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Water and Sewer Charges: Rate Structures


Background

The City of London reviewed its rate structure for potable water, sanitary sewer collection and treatment, and storm drainage over the last few years. The rate structure for these three essential services affects all customers in the residential, commercial, institutional and industrial sectors. Funding for these services is recovered through rate charges from those who use the service - that is, a "user pay" system. Customer's consumption of water and sanitary sewage generation is measured by the water meters installed on the water supply piping entering your home or business. Storm drainage costs are recovered as either a flat rate or area rate charge based on the area of the property. Billing for these services is undertaken by London Hydro and is included on your hydro bill. These services are not included as part of your municipal property tax bill.

The review and recommendations were intended to create a fair and consistent rate structure for all three essential services. The new rate structures would still result in residential customers paying higher rates than industry, institutions and commercial customers as they are responsible for more of the infrastructure costs. These proposed changes would be above and beyond the previous 5 per cent reduction in residential rates that occurred in 2006. The 2006 reduction to residential customers shifted costs to industrial, commercial and institutional customers, increasing their rates by 3 to 6 per cent. Any changes made to the rate structures are intended to be revenue neutral.

The suggested Water, Sanitary and Storm Sewer Rate Structures continue to place London in the position of Setting the Standard with respect to pricing and delivery of these services and maintain London's Advantage of abundant and secure high quality water. It is further recognized that a water conservation rate should be continued for the residential sector to support the City’s efforts toward Conserving the Future. The rate structure that is ultimately implemented must strike a balance among all the principles used in its development.  It must achieve a structure that is transparent, cost effective, easy to maintain and ensures a sustainable future for all customers. Securing Tomorrow for the residents and businesses of London, through the proper financing and maintenance of these essential services, remains our primary focus.


Further information

New ...

Slide Presentation - Water, Sanitary & Storm Recommendations July 16, 2008
Water Sanitary and Storm Rate Structure Review, Board of Control Meeting July 16, 2008

 

Background information - Previous reports and presentations

Update of Rate Structure Study, submitted to Board of Control Meeting May 7, 2008
Summary of Public Consultation including Responses by City Staff, compiled May 7, 2008
Summary of Concerns coming out of Consultation, Board of Control Meeting November 14, 2007
Minutes of Meeting, Board of Control Meeting, November 14, 2007, Item #30
Summary of Consultation, Board of Control Meeting August 8, 2007
Slide Presentation at June 19, 2007 Stakeholder Meeting
Slide Presentation at July 4, 2007 Stakeholder Meeting
Water, Sanitary and Storm Rate Structure Review, Board of Control Meeting April 25, 2007
Rate Structure Review Slide Presentation at Board of Control, April 25, 2007
BMA Water, Sanitary, Storm Rate Structure Report, March 2007

The links below will take you to the current rate structures as described in the City By-laws.
Sewer System Fees & Charges By-law WM-26
Water Rates & Charges By-law W-7

Questions or comments? Need more information? 

Please phone, fax or  your questions/comments to:

Roland Welker, P. Eng.
Division Manager, Water Engineering
City of London
300 Dufferin Avenue, P.O. Box 5035
London, ON N6A 4L9
Office: 519 661-2500 ext. 5593
Fax: 519 661-2354