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The Indicator from Planet Money

The trouble with water discounts

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 10 October 2024

⏱️ 10 minutes

🧾️ Download transcript

Summary

The problem of how to price water is a perennial conundrum. Water is an essential limited resource that everyone needs, so how do you price it so everyone can afford it while making sure that utilities have enough revenue to fix their aging systems?

Today on the show, we find out why it's so hard to price water and how a city's solution led to a threat to cut off thousands of residents from a popular welfare program.

You can read more about the fight over water prices here.

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Transcript

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0:00.0

NPR I have in front of me a market conundrum in the form of two glasses.

0:17.0

Both look pretty much identical but they come with two very different prices.

0:22.0

One cost about a dollar thirty, the other costs less than a

0:26.1

penny. You may have guessed it but I'm talking about bottled water versus tap water.

0:32.0

We've done a lot of stories on the economics of water and how tap water

0:36.4

is surprisingly cheap. At the same time, water utilities often don't have enough revenue to patch up their aging infrastructure.

0:46.1

So if customers are willing to spend so much on bottled water and water providers need more cash,

0:55.0

why don't they just charge more? This is the indicator from Planet Money, I'm Darren Woods.

0:59.0

And joining us today to answer that very question is Stephen Bassaha from the Gulf States

1:04.2

Newsroom.

1:05.2

Hey thanks for having me and yes we're a family of public radio stations in Alabama, Louisiana,

1:10.5

and Mississippi and today we talk about why it's so hard to raise rates

1:14.7

while still making sure everyone has access to what's considered an essential

1:18.9

human right, clean drinking water. We also hear about how a plan to solve that in Mississippi led to a threat to cut off hundreds

1:27.1

of thousands of people from food stamps. Wait, wait, don't tell me.

1:35.0

Fresh Air. Up first.

1:36.0

NPR News Now, Planet Money,

1:38.0

Ted Radio Hour, throughline,

1:40.0

the NPR Politics Podcast, Code Switch, Embedded Books We Love, Wild Card, are just some.

1:47.2

Of the podcast you can enjoy, sponsor free with NPR Plus.

1:50.4

Get all sorts of perks across more than 20 podcasts with the bundle option.

1:54.7

Learn more at plus.npr.org.

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