When it comes to collecting payments and maintaining stable revenue, water utility companies face many challenges. One of the most pressing of these challenges is the issue of ever-increasing water rates due to aging water infrastructures and rising treatment costs across the country. In fact, a 2017 research study from Michigan State University shows that water rates have increased by 41% since 2010. If rates continue to rise at this rate over the course of the next 5 years, it’s estimated that over 40 million households in the U.S. won’t be able to afford water.
This issue of affordability is one that looms large for the majority of water utility companies. When water rates rise drastically, utilities see delayed payments and, in some cases, customers are unable to pay bills at all. Since the utility is responsible for the costs associated with maintaining and treating water regardless of the revenue they collect, this leads