Georgists have figured this out long ago. To make a regressive tax progressive all you need to do is turn the revenue gained from it into a flat per capita tax rebate. Also residential water use is tiny. Maybe your water bill goes up $400 a year but that doesnt matter when you get a $1000 rebate because most of the tax is paid by agriculture.
Ultimately 'profit' is the result of transitive dependencies on things people want fulfill what they are willing to pay for. But I agree that we should subsidize residential water and electricity usage. But the base price before subsidy should reflect the externalities.
We need to find a way to limit its use for profit, while still allowing actual humans who need it to get as much of it as they need.