Understanding how water prices and the factors that influence them can help reduce bill costs and better comprehension of the systems in general. Electricity, water, and other energy sources in Canada are priced differently based on more obvious factors such as location or weather events, but there are many other factors that many don’t consider. We all know costs can vary significantly between areas, but there are overall factors that will impact rates and factors that you can change yourself that may impact your own water usage and rates at billing time.
It’s also important to keep in mind that water is different from electricity, as different things may affect one but not the other. You should have a better understanding of what affects water rates across the country and what you can do about the changing water rates in Canada by the end of this article.
Find below a list of the main factors that affect water rates across Canada.
Location and province
It should go without saying that location and where you are within the country make a difference in water rates, since if you’re more rural that can take more routing to get water to you, or depending on the province, the rates change as well.
Infrastructure
Cities and towns that continue using outdated infrastructure to source their water supplies are more prone to increased utility costs. Partly because some of the pipes can be over a century old, considering most pipes have a general lifespan of 70 to 120 years. The older the infrastructure itself, the higher the costs are, due to repairs and their frequency. It can cost up to $1,000 to repair one water pipe, and if that is the case, the city or town will have no real choice other than to increase monthly household water bills to compensate for the repairs needed on the infrastructure throughout the city.
Climate changes
Seasonal variations in water pricing are common in many areas across Canada. Some will implement tiered pricing structures that charge higher rates for excessive water usage during peak demand periods, much like in the summer months, where water is typically used much more often than in the winter months. These types of pricing changes aim to encourage water conservation during high-demand times.
Environmental concerns
Water rates can also be affected by environmental considerations, such as in areas where water resources themselves are environmentally sensitive, and pricing may reflect the need to protect ecosystems such as lakes, rivers, and aquifers. Higher prices are intended to help protect these ecosystems.
Government grants and subsidies
In some areas, government grants and subsidies can impact water pricing. Financial incentives can offset the costs of water infrastructure improvements and may result in lower prices. This can also tie into other economic factors and conditions, such as government changes and other policy changes, which can also change water rates and prices.
All of these factors can affect water rates, and there are ways to help your water bills, such as using less water and checking that your system is as water-efficient as possible. Most areas have only one retailer for water, and that cannot be changed currently. However, many Canadians can choose their electricity and natural gas plans, especially in less-regulated provinces like Alberta and Ontario.
Water bills are also different from natural gas and electricity when it comes to how the rates are organized. Alberta, for example, has fixed fees and variable fees built into the water rates, which change every month. These differences are:
Fixed Fees such as:
- Basic monthly water service charges for the cost and maintenance of your home or businesses water meter, as well as the costs of reading the meter monthly and issuing your bill
- Basic monthly wastewater treatment service charges that’s for the wastewater treatment services that treats and handles sanitary sewer water and other such treatments
- Monthly drainage service charges that cover the cost of maintaining the sanitary sewer and the stormwater system, which also has its own fee for stormwater charges that’s for collecting the unmetered water (rainwater or melted snow) that flows from properties into the sewer system and needs to be treated.
Variable fees that can change and can be influenced by users:
- Cost of water (basic service charge) used based on your water consumption. This covers the cost of drawing water from the water source, treating, pumping and delivering the water to your home, etc. An average urban household uses about 15.1 cubic metres of water each month.
- Wastewater charges are based on the amount of water consumed by your household each month
- Sanitary drainage charges for the cost of collecting and treating the wastewater for the amount of water consumed by your household each month.
It’s important to stay informed on your bills and rates, especially if you think that you might be overpaying or that your water rates are getting too high.
These factors can all affect water rates, and while they may seem out of consumer control, there are steps you can take to ensure that you’re using water in the most efficient way, such as installing meter efficiency valves and running professional water audits. EnergyRates.ca can help parse your way through power and natural gas rates in Canada to help you get the best rates while also informing you about changes in your province, while staying an unbiased and free platform for everyone to use. It’s available for residential, commercial, large commercial businesses, or even industrial energy consumers.
