The Theory of Water and Utility Pricing - Global Drinking Water Management and Conservation - page 98

Table 5.7 Water pricing structure for residential and nonresidential consumers (Beecher and
Kalmbach 2013 )
Basic rate structures Residential percent Nonresidential percent

Decreasing-block 35 44 48 60

Uniform 30 38 25 31

Increasing-block 14 18 5 6

Combined-block 1 1 2 3

Total 80 100 80 100

Table 5.8 Conservation and assistance policies (Beecher and Kalmbach 2013 )
Number of systems percent

Conservation information/tips 57 71

Payment assistance 21 26

Low-income discount 9 11

Senior discount 8 10

18

16

14

12

10

8

6

4

2

0

0 CF 500 CF 1k CF 3k CF 50k CF 1,000k

CF

2,000k
CF

Fig. 5.6 Fixed charges vary by the quantity of water usage in cubic feet (CF) (Reproduced from
Beecher and Kalmbach 2013 )

(f) Finally, Beecher and Kalmbach pointed out pressure on water prices is due to

the movement toward cost-based and more ef

“

cient prices, exacerbated by
historical underpricing by some nonprivate systems, loss of subsidies and
transfers, and flat or declining demand. ”

The overall picture shows that for the US as a whole, water is typically publicly
provided by a local municipality. All water systems have prices that cover full capital
and operating costs. About 20 percent of the utilities in the Great Lakes Basin sample