03/03/2010

Summer/winter dual charging for water


Photo: Southern Water Durrington HQ
Southern Water has announced plans to start charging its customers more for water in summer than winter. The plans only affect customers with new dual charging meters. But is this likely to make a real difference to water consumption?

While there is good evidence that, at least in the short term, installing a water meter reduces consumption, it is less clear that long term having a meter makes any real difference to consumer behaviour. Is water demand really in economists jargon elastic to price? Apart from water usage by hose pipe, which is often banned in water stressed areas, how can a customer change demand between summer and winter? Can customers really use the toilet and shower, less in summer? 

Surely a more effective way to reduce usage is through changes to the building regulations, such as the installation of low flow taps.  The concern has to be that this new dual charging scheme will just antagonise customers and achieve no real reduction in demand.   

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