Effect On Consumption
There is disagreement as to the effect of metering and water pricing on water consumption. The price elasticity of metered water demand varies greatly depending on local conditions. The effect of volumetric water pricing on consumption tends to be higher if the water bill represents a significant share in household expenditures. There is evidence from the UK that there is an instant drop in consumption of some 10% when meters are being installed. In Hamburg, Germany, domestic water consumption for metered apartments (112 liter/capita/day) was 18% lower than for unmetered apartments (137 liter/capita/day) in 1992. The municipal utility Hamburger Wasserwerke GmbH had installed more than 40,000 water meters in individual apartments of older houses since 1985. All new apartments had to be metered by law. Previously there had been only a single meter for the entire house in multi-apartment houses.
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