Meters may cut water waste

Would alert homeowners to true cost Report urges end to ‘inefficient’ pricing

OTTAWA— Meters that charge the true cost of providing water should be attached to more Canadian homes, says an internal report for the federal Finance Department. Canadians are among the world’s most wasteful citizens when it comes to water — and meters would make them think twice about using so much, says the draft study.

“Current water pricing policies in Canada are generally inefficient, and . . . the potential exists for significant savings and increased revenues to Canadian municipalities through reductions in water consumption,” says the July 2005 draft study, obtained under the Access to Information Act.

“While the relatively significant start- up costs may serve as a deterrent to water metering, the long- term efficiency gains associated with full- cost recovery make metering a worthwhile investment.” The vast majority of municipalities across the country charge users far less than it costs to provide clean water, and fullcost metering could mean hefty increases in water bills for many Canadians. In Nova Scotia, for example, cities, towns and villages charge on average just 26 per cent of the real cost of providing water — the lowest ratio in Canada. Even in Alberta, whose water utilities come closest to full charging, average revenues are only 74 per cent of the cost. More than a third of Canada’s utilities charge a basic flat fee for water, and consumers in those places understandably use more water than those who must pay for each litre they use. Some of Canada’s biggest cities — Calgary, Toronto and Vancouver — still have no universal metering system.

“ This situation encourages excessive consumption on the part of households and businesses,” says the report. Installing meters and charging full price could drop water usage by as much as half, and allow municipalities to postpone or even cancel expensive expansions of their water systems.

In Canada, responsibility for drinking water generally falls to the provinces. One exception is native reserves — the Kashechewan crisis in northern Ontario is a recent example of a botched federal project to provide healthy water to an aboriginal community. But Infrastructure Canada, the giant fund that doles out federal money for construction projects, can also set terms for receiving money — and

is pressing municipalities in all provinces to

adopt full- price water

meters.

“We’ll require pricing on a full- cost recovery basis, if possible,” said spokesman Louise Payette. “ In some cases, it may not be possible because metering, or full- price recovery, would result in costs being too high. There is some flexibility — every project is different.” The federal government has committed $700 million to water projects across Canada since 2000.