Thursday, January 27, 2011

2011 Proposed Water Rates Charge Effect on Residential Consumers based on Annual Usage

It is interesting to note that the customer who uses 20m3 of water per quarter has the highest percentage increase of 58.86% and the highest absolute $ increase of $118.12 until you reach the consumer who uses 140m3 per quarter (7 times as much) who does pay a few dollars more in absolute terms.( $122.92)

The lowest $increase of $64.12 goes to those consumers who either use no water or have a vacant lot which has access to water but this represents a 31.95% increase over 2010 rates.

The decision to try to get 50% of the revenue needed from the base fee and the other 50% from consumption fee was introduced to provide more certainly of revenue.The decision to not give a certain amount of water free in the base rate (20m3 in 2010) has provided the anomaly of the low water consumer forking out more this year than a person who consumes 7 times as much as he does.

These rate changes are not ready for prime time. Back to the drawing board.

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