As do local energy authorities. Our local water authority just boosted rates because of huge increasing costs do to--get this--a drastic reduction in water usage in my city. The drop in water usage over the last couple of years was over 10% (and there's a variety of speculation as to why including increased rainfall but also more efficient water fixtures and retrofitting water meters). So, less water use means everyone pays more.
Is there an emoticon for crazy on ET?
You're not paying for the water - the water is, absent effective taxation schemes, essentially free. What you're paying for is the capacity - that is, you're paying for the ability to get water whenever you want it. So when actual usage drops, the per-cubic meter price goes up.
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
