What a water meter could do to your bills – and why you may be forced to have one

Water bills cost us hundreds of pounds every year, yet what you are charged is often based solely on estimates conjured up using the size and location of your property.

It means that if you live alone in a big house, you could well be paying for a lot more water than you use.

However, this is all changing as utility firms are now rolling out smart meters across the country that will provide deliver regular updates on how much water you are really using.

Some providers are even making meters mandatory and – as homeowners have been finding out – can fit one without you even knowing about it. 

Currently, about 61pc of customers in England and Wales have a water meter, according to the regulator Ofwat, but this figure is set to soar as firms install them across the south of England, from Swindon to Suffolk. 

For those with the option to install a water meter, whether or not it would be beneficial for you (and whether or not you have a say in the matter) is dependent on a number of factors: mainly where you live, but also the size of your household, and how many baths you take a week. 

Here, Telegraph Money breaks down how a water meter works – and whether installing one could see your bills rise.

What is a water meter and how do they work?

The Energy Savings Trust charity estimates the average annual household water bill to be £427, and there are no competitive rates for water suppliers – your supplier depends on where you live, and that’s that.

Amid all the discourse about smart energy meters, it may be tempting to think of a water meter as a modern invention in line with the former, but in reality, that’s not the case. Traditional water meters operate like their gas and electric equivalents.

Unmetered houses are billed based on a property’s rateable value. This is set by the Government and is based on your home’s location and size.

If you do have a meter, how your provider bills you is the same as how your energy provider does, either by setting up a direct debit or paying on receipt of bill every month. 

Either way, you pay for the water you use, so if your usage spikes and you use more water than your monthly payments cover, it will be reflected when your provider reassesses your direct debit every six months.

What about smart water meters?

Like smart energy meters, they provide up-to-the-minute data on usage. Providers claim smart water meters make it even easier to detect leaks, but there is no difference between metered and smart-metered properties in how much households are charged. 

Some smart meters can be read remotely from, say, a vehicle on the road, while more advanced models are linked up to a communications network, typically providing daily updates. 

The type of meter a provider fits to a property is up to them. For providers such as Thames Water, who are already rolling out meters compulsorily, smart meters have simply become the default option. 

“While we don’t need permission to fit smart meters, they are the fairest option for customers, as people only pay for the water they use,” a Thames Water spokesman said.

In terms of how a customer can view the data collected by their smart meter, suppliers like Thames Water share regular updates about water use via an online account. Others, like Yorkshire Water, don’t have an online portal yet for customers. 

As with smart energy meters, defenders of the modern technology argue their constant updates on water usage influence behaviour and reduce usage.

Will a water meter save you money?

If you live in an unmetered property, then your provider has no idea how much water you are using. You could be taking seven baths a day and flushing the toilet every 10 minutes and your bill will not change. 

Equally, you could be more conservative with your water use than would be expected of a house of your size, and technically be paying more than you should be. This is, providers argue, unfair.

Water meters, therefore, are the leveller. They are fair, because they let your provider charge you for the water you actually use, rather than what it thinks you’re using.

This means it’s not so cut and dry as to whether having one will save you money or cost you more. If you have an idea of how much water you use every week, the CCW (the voice for water consumers) has a handy calculator you can use to determine whether it’s a good idea or not.

According to Citizens Advice, you might well pay less if there are fewer people in your property than there are bedrooms.

Ben Dhesi, of energy-saving app Hugo, calculated a few examples: “If you live in a large household with high water consumption, a water meter may not be the most cost-effective option for you, and you could end up paying more in water charges, as well as additional charges for wastewater disposal.

“Let’s take the average four-person household for example. If you factor in two showers per person per week, three loads of washing, as well as the usual water used for brushing teeth, using the toilet etc. this works out to 125 cubic meters of water per year.

“If you live in Bath and use Wessex Water your annual bill will clock in at £523.44, but if you use a water meter this would cost you £585.18, meaning you’ll be paying an extra £60 a year. 

“For the same household in Durham, a water meter means they would pay £411.32, a small rise on their £411.19 annual bill, but this could work out cheaper in the long run if they worked on cutting back their water use.”

As you can see, there are a lot of variables in play here, so truthfully the best course of action is to use a calculator. 

Mr Dhesi also points out that that if your estimated metered and unmetered bills are similar, then a meter would work out cheaper if you cut back on your usage, whereas there is nothing you can do about the rate you pay without a meter. 

Dropping your water usage will also reduce your energy bills. Hot water contributes £228 to the average household energy bill, according to the Energy Savings Trust.

There’s also the environmental benefit: customers that move to a standard meter tend to use 12pc less water on average, while those who move to a smart meter use 17pc less.

Smart water meters also avoid the need for manual readings, and can alert both the water company and customer of any leaks. 

Compulsory water meters

Five water companies in southern England – Thames Water, Southern Water, South East Water, Affinity Water and SES Water – have either completed or are in the process of undertaking compulsory metering programmes. 

For example, Thames Water is currently rolling out smart meters to properties in London, Guildford and Swindon. 

Essex & Suffolk Water is also planning to introduce compulsory metering from 2025, and says all homes will be fitted with a smart water meter by 2035. 

Your supplier will usually write to you when they’re going to start fitting meters in your area.

Water meters are free to the consumer, and in most cases fitted externally in the pavement with no need to access the property. 

If they do need to fit the meter inside the property, they’ll ask you to book an appointment to have the meter installed, which should take around an hour.

If you’re a tenant, you may wish to let your landlord know ahead of a water meter being added – but ultimately the company doesn’t need the landlord’s or homeowner’s permission to fit the device.

If you want a water meter, but your supplier is not participating in a compulsory rollout, you can ask for one.  

I don’t want a water meter. What are my rights?

The only instance where you can decline a water meter is if your supplier only recommends you have a water meter, but does not have legal powers to enforce it.

If your water supplier has been granted legal powers to fit compulsory water meters, you don’t have any right to refuse one.

As Andy White, of the Consumer Council for Water, puts it: “It’s not possible for a customer to refuse where a water company has approval for compulsory metering from Defra.”

Having said that, if a water supplier requires access to your property to install a meter, and you refuse access, it may put you on its “no access” charge instead. This is a fixed annual fee that could be a lot higher than your current water bill. 

For example, Thames Water’s no access tariff is £451.58 for water, plus £312.46 for wastewater (total: £764.04). 

Southern Water’s no access charge is even more expensive, at £877.62 for the two components. Considering Southern Water estimates the average annual bill for a two-person household is £409, you could end up doubling your bill by refusing access.

If a water meter is fitted under a compulsory programme, there is no legal right to have the meter removed and revert to non-metered billing, but some companies do offer households the option of moving back onto unmetered charges if their bills become more expensive.

The table below shows how different water companies are approaching the water meter rollout – and whether or not you can refuse one.

This article was first published on March 30 2023, and is kept updated with the latest information.