The cost of water use can influence customer water demand, especially if the water rates are punitive for increasing and/or seasonal water use. Although there are issues with economic justice related to the implementation of tiered water rates or water budgets, these tools can be used by utilities if they develop and maintain accurate water user data. Of particular issue are the following:
- Developing inclining block rates that penalize residential customers with large families and/or large irrigable areas.
- Creating water budgets that do not accurately account for irrigable areas (typically solved with GIS).
Notwithstanding these issues, conservation-oriented rates have been developed and used effectively in numerous Colorado communities. More information regarding conservation-oriented rates is included in the CWW Guidebook of Best Practices BP 1 (which also includes information associated with metering, tap fees and customer categorization which are included elsewhere in the BMP Tool Box).