In America, "new" water pricing models are being proposed. “While other common goods like roads and libraries are funded collectively through fees, tax revenue, and combination of the two, water services are funded by individual customer payments,” according to the report. “Water and wastewater utilities rely almost exclusively on revenue from residential, commercial, and industrial customers within their service areas.”
With some $4.92 billion in annual revenue loss due to unpaid bills for the water sector, many utilities have turned to customer assistance programs like flexible payment options to avoid shutoffs for lower-income consumers. But many within the industry argue that this is not a fundamental solution to the problem.
Instead, the US Water Alliance proposes the use of “innovative pricing models” that would see water bills decrease for most low-income households and increase for higher-income households through property-based charges that account for things like parcel areas, building footprints, property values, and more.
“By developing rates that are affordable for everyone, utilities can collect more revenue from customers who can afford to pay without burdening those who cannot,” according to the report. “Changes to rate and pricing structures automatically reach everyone: there is no need to apply or enroll, or to track customer data and manage programs.”
