Utility pricing – to block or not to block

A person washing fresh green leafy vegetables under a running faucet in a modern kitchen. The water is splashing onto the stainless steel sink, and sunlight is streaming through a window in the background.

Rather than provide a volume discount, some utilities charge a higher rate for greater use. This approach, known as an inclining or rising block tariff, is often advocated as being a fair way to encourage conservation.
But is this really the case? This article investigates.