Data-based, differentiated pricing models

VA Syd, one of Sweden's largest water and wastewater utilities, wanted to explore how lessons from the energy sector could inform more sustainable water pricing. Because infrastructure costs are largely driven by peak demand, the study examined how data-based, differentiated pricing could better reflect actual system costs while encouraging customers to shift consumption away from high-demand periods.

The project resulted in a roadmap of pricing models tailored to VA Syd, with a recommendation to begin with industrial customers due to their greater cost sensitivity and ability to automate consumption. Time-based fees were identified as a practical first step, with a clear path toward more advanced pricing models over time.

The study also highlighted the broader value of strengthening VA Syd's data capabilities. A modular data platform could support not only differentiated pricing, but also forecasting, planning, predictive analytics, and customer communication, allowing VA Syd to capture near-term benefits while building a foundation for long-term innovation.