Why don't UK utility regulators use heavily progressive tariffs for essential utilities?
Why not make the first X units of a utility free or very cheap, then charge progressively more for higher consumption?
If calibrated correctly, couldn't this be revenue-neutral for the utility while:
- Reducing costs for low-income/low-usage households
- Making excessive consumption much more expensive
- Encouraging conservation of scarce resources
Malta does something similar with water.
What am I missing? Why isn't this more common in the UK?
u/andy4015 — 7 days ago