REDUCING DEMAND A VITAL STEP THAT WILL NEED PRICING SUPPORT

Tuesday, 19 October 2004 10:00

Environmentalists have welcomed today's announcement of measures to reduce demand for water by businesses and the community and have told the government that pricing reform will be needed to make it work.

Total Environment Centre (TEC) Director Mr Jeff Angel said, "requiring business, Government agencies and Councils to develop water conservation plans is a vital step toward curbing water wastage. It is vital that pricing mechanisms be introduced that reward those who save water with lower bills but punish water wasters who resist reform. This would put businesses on the same footing as households".

The Independent Pricing and Regulatory Tribunal recently recommended the introduction of 'step pricing' for residential customers to target high water users. Under this system customers would pay a higher rate per kilolitre if their consumption exceeds a preset level. A similar system should be used for businesses and industry by charging a higher rate to those whose water use exceeds efficient levels for their industry sector.

"Step pricing for industry would mean smaller bills for business that develop effective water conservation plans and punish industries that continue to waste water with higher charges. This will create a powerful incentive to save water and switch to options such as effluent reuse", Mr Angel said

TEC also welcomed the announcement of a demand management fund to support water conservation initiatives, water efficiency labelling and requirements that all existing homes sold after July 1 2007 be certified as water efficient.

"These measures will assist in changing behaviour and making homes and business more water efficient" Mr Angel said
"We will also be releasing a report card on the Government's announcements, this week", he said
 

For further information

Contact
:
Jeff Angel - Director
Phone
:
61 2 9299 5599
Email
:
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:
http://www.tec.org.au/