Water Meters

Water meters are devices that measure how much water is used at a property and allow customers to be charged for water based on their consumption.

Water is a devolved matter, and the following information relates to England.

Water bills

In England, water bills are set by water companies, who have regional monopolies on their supply areas. As there is no direct competition, the economic regulator, Ofwat, sets a price control on the amount that water companies can charge their customers through its price review process. These prices depend on the geographic context, state of infrastructure, balance of supply and demand, and historic investment in the water company, among other factors. More information on regulation of the water sector is set out in the Library research briefing, Economic regulation of the water industry.

How are household customers charged for their water?

All water bills in England are comprised of a standing and variable charge, with the standing charge relating to the infrastructure that the water company maintains. The variable charge relates to the amount of water used by the customer.

If household customers have a water meter, they will pay a metered charge. This variable charge is based on the volume of water used, as measured by the water meter. As of March 2023, around 60% of households in England had a water meter.

If household customers do not have a water meter, they will pay an unmetered charge.

The variable component of an unmetered charge is based on one of three things:

• a flat rate charge (a flat rate for everyone, wherever they live and whatever property they live in),

• an ‘assessed volume charge’ (reflective of the size and type of the property or the number of occupants, usually based on council tax banding or the current face value of the property. This is sometimes offered instead of a water meter, where an individual has asked for one but it was not possible to install a meter),

• as a percentage of the rateable value (RV) of the property (a value given to properties in 1990 by Inland Revenue, calculated based on the size, condition and location of the property).

Ultimately, water companies are responsible for billing.

Can a household customer choose to have a water meter?

Household customers who currently recevie unmetered bills have the legal right at any time to give their water company a notice requiring them to fix charges by reference to the volume of water supplied (on a metered basis). Customers can do this by contacting their water company directly.

Tenants also have a right to ask for a meter but it is recommended that they ask permission from their landlord first. If a tenancy agreement is for less than six months a tenant must ask permission from their landlord.

The installation of the water meter should be free of charge unless changes to the customer’s plumbing are required. The installation should happen within three months from the date of the request.

A water company is not obliged to give effect to the customer’s notice if it is not reasonably practicable to do so, or if it is unreasonably expensive. In these cases, a water company may put the customer on a tariff known as an assessed volume charge.

Can a household customer change their mind?

A customer generally has twelve months in which to change their mind and revert to how they paid their bill before they asked for a meter (provided it is the first time the customer has asked to be charged by volume at that premises).

Customers should contact their water company to inform them if they change their mind in this period. The meter will be left place in place.

The right to switch back does not apply:

• if a customer has moved into a property which already has a meter, or
• if the water meter has been installed by the water company in circumstances set out under the following question (including if the customer lives in an area of serious water stress).

Can a water company insist on the installation of a water meter?

A water company in England can install a water meter and charge on that basis in the following circumstances:

• if the area has been classified by the Secretary of State as an area of serious water stress,
• if a customer is a new occupier of a property and has not yet been sent an unmetered bill,
• if the water is used for watering a garden, other than by hand,
• if the water is used to replenish a pond or swimming pool of more than 10,000 litres,
• if the water is used in a bath with a capacity of more than 230 litres,
• if the water is used in certain types of shower unit (for example, a power shower)
• if the water is used in a water softening unit that incorporates reverse osmosis, or
• if the premises are not used solely as a person’s home and the other use is the principal use of the premises.

These circumstances are set out in section 144B of the Water Industry Act 1991 (as amended) and the Water Industry (Prescribed Conditions) Regulations 1999.

Can a household customer refuse to have a meter installed?

If one of the circumstances outlined above applies to a customer, the water company can install a meter and charge on that basis. A customer cannot refuse a meter in these circumstances.

Can a household customer refuse to have a smart meter?

A water smart meter is a device that records water meter readings automatically, usually hourly, and then relays them to the supplier. Traditional meter readings are taken manually, at most a few times a year.

It is at the discretion of the water company to decide which type of meter it proposes to use. Therefore, if a smart meter is installed in one of the above circumstances, the customer cannot refuse to have a smart meter.

Which areas are classified as in serious water stress?

The following water company areas were classified as areas of serious water stress by the Environment Agency in 2021:

• Affinity Water
• Anglian Water
• Essex and Suffolk Water
• South East Water
• Southern Water
• Sutton and East Surrey Water
• Thames Water
• Cambridge Water
• Portsmouth Water
• South Staffordshire Water
• Severn Trent Water (excluding Chester)
• Veolia Water
• Wessex Water
• South West Water (for Bournemouth and the Isles of Scilly)

The Secretary of State may revoke or modify any determination at any time.

Is there compulsory metering in some parts of the country?

Water companies have powers to require a meter to be installed but no water company is required to introduce compulsory metering. The legislation simply gives water companies the power to choose to use metering as a way of managing water resources in their area.

Some water companies in areas of serious water stress have started to roll out compulsory metering.

What are the pros and cons of having a water meter?

Some households may save money on a water meter, but others may see higher bills. According to Ofwat, the extent of any savings arising from having a meter installed are likely to depend on:

• how much a customer currently pays,
• the number of people living in the property,
• how much water each person in the property uses, and
• how much a customer can reduce their overall water use.

The Consumer Council for Water maintains a water meter calculator which customers can use to see if they might be able to save money. Customers can also contact their water company to discuss whether a water meter would be beneficial.

A water meter is more likely to save money in houses with high rateable values, or if only a relatively small amount of water is used. Single occupiers are most likely to benefit.

Can a water meter be removed by a new occupier?

A customer moving into a property that already has a water meter cannot have the meter removed. The water company is entitled to charge the new occupier on a metered basis (so long as no unmetered charges have already been billed to that customer).

Water companies are required to set out the approach they will take to charging new occupiers and this information should be readily available.

Where else can constituents go for advice?

Any household water customer's first port of call for further information should be their water company. If they have a complaint, they should try to resolve it through the company’s complaints procedure (which should be detailed on its website).

The independent Consumer Council for Water can be contacted for independent information and advice on how to resolve any water or sewerage related problems. It is an independent organisation that represents customers’ interests.

Under the government's water reforms, it plans to abolish Ofwat and create a new regulator. The forthcoming Clean Water Bill includes plans to establish a new Water Ombudsman to represent consumers.

Further reading

• Commons Library, Economic regulation of the water industry
• Commons Library, Water meters: the rights of customers and water companies
• Commons Library, Water bills: affordability and support for household customers