Thursday, February 17, 2011

The More You Use The More You Pay - Water goes to Rising Block Rates


The Greater Vernon Advisory Committe has recommended Rising Block Water Rates. This is a system where there is an escalating charge for increasing amounts of water consumption in each of the four quarters in a year. Utilities Manager, Al Cotsworth says Rising Block Water Rates also encourages water conservation.  The GVAC has also recommended that the quarterly Base Fee be increased from $50.17 per quarter in 2010 to $66.20 per quarter for 2011. For 2011, the quarterly Base Fee will include the initial 10 cubic metres (m3) of consumption. The implementation of higher Base Water Rates is to ensure an adequate fixed income to operate the water utility.  The fixed costs to operate the utility are in the order of 80% of the total operating  costs, therefore an increase to the fixed revenue will enable more effective operation of  the water utility.  Commercial and industrial water cost will remain at $ 0.92 per m3 for all water use but the base and minimum fees are increased by 20%. Agriculture rates will increase by 5%. Vacant Lot fees have increased from $31.77 to $66.20 per quarter.

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