Core Viewpoint - The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have issued guidelines to improve the pricing mechanism for domestic natural gas pipeline transportation, aiming to enhance efficiency and promote high-quality industry development [1][2]. Pricing Mechanism - The pricing for domestic natural gas pipeline transportation will be set by provincial development and reform departments, with the authority to set prices not being delegated further [1]. - A unified pricing model will be implemented, transitioning from "one line one price" and "one enterprise one price" to either zonal pricing or a unified provincial price, facilitating integration with inter-provincial pricing mechanisms to create a "national network" [1]. - The pricing will be determined based on the "permitted cost plus reasonable return" method, with specific parameters outlined for pricing [1]. Infrastructure Management - Provincial energy authorities are required to take unified responsibility for the planning of domestic natural gas pipelines, optimizing layout, reducing transportation layers, and avoiding redundant construction [1]. - There will be stricter scrutiny of investment project approvals to control unnecessary intermediate links that hinder effective resource utilization, promoting centralized operations and improving pipeline efficiency [1]. - The guidelines also address reducing supply costs and regulating market order to promote fairness and openness [1]. Future Actions - The NDRC and NEA will guide local authorities in systematically assessing the construction, operation, and pricing management of domestic natural gas pipelines, aiming to refine relevant policies and implement them in a steady and orderly manner [2].

Core Viewpoint - Shenzhen plans to hold a public hearing on water price adjustments on April 11, 2025, proposing to increase the comprehensive water price from 3.45 yuan per cubic meter to 3.90 yuan per cubic meter, representing a 13.05% increase, which is a significant development following the water price hearing in Guangzhou last year [1][2] Group 1: Water Price Adjustment - The current water price in Shenzhen has been in effect since July 26, 2017, and the upcoming adjustment is expected to influence surrounding areas, enhancing the public utility attributes of the water sector [2] - Comparatively, several cities around Guangzhou and Shenzhen have not adjusted their water prices for years, with Foshan last adjusting in 2016 and Zhongshan in 2012 [2] Group 2: Pricing Methodology - The pricing of residential water is determined based on a "permitted cost plus reasonable return" method, where the permitted cost serves as the foundation for price adjustments [3] - The pricing authority is required to conduct cost audits and maintain cost transparency, establishing a regular cost audit system to determine pricing costs [3] Group 3: Regulatory Framework - In 2021, the National Development and Reform Commission introduced policies allowing water prices to be adjusted every three years, providing local water companies with the potential for price increases [4] - The revised regulations clarify pricing principles, methods, and adjustment procedures, emphasizing timely adjustments based on cost assessments [4] Group 4: Investment Opportunities - Although there are no publicly listed companies operating Shenzhen's water services, the price adjustment is expected to benefit three categories of companies: 1) Urban water operators in the Greater Guangzhou-Shenzhen area, with a focus on companies like Hanlan Environment (600323.SH), Shunkong Development (003039.SZ), and Zhongshan Public Utilities (000685.SZ) [5] 2) Other water operators in Guangdong and raw water suppliers in Shenzhen and Dongguan, with a focus on Yuehai Investment (00270) [5] 3) Undervalued water companies in other regions, with a focus on Xingrong Environment (000598.SZ) [5]