Sunday, September 20, 2009

Zetland: Lesson Not Learned











Zetland (Aguanomics) recounts a common water supply problem (like the one here in Israel):

(1) Water agencies ask customers to use x% less water, often increasing restrictions on water use. (Illustration: Water Saving Campaign in Israel, showing how celebs's face dries out. Horrible)
(2) Customers cut use by 2x%, reducing agency sales below projections based on x% reductions.
(3) To cover the gap between revenue and expenses, agencies raise prices, reduce services and/or tap reserve funds -- upsetting customers who feel they are being penalized for cutting back.


(4) Water agencies cut back on conservation programs, hoping that customers will use more water (!) and thus provide revenue...

Our problem: Israeli water supply is managed by an entrenched monopoly that is not sensitive to market economy.

5 comments:

Ronduck said...

A few weeks ago you stated that a family of four gets allocated 3 cubic meters of water a month, and every m3 more than that runs $6. What is the base charge for the first 3 cubic meters?

J said...

About 2 $ (1 $ for water, the rest sewage)

Ronduck said...

Ok, give me a day or two and I'll post a summary of my water bill from the city of Mesa. I have to run though.

Ronduck said...

Ok, I downloaded my current bill from the City of Mesa which includes water sewer and trash combined. My total bill for all services is $74.49 for the perod running from 8/21-9/22 is $74.49.

Here is my bill broken by type of service:

#######
Water usage: 5 kilogallons.
water charges:
*Connection size service charge: $13.69
*W1.1 Residential Western Zone $11.50
*State Superfund Water Use Tax $0.03
*Total Taxes $2.03
*Total Water Charges $27.25

#######
Wastewater
*S1.1 Minimum Charge $10.49
*S1.1 Residential Inside City $9.87
*Total Waste Water Charges $20.36

#######
Solid Waste
*R1.2 Res 90 Gal Trash/Recycle Svc (1.00 units) $23.34
*Mesa Clean and Green Fee (1.00 units) $0.54
*Total Solid Waste Charges $23.88

#######
Other Fees
*Federal Environmental Compliance on 9/23/09 $3.00
*Total $3.00

Ronduck said...

I used to live in an apartment complex and I was billed for these services separately. Since my apartment did not have an individual meter I was assigned a portion of the common water bill based on the number of water fixtures and the number of tenants in my apartment. Since I did not report my mother and brother had moved into my apartment I was paying about $25/month for water, sewer and trash. Had I reported my two relatives my bill would probably have been about $40.