Water prices not rising enough to reward conservation

In "Australian cities have no drinking water shortage" I suggested the price of water should be doubled over five years to reward those who conserve it. Unfortunately this has proved politically unpalatable in Queensland:

THE Queensland Government has been forced to limit its wholesale water price rises to placate angry residents while also pressuring councils to allow a takeover of water infrastructure in southeast Queensland.

After the Queensland Water Commission last week called for $9billion in new water infrastructure to be fully funded out ofhigher charges, Deputy Premier Anna Bligh acknowledged yesterday that it was "too much, too soon".

... "Instead of price rises doubling within five years, going from $350 to more than $700, we will see them rise by about $175 over that five-year period," Ms Bligh said of the 50 per cent wholesale price rise. ...

From Limits on rises in water prices, Sean Parnell, The Australian, March 14, 2007