Which rate structure charges a higher price as usage increases within defined blocks?

• A. Uniform Rate
• B. Seasonal Rate
• C. Decreasing Block Rate
• D. Increasing Block Rate

Answer: (D)

Increasing block rate pricing ramps up the price per unit as you move into higher consumption blocks. This means the more water you use, the higher each additional unit costs, which encourages conservation by making extra usage more expensive. For example, the first set of units might be billed at a lower rate, the next set at a higher rate, and so on, creating a stepped, rising price with higher usage. This differs from a uniform rate, which charges the same per unit regardless of how much you use; a seasonal rate, which varies with time of year rather than how much you use; and a decreasing block rate, which lowers the per-unit price as usage increases.