Australia Water Commission Considers Scarcity Pricing

AUSTRALIA – When water is scarce, Australians might face steep charges for usage rather than traditional restrictions imposed during times of drought. The National Water Commission is also considering locational pricing as an option to regulate water consumption, ABC News reports.

“The basic mechanism is that as prices go up, people will respond to that,” Commissioner Chloe Munro explains. “So it creates more choice. Our view is that there is a place for restrictions, but they’re a useful tool for managing extreme circumstances.”

Ms. Munro also emphasizes that people must have the right information, if the changes are to function fairly and effectively.