Hongkongers are facing a rise in water charges for the first time in three decades with authorities pointing to rising deficits while pledging to consider affordability and the economic status of residents before making any moves.

But the Water Supplies Department also said on Sunday it had not set a date for the increase to take effect, and that since last month it had been meeting representatives from the catering and laundry industries and would continue to discuss the issue with different sectors.

Back in January, then director of water supplies Tony Yau Kwok-ting said residents might have to pay more and that a review of the charges was under way with results expected within one to two months.

Responding to media inquiries on Sunday, the department said the review was a complex issue that required careful consideration.

When evaluating water charges, the government adhered to the “user pays” principle and cost recovery as the basis for its public utility policy, a spokesman said.

Multiple factors would be taken into account, including the public’s affordability, socioeconomic conditions, the operating account situation and the opinions of stakeholders.

Water charges – priced at up to HK$9.05 per cubic metre – have been frozen since 1995. The government also waived 75 per cent of water and sewage charges for non-domestic households such as care homes during the coronavirus pandemic.

The department said that over the past three decades, the number of users had significantly increased from 2.2 million to the current 3.2 million, requiring water facilities to be expanded to meet demand and resulting in rising costs.

The cost recovery rate in the latest operating accounts declined to 79 per cent, according to the department.

“To improve our operational condition, we need to adjust water fees,” the department said.

“However, water fees are a complex issue, especially considering that they have not been adjusted for nearly 30 years. So we should proceed with caution.”

It added: “If we decide to adjust the fees, we will recover costs in a gradual and phased manner, minimising impacts on users as much as possible.”

An outreach team was formed in April to engage with various trade groups and gather their opinions, including representatives from several catering and laundry associations.

Meetings with the food processing, beauty, hotels, and construction sectors are under way.

Any proposed revisions would also need to undergo the legislative process which lawmakers can flag their opinions, the department said.