English and Welsh water firms consider surge pricing during drought

Water companies in England and Wales are exploring a new pricing model allowing bills to increase during drought periods by factoring in water scarcity, similar to surge pricing. The proposals, being considered by regulator Ofwat, follow recent criticisms of rising water bills and environmental concerns over water management, especially amid a hot, dry summer leading to drought declarations. Several companies are already trialing flexible tariffs, such as seasonal or consumption-based pricing, aimed at reducing demand and promoting water efficiency.

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