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A Water Meter Can Save £125

Posted on: Tuesday, 6 June 2006, 12:00 CDT

By Sally Hamilton, Financial Mail on Sunday, London

Jun. 4--We use an average of nearly 55,000 litres of tap water a year for drinking and washing -- enough to fill a private swimming pool. If we had to use bottled mineral water at roughly 36p a litre instead, that would cost us each £19,800 a year.

That puts into perspective how little tap water costs. But bills have been rising steadily and in April, the average annual bill for both water and sewerage increased by an inflation-beating 5.5 per cent to £294.

With household budgets already under pressure from higher gas and electricity bills, rising water charges are an unwelcome extra burden. We are used to switching to a cheaper gas or electricity supplier, so why not the same with water?

Unfortunately, you cannot shop around, even though the industry has also been privatised. Each water company in England and Wales is in charge of the local supply and distribution and are near-monopolies, albeit under the tight control of Ofwat. In Scotland, the single provider, Scottish Water, is publicly owned and regulated by the Water Industry Commissioner.

To enjoy cheaper water, consumers would have to move to an area where the bills were lower. An easier move is to have a water meter installed free by the water company and then take control of your consumption.

Tim Wolfenden, product strategy manager of utility bills comparison service uSwitch.com, says: "Householders could easily save an average £125 a year by switching to a meter.

"If you have more bedrooms than people in the house, you are likely to save money by installing a meter because unmetered bills are calculated on the rateable value of a property, which takes into account its size."

Most companies have an online calculator to help customers decide whether a meter makes sense. Houses with a meter use on average ten per cent less water, according to Ofwat.

Joyce and Kenneth Dye from Beverley, East Yorkshire, decided that their £480-a-year unmetered bill from Yorkshire Water was too high and decided to install a meter.

Joyce, 69, a former school welfare officer, says: "We looked at uSwitch. com and it estimated we would save £200. We expect to save £21 a month, nearly half what we were paying."

Yorkshire does not face the shortages of the South, where 18 months of low rainfall means hosepipe bans are in force in many areas and drought orders have been issued allowing water companies to impose restrictions on business usage.

But the Dyes want to do their bit for the environment. They always take showers rather than baths, use a mug of water to clean their teeth, fill a bowl for washing up, use a special bag in the toilet cistern to reduce flushing and make sure they have a full load of dirty laundry before using their washing machine.

Joyce says: "We have also just bought two large water butts to collect rain and gutter water to water the garden."

In the unlikely event that the couple's switch to a meter leaves them worse off, there is an option, as with all water companies, to switch back again to an unmetered tariff.

But this must be done within 12 months. In these situations, if the property is sold, most water companies reserve the right to make the new owner sign up to metered bills.

Some properties cannot have meters fitted, so occupants will be charged what the water company thinks is the right amount. If the bills look too steep, consumers should challenge the water company.

One potential drawback of metered bills is that if a leak is discovered inside a property, it is usually the owner's responsibility to pay for repair. If the damage is outside and up to the gate, it is also the legal responsibility of the owner.

Andrew Marsh of the Consumer Council for Water says "There is a gentleman's agreement that the company will pay for repairs and the cost of the water the first time a leak happens."

Many customers are offered insurance with Homeserve Emergency Service that includes cover for leaks and repairs. Marsh says: "Not everyone will need the cover, but Homeserve is good at guaranteeing to do repairs quickly."

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Copyright (c) 2006, Financial Mail on Sunday, London

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Source: Daily Mail

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