shameekv1989
First I am considering a conclusion solely as "These emergencies could be avoided if Springhill would introduce permanent economic incentives for water conservation" and not that "SH discourages water conservation."
With this in mind, if we consider option C) i.e. "The threshold is kept at a high enough level to exceed the water requirements of most households in Springhill. "
This states that thresholds are at a level that people currently can fulfill their requirements and thus will be able to save/conserve water as well. If this is the case, then we don't need any further incentives for water conservation (and thus discouraging water conservation). As per the conclusion that I took into consideration, this would basically contradict that SH really needs to introduce incentives for water conservation in order to avoid emergencies. Since the threshold level is already at a high enough level that people can use.
I accept your choice of conclusion - that is completely valid.
However, I am still unsure about how "people currently can fulfill their requirements and thus will be able to save/conserve water as well".
The "threshold", as per the stimulus, is simply a level of consumption beyond which a variable charge is levied depending on usage ("...each household pays a modest monthly flat fee for any amount of water below a certain usage threshold, and a substantial per-liter rate only after the threshold is reached"). I am unable to understand how this is connected to how much water is "conserved", which is affected solely by the actual amount of water used.
For eg; if a typical households consumes 3000 litres of water a month, option (C) states that the tariff structure in Springhill is such that the households would have to pay a fixed amount (say $ X) for any usage below, say, 5000 litres a month,
irrespective of how much water they consume below 5000 litres a month.
A variable rate (say $ y
per litre) is levied
only for usage above this threshold of 5000 litres a month.
So a household, currently using 3000 litres of water a month, has no incentive to reduce it to, say, 2500 litres a month, since they would continue to pay the fixed amount $ X for this reduced usage as well.
Please tell me if I have missed something.