The rate of fare realization is too low
Excessive annual net loss occurrence
Hapcheon-gun, Gyeongnam Province will increase the water supply fees by 10% annually for five years from January next year until 2028.
This fee increase comes six years after the last hike in 2018. Hapcheon-gun's water supply revenue compared to the total cost for water supply coverage is very low, with a fee realization rate of only 27.79%, which is significantly below the Gyeongnam average of 66.56%. The increase factor is as high as 259.79%, resulting in substantial annual net losses.
Previously, Hapcheon-gun conducted a study on the realization plan for water supply fees in 2021 and planned to raise fees starting in 2022. However, the increase was postponed considering the economic difficulties faced by residents due to the prolonged COVID-19 pandemic.
An official from the county stated, “Since Hapcheon-gun’s water supply fee realization rate is very low, efforts to improve management, reduce costs, and increase water retention rates alone have limitations in raising the realization rate, making a fee increase inevitable. Despite the difficult economic conditions of our residents, we have no choice but to raise fees to ensure the sound operation of the water and sewage business. We ask for the understanding and cooperation of all residents and will strive to provide high-quality services to our citizens.”
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