Charging for Utilities?

Would it be fair to say that for those who live in university accommodation, energy efficiency doesn't really cross the mind because electricity and water bills are included in the overall price of accommodation? There's no incentive to save, or maybe even a sense that 'since I've already paid for it, I might as well use as much of it as I can'. Might charging for energy and water therefore be a way to really get a grip on cutting down on usage?

Electricity and water consumption, and accommodation pricing, I would imagine, almost works in a vicious cycle - students pay accommodation fees inclusive of utility bills, but have no real incentive to cut back, so end up using more than they need to, much of it wastefully. Then to reflect the additional costs that these incur (in addition to the trend of rising gas prices), accommodation charges for the next academic year end up increasing over and above inflation. Which further encourages profligate energy/water consumption, and so the cycle continues. Is thisa fair description - and if so, how do we break that cycle? How can we apropriately incentivize environmentally-responsible behaviour?

Might competition work - say meters can be installed in PJM houses, Penbryn corridors or flats in other accommodation - then whichever house/flat uses the least electricity or water per term gets a rebate from their accommodation fee? Or saying that each house/flat is entitled to 'x' amount of electricity per term (x being what is needed to live reasonably) and if the house/flat goes over 'x' then they are charged for it? How could we shape a system so that those who make a conscious effort to use less energy are rewarded for their efforts and don't have to pay the same amount as those whose lights are left on all the time, windows open in the middle of winter, charging devices always plugged into the wall...?