An Analysis of the Revision of the Water Rates Considering Municipal Mergers

Abstract

　The delocalization and consolidation of water supply industries have been frequently executed with fiscal decentralization confining municipal mergers. The water rates must be unified after the consolidation of those industries in a particular region. In reality, most water supply industries have not revised those rates for many years.Consequently, there will be some problem to be inequality of the water rates in a particular region. This paper analyzes the revision of the water rates considering municipal mergers. As a result of analysis, municipal mergers contribute to progress the revision of the water rates. Also, the revision of the water rates and operating profit have strong negative correlation. In conclusion, this paper want to say that if most water supply industries are the self-supporting accounting systems, they will not execute the revision of the water rate. So, the inequality of water rates in a particular region will not be solved in the future.