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HOME owners are being rewarded for cutting water use with inflation-busting rises in their bills.
One water firm is proposing a 10.2 per cent increase in costs from April.
It blames “reduced demand for water from metered customers” during the droughts and heavy rainfall of the past four years which resulted in less income.
Another group in drought-prone southern England also admitted revenues have dipped because customers are using water wisely.
“Customers seem damned if they do and damned if they don’t.”
OGDEN, Utah – A Utah homeowner was billed for 1.4 million gallons of water for part of last winter, and even though Rick Baur disputes it, he paid the bill. Advertisement "I was blown away," said Baur, an Ogden resident who made good on the $9,700 bill in August after the city shut off his service for nonpayment. "It's enough to buy a used car." That much water, the Standard-Examiner calculated, is enough to fill a swimming pool at Ben Lomond High School seven times - or a typical home pool 70 times. The bill was for Dec. 19 to April 4, typically when residential water consumption is at its lowest of the year. Baur said he irrigates only about a third of his 2-acre parcel and could never use that much water in any season. What's more, he and his wife didn't use any water at home from mid-December to early January because they were vacationing in the Virgin Islands. "Something strange is going on," said Craig Frisbee, the city's water utility manager, who said he might issue Baur a hardship credit but nonetheless defended the billing. "When water goes through a meter, they (customers) are obligated to pay for that."
Originally posted by hinky
The water companies have experienced rapid rise in chemical costs for the chemicals used to treat water. Chances are, their utility costs have risen also from electric rate hikes. These costs need to be spread among their customers.
There is a down side to conserving water, it cost more per unit, so the cost again has to be passed to the customer. As a side note, expect sewer rates to increase as these are usually based on water consumption. Cities will raise taxes to offset losses from a drop in sewer tax.
Water rates are either progressive or regressive. A progressive rate is the water will get cheaper the more you use. This is for large industrial customers and businesses like car washes or laundromats. Regressive is the opposite, the water will get more expensive the more you use. This rate is usually place on residential services to help encourage conservation.
You might want to ask about the rate structure.