Smart consumers may want to take conservation measures now, to save money if water prices rise sharply.
The Council of Canadians and MiningWatch Canada have released a copy of the draft report from Environment Canada that addresses a possible "looming freshwater crisis" on the horizon for Canadians. The report was widely covered in the news in August in regards to water security and possible tensions with the US due to increasing water needs. However, this is not the only topic the report addresses.
The report claims that water levels are expected to decrease in the Great Lakes region of Canada, "especially during the summer months". At the same time, the population of Canada is expected to grow around 15-20% over the next 25 years or so. The infrastructure needed to support municipal water needs is expected to "cost $70-90 billion over the next 20 years".
The report notes that "Canadian water prices are the cheapest of all OECD countries", and that the low prices have slowed down conservation efforts. At the same time, the document points out that "Water use decreases as prices rise".
According to the report, around 60% of Canada's GDP is basically dependent on water. In the Great Lakes region, there could be "significant economic impacts for the hydroelectric and shipping sectors and for the health of ecosystems" if the Great Lakes water levels drop. According to the report, "a 0.08-1.18 metre drop in Great Lake water levels equates to a $240-350 million annual loss for the hydroelectric industry alone".
In order to address these challenges, the report mentions "Economic Instruments" as a way to approach water quantity issues:
Placing an appropriate monetary value on water with benchmark rates of consumption could affect the way industries and households use the resource. Instruments such as metering or full-cost pricing are options for managing demand.
In addition, the report also specifically mentions "education and metering to promote conservation".
What This Could Mean for Households in the GTA
The City of Toronto is currently facing a repair tab of about $800 million for water pipes and infrastructure. In 2008, Toronto residents saw a 9.4% rate hike in water costs. Durham Region and Peel both saw around 9% increases, and Markham saw an 11.6% increase in the cost of water. At least some of these hikes are expected to become yearly occurrences for at least the near future.
If you were planning on purchasing that low-flow toilet, a water-efficient washing machine, setting up a rain barrel to water your garden, or getting in the habit of turning off the tap when brushing your teeth, then now might be an excellent time to take action. If these reports are correct and water prices do increase year over year, the eco-savvy household could end up saving dollars as well as litres - and that's always a nice drop in the bucket.
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