Charlottetown hopes a rate hike will entice the last few holdouts to switch to water meters

The City of Charlottetown wants to increase water rates for residents this year in an effort to encourage the last remaining customers to switch to water meters.

The city's water and sewer utility has applied to council for a three per cent quarterly rate increase for all customers, to match inflation.

But the biggest change will be for residents who are still paying a flat rate for their water usage.

The utility is proposing that those customers pay an extra 25 per cent for the water meter incentive charge — an increase from $200 per quarter to $250.

The hope is the fee hike will convince the small number of residents without a water meter to make the switch, said utility manager Richard MacEwen.

Charlottetown's water and sewer utility manager Richard MacEwen hopes about 200 customers who don't have water meters will recognize they can lead to savings on their bills. (CBC)

"To encourage them to make that switch, we do charge an extra fee each quarter on their bill," he said. "[Water meters are] mandatory, so we do have some customers who have not yet agreed to make the change. This is an incentive for them to reconsider that decision."

Charlottetown brought in a new residential water meter program to encourage a reduction in water use in 2015.

The meters, combined with provincial regulations on low-flow toilets, showerheads and faucets introduced around the same time, appear to be having an effect on the city's water usage.

Charlottetown currently uses under six million cubic metres of water per year, down from 7.2 million cubic metres in its peak year, 2008.

"[It's] awareness and our customers recognizing the importance of conservation," MacEwen said.

"But also, every time you turn on a tap you're aware that the more water you use, the more you're paying [with a meter]."

'Maybe I would be better off'

While the number of customers who haven't signed on to the meter program represents a small percentage of the city's water users — about 200 customers out of 10,000 in Charlottetown — MacEwen said the goal of the incentive fee is to get everyone switched to the mandatory meters.

The city says 75 per cent of residents with water meters pay less on average than they did under a flat rate. (CBC)

"My speculation is they still feel a little concerned that they perhaps are using more water than our average customer, which is why we keep increasing this incentive to find that point where they recognize, 'OK, maybe I would be better off being a metered customer.'"

Depending on usage, he said, customers with water meters pay 75 per cent less on their bills than when they were on a flat rate.

Charlottetown council will need to approve or deny the water and sewer utility's rate increase application before the city budget is passed on March 31.