公用环保｜广州水价价改落地，价格机制理顺有望提速

Core Viewpoint - The water price reform plan in Guangzhou will take effect on June 1, 2025, with a 29% increase in the first-tier residential water price and a 27% increase in non-residential water price, aimed at alleviating the financial pressure on local water supply companies [1][2]. Summary by Sections Water Price Adjustment Details - The new residential water prices will be set at 2.55, 3.82, and 7.65 yuan per ton for the first, second, and third tiers respectively, reflecting increases of 29%, 29%, and 93% compared to the current rates [2]. - The non-residential water price will rise to 4.40 yuan per ton, marking a 27% increase from the existing price [2]. Financial Performance of Water Supply Companies - Guangzhou's current water prices have not changed for over a decade, leading to continuous losses for local water supply companies, with profits dropping from 333 million yuan in 2017 to a loss of 334 million yuan in 2023 [3]. - Excluding other income, the losses have increased from 188 million yuan in 2017 to 500 million yuan in 2023, indicating a worsening financial situation since 2019 [3]. Cost Transmission Mechanism - The lack of an effective cost transmission mechanism is identified as a core reason for the declining profitability of Guangzhou's water supply companies [4]. - The implementation of the new management measures in October 2021 aims to enhance the market-oriented nature of water pricing and establish a regulatory cycle of three years for urban water pricing [4]. Historical Context and Future Implications - Historical data suggests that price adjustments in major cities catalyze broader water price reforms across the country, with recent adjustments in cities like Shanghai, Nanjing, and Shenzhen indicating a trend towards faster price mechanism alignment [5][6]. - Since the introduction of the new management measures, 39 cities have adjusted their water prices, with 32 cities making changes in 2023, 2024, and early 2025, which is expected to improve the long-standing low returns in the water supply industry [7]. Investment Strategy - The ongoing improvements in water pricing policies and the alignment of industry pricing mechanisms are anticipated to enhance overall returns in the water supply sector, benefiting water operation assets significantly [9].