Internet service providers have noticed that some businesses (Netflix, Google, etc) move a LOT more data than others. The ISPs want to increase prices for customers that move lots of data, or certain kinds of data, because the ISPs know that data is more valuable.
“Net neutrality” means ISPs won’t be allowed to charge different prices based on quantity/content, they’ll have to treat everyone the same and charge according to just one factor: bandwidth (how much data they send/receive per second or month).
It’s like the water company charging a restaurant more for their water because they need it more.
“Net neutrality” can also be considered an alternate term for “common carrier”: the phone company can’t listen to your phone call and charge more based on the content.
You have it absolutely wrong.
To correct your analogy ....it would be like the water company charging everyone the SAME fee. ...but the restaurant and the auto car wash can use as much water as they want for the same total price per month as what you get charged. So you, the homeowner, might end up paying $200/month where you used to get charged $40....but the commercial establishments also get to pay only $200/month - even though they might be using 100 times the water you used.
ISPs would be forced to upgrade the ‘highway’ to allow all users to us it...and the home user who rarely streams videos ends up subsidizing the internet superhighway for those that stream Netflix videos all the time. With net neutrality - the user who uses minimal bandwith would be charged the same as the user who routinely wants 30 Megabits/second for hour after hour.
ISPs have a choice: they can offer unlimited bandwidth including Netflix, or they can charge by the gigabyte. The government, long looking for a way to 'regulate' the internet, glommed onto this problem so they can offer a 'solution.'
Here it is a couple years later and you are still beating the same dead horse. The carriers cannot look at your data unless it is so extreme (e.g. HD video) that you can't encrypt it. All such attempts at censorship/overcharging can be rerouted and encrypted. The exception is content that is too big to hide like streaming video which is 99% garbage that you shouldn't be watching anyway. But if you really wanted it you could get it non-streaming and there is nothing the internet providers can do to stop that or charge more for it.