Recently, five ministries and commissions including the National Development and Reform Commission, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, the Ministry of Ecology and Environment, and the Ministry of Water Resources jointly issued the "Guiding Opinions on Improving the Sewage Treatment Charging Mechanism in the Yangtze River Economic Zone" (referred to as "Opinions" "), to further improve the sewage treatment cost sharing mechanism, incentive and restraint mechanism and dynamic adjustment mechanism of fee standards, and improve related supporting policies. The "Opinions" clarify four aspects, which will effectively speed up the transmission of sewage treatment costs to the terminal and improve the profitability of enterprises.

First, strictly carry out the supervision and review of sewage treatment costs, and improve the sewage treatment fee adjustment mechanism. Deploy the provinces of the Yangtze River Economic Belt to carry out a comprehensive survey of sewage treatment costs, in accordance with the requirements of the Yangtze River water pollution prevention and control objectives, according to the cost supervision and examination investigations, and based on the principle of compensating sewage treatment and operating costs, and taking into account the basis of local financial resources and social affordability. Establish a reasonable sewage treatment fee standard, and improve the dynamic adjustment mechanism of the sewage treatment fee standard.

The second is to implement differentiated fees and payment mechanisms. Encourage the exploration of the establishment of differentiated charging standards by classification and classification, and promote sewage pretreatment and pollutant emission reduction of polluting enterprises. Establish a sewage treatment service fee reward and punishment mechanism linked to the service content of treated water quality and pollutant reduction.

The third is to reduce the burden on sewage treatment enterprises. Sewage treatment plants are exempted from electricity price capacity (required) charges. Sewage treatment plants can voluntarily choose to implement peak-valley time-of-use electricity prices or flat-segment electricity prices to support sewage treatment companies to participate in power market-oriented transactions. Encourage sewage treatment companies to make comprehensive use of site space and adopt the "spontaneous and self-use, surplus online" model to build photovoltaic power generation projects.

Fourth is to explore new ways to promote the efficiency of sewage collection. Innovate systems and mechanisms, encourage all localities to promote the integrated sewage treatment operation model of the plant and network, carry out pilot reforms of the charging model, attract social capital to enter, accelerate the completion of the shortcomings of the sewage collection pipe network, and improve the operating efficiency of the sewage collection pipe network.

At present, the price adjustment cycle of most sewage treatment projects in the country is 3 to 5 years, and the adjustment of sewage treatment fees is relatively lagging. According to the dynamic adjustment mechanism of sewage treatment fee standards proposed in the "Opinions", the adjustment cycle of sewage treatment fees in the future may be changed to one year or less. Weber Consulting believes that this will increase the speed at which sewage treatment costs are transmitted to the terminal price, enable sewage treatment fees to better cover costs, increase the gross profit margin of corporate sewage treatment business, and make it more stable.

At the same time, the electricity bill of the sewage treatment plant accounts for about 40% to 50% of the total cost. The "Opinions" proposes that the preferential treatment of the sewage treatment plant in terms of electricity charges will also effectively reduce the burden on enterprises and improve their profitability. This "Opinion" will play a demonstration and leading effect on national sewage treatment, and it may be extended to the whole country in the future.