Water prices vary from place to place and country to country. While the economic standings of the people within each country needs to be taken into consideration when determining a tariff, there are other key factors that play into whether a tariff is added, increased, or decreased. A water tariff is a price assigned to the water that is supplied to customers through pipe lines. While the tariff does not pay for the water itself, it does pay for the costs of the water treatment, water storage, transporting the water, collecting the water, and treating the water waste.
Tariffs help the government control the water that each person uses by making it cost for use, and a customer can only use how much they can afford to pay. Most people do not stop to realize how much water they really use on a day to day basis, so a lot of people over use. A person uses water every time they bath, use the bathroom, brush their teeth, and many other things, but they never stop to realize that it all builds up to cost a large sum of money. Another thing that plays into the cost of tariffs on people is how much they use and what type of a building they are getting the water into, such as a residential or commercial building. There are some advantages to raising or creating a tariff on water, but there are also some disadvantages. Some advantages of a block tariff that a lot of countries use are that it allows poorer families access to affordable water, promotes water conservation, and ensures cost recovery. This type of tariff would be an excellent way to incent the people of United Arab Emirates to be more conservative with their water consumption. The United Aram Emirates citizens do not have to pay a very noticeable water tariff, so a lot of the citizens over use water daily. Adding a larger water tariff could help the citizens realize that they are over using, which cause them to lower the amount of water they use.
In the United Arab Emirates, a residential citizen on average in one day uses 2.60 average daily consumption per 1,000 liters. The government customers use on average 10.41 average daily consumption per 1,000 liters. Agricultural business, such as ranches, use 3.13 average daily consumption per 1,000 liters. Industrial customers use 7.84 average daily consumption per 1,000 liters. Commercial customers use 7.84 average daily consumption per 1,000 liters. These numbers are on the higher range, and the United Arab Emirates are all bad for overusing water, which causes water shortage problems. (“Water & Electricity Tariffs 2017)
Meanwhile, in Australia, the numbers are very different and the prices that are charged are much higher. A residential customer uses about 1,899 gallons yearly, which is 7,188.497 liters. An industrial customer uses about 2,014 gallons yearly, which is 7,623.819 liters. An agricultural customer uses 9,604 gallons yearly, which is 36,355.09 liters. Even with these large amounts of water being used, the average cost of a water bill is 0.002318 dollars per liter used. (“SAWater – Residential Water Prices”; “4610.0 – Water Account, Australia, 2015-16”)
In the United States, the amount of water used is super high with all the of the people to the square feet of livable land. A residential customer uses on average 3,600 gallons of water a day, which is 13,627.48 liters. An industrial customer uses on average 15,000 gallons of water a day, which is 56,781.177 liters. An agricultural customer uses on average 9,420 gallons of water a day, which is 35,658 liters. In the United States, the average typical family spends anywhere from 15 to 77 dollars monthly on water. (“Estimated Use of Water in the United States in 2010”; “What is the Average Cost of Utilities? – Nationwide”)
When you compare these factors between the United Arab Emirates, the United States, and Australia, you see that there is some major differences in the amount of water used as well as the amount of money spent on water. These figures show that the United Arab Emirates use more water then what they should yet they do not suffer from large water tariffs. These other countries suffer from larger tariffs, which help them regulate the amount of water they use, yet it does not harm the people in any way to pay the water tariffs. Yes, some people struggle with the costs of water, but if the government puts the right kind of tariff on the land, such as a block tariff, the people will still be able to afford the water. Tariffs help rebuild the economy of the country by increasing the amount of money coming into the government. A larger tariff would do the United Arab Emirates government and citizens a world of good by regulating the amount of water that is used. A lower amount of water that was used would be beneficial for the environment, which would save a lot of other resources, such as animals. With more money coming into the government, it would help to stabilize the economy for the citizens and government.