BEIJING, Dec. 19 (Xinhuanet) -- China will commercialize in two years the decades-old welfare house heating system for urban residents in state-owned enterprises and governmental organizations in Winter.
According to a decision jointly issued by eight Chinese government departments, northern China's urban residents who used to enjoy free heating of their residential houses will pay heating bills by themselves.
For years, urban residents working in state-owned enterprises and governmental departments lived in apartments belonging to their work units, who paid the house heating fee during the winter period.
The welfare system has many problems including waste of heating resources and heavier burden for enterprises as a result of rising water and coal prices.
"The government will stop the welfare heating system and allow heating companies to charge the individual subscribers directly,(like the payment of electricity and water)" said the document made by the eight ministries including the National Development and Reform Commission, the Ministry of Finance, the Ministry of Civil Affairs and the State Environmental Protection Administration.
At present, about 90 percent of thermoelectric plants are losing money because the prices of major heating materials, such as water and coal, have climbed sharply in recent years. In comparison, the heating charge remains at the original level.
Water price has increased by 30 percent in five years. The coalprice has grown from 2001's 69.3 yuan (8.7 US dollars) per ton to present's 205 yuan (25.6 US dollars) per ton.
The new decision said the government will adjust the price of heating in accordance with the exchanges of heating materials' price. If the fuel prices grow 10 percent or above within a year,the heating price will be adjusted accordingly.
The government encourages various forms of funding and operation in heating market, especially private ones.
As for those who have low income, the document said, the government will provide subsidies, fulfilling the government's role of taking care of disadvantaged members in the society.
Meanwhile, the document encourages the exploration of other forms of heating, especially clean energies such as terrestrial heat and solar heat.
China provides Winter heating in urban areas north of the Yangtze River for years, usually through water pipes heated by boilers. Farmers in northern China's rural areas have heated themselves due to their scattered inhabitance. Enditem
