the Ministry of Construction and the Ministry of Agriculture and Rural Development, shall study and amend the method of determining clean water consumption prices as needed.

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, issued by 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 clean water consumption prices in cities, industrial zones, and rural residential clusters.

During implementation, any difficulties or obstacles 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.