Water Supply Act Article 59

The pricing of water supply shall take into account the quality of water and a reasonable profit after deducting the costs from the income. The calculation formula and detail items shall be stipulated by the authority-in-charge; those stipulated by the municipal, county or city authority-in-charge shall be submitted to the central authority-in-charge for approval.Detailed pricing of water supply or any water rate adjustment proposed by a water supply enterprise shall be approved by the authority-in-charge; the proposal approved by the municipal, county or city authority-in-charge shall be filed with the central authority-in-charge for future reference.If it is negative growth of units used by a user compared to the same period in previous year, the water supply enterprise may give a discount to the user depending on profit or loss of the enterprise. The authority-in-charge shall establish the procedures altogether with water supply enterprise.The reasonable profit pursuant to Paragraph 1 hereof shall be assessed based on the fair value of investment, the interest rate of local banks, and local profit level.