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Households with large gardens or swimming pools would pay more for their water under recommendations from the utility industry to introduce fairer billing.
Water UK, which represents water and sewage companies in England and Wales, has called for compulsory metering and higher rates for excessive users as part of a government-commissioned review of the sector.
At present, 60 per cent of UK households have a water meter, but it is only compulsory in areas such as Cambridgeshire, which have been deemed “water-stressed” by the Environment Agency.
However, the industry body told the Financial Times metres may become essential as part of measures which would raise the unit price of water as consumption increases.
According to their proposals, frugal users would be rewarded with cheaper pricing per unit, while excessive users, including those with swimming pools or large gardens, would be forced to pay more.
Currently, all UK customers pay a fixed rate on water. Metered households are charged on how much they use, whereas non-metered users are charged according to the value of their property.
However, Water UK says the current system is outdated and is resulting in bills not being set entirely according to water use.
CEO David Henderson told the Financial Times that water companies acknowledged the “entire regulatory model isn’t delivering for customers or the industry” and that many features were “blunt and crude.”
Water bills have been front of mind for households recently, with regulator Ofwat in December warning households that the average water bill is set to increase by 36 per cent over the next five years.
According to the regulator, the rise is expected to cost UK households an extra £31 per year. Customers of Thames Water, the UK’s biggest supplier, will see prices rise by 35 per cent, despite the giant requesting an increase of 53 per cent.
The body’s 200-page submission is part of a review commissioned last year by the government following public anger over sewage pollution.
The document also pushes for water companies to no longer be allowed to monitor their own pollution levels.
This follows long time claims from campaigners who say that the current self-reporting model has often hidden the true scale of water pollution in the UK.
In response, they have proposed a third party monitoring scheme which would seek to rebuild consumer trust and add more pressure to regulators.
