Rates, pricing and public education

About 55 percent of Canadians served municipal water pay in ways that do not promote conservation. A 2001 study of rate structures by Environment Canada showed that in 1999, 43 percent of the population was under a flat rate structure (where the charge or assessment is fixed, regardless of the amount of water used). Another 12 percent were under a declining block rate structure (where the consumer's bill rises at a slower rate as higher volumes of water are used); i.e., the more you use, the less you pay per unit.

Only about 45 percent of the population served was found to be under a rate structure that provided a definite incentive to conserve water: 36 percent were under a constant rate structure (where the bill to the consumer climbs uniformly with the volume used); and 9 percent were under an increasing block rate structure (where a successively higher price is changed as larger volumes of water are used).

Introducing conservation-oriented pricing or raising the price has reduced water use in some jurisdictions, but it must be accompanied by a well articulated public education program that informs the consumer what to expect.

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