The upper tier rates are significantly higher than the base rate. What is the justification for these surcharges when water costs a fixed amount?
These increased rates in the upper tiers are not surcharges. The different tiers in the rate structure recognize that there are increased costs, primarily in the provision and development of additional water resources, related to higher levels of usage. In addition, the block 4 and 5 rates will provide a financial incentive if a customer uses more water than their monthly water budget. Increasing water rates based on usage is common practice in the water industry and is effective at discouraging wasteful water use.
- The upper tier rates are significantly higher than the base rate. What is the justification for these surcharges when water costs a fixed amount?
- What is the base rate for water and how are the water rates structured? Also, why do I have to pay for service if I am not here all year?
- How does the Bank of England base rate affect the retail banks rates?