Water Bills

How much does it cost to ‘spend a penny'? Encouragingly, for anyone with a water meter it will be roughly 1p, substantially cheaper for many than the old style bill system. In fact, for some in England and Wales, switching to a meter may save over £240 a year.

• There are two options
• Meter vs. Bills
• When you should switch?
• Are you a light sewerage user?
• The size of saving
• Other Articles/Discuss

Don't throw money down the drain

Unfortunately, in Scotland it’s not free to have a water meter installed (it’s actually quite expensive) so, unless you live alone in a manor-type-property, you should stick to billed payment.

There are two options

You can't switch water provider as while the market is privatised, it's not open to competition. This means the most important decision is how you're billed.

Water Bills – the traditional way

Only 30% of homes have a water meter, most are still being charged on the ‘water bill' system. Here the price is fixed depending on a home's ‘rateable value', and the amount of water used is irrelevant.

This roughly means that the more your home can be rented out for, the more you'll pay. It's staggering that even though rates were abolished in 1990, water bills still depend on them. There are no plans to change this archaic system and, unfortunately, no prospect of getting your home's value re-assessed (unless the water company decides to re-assess your whole area).

The average un-metered bill in England and Wales is £362, while the average metered bill is £309 – though it varies heavily with region. However, while in England and Wales (though not Scotland or Northern Ireland) water companies are privatised, there's still no competition. You can't switch to a different water company – like you can in the gas and electricity markets - to get a cheaper supplier.

Water Meters – a measurable way to save

Yet this doesn't mean savings aren't possible. You can opt to fit a water meter, where your bill relies on your consumption. Though it's not just your water use it measures; many companies have accused me of talking excrement in the past. In this case it's true – what comes in must go out, and water meters usually calculate the sewerage bill too.

Battle of the Bilge: Meter vs Bills

It's important first to see whether a meter is financially worthwhile. As a rough rule of thumb, if there are more bedrooms in your house than people, you should check out getting a meter.

Get the calculation done for you

Whether a water meter is worthwhile depends on your water company and usage. There are two ways this calculation can be done for you:

• The Quick Way. Use a comparison service

  For a quick calculation, both comparison site Uswitch* and the Consumer Council For Water offer calculators. The Uswitch one is much easier to use though, it questions how often you use the washing machine and dishwasher and the number of showers and baths taken weekly by your household. This can often be more than you think; after all four people showering daily is 28 showers a week. Once those details have been input, it quickly calculates whether a meter will cut your bills in most areas of England and Wales.

  
  

  The data is only updated annually on 1 April when water prices change; yet its still a good guide as to which will be right for you.

• The Accurate Way. Ask the Water Company

  For a more accurate, but time consuming comparison, call your water company and ask it to provide you with its ‘water meter calculator' which makes it easy for you to work out whether you'll save.

Wee extra savings for those on a meter

• Be Shower Smart

  Eaga, an energy efficiency provider and store, has 100,000 free Showersmart devices, which it says make your shower more energy efficient, to give away to households in England, Scotland and Wales. More details in the Showersmart forum discussion.

• Use a Save-A-Flush

  Many water companies offer free ‘Save-A-Flush' bags which go into the toilet so you don't use as much water. It's good for the environment and should save you roughly a tenner a year (see the 'Save-A-Flush' Chat discussion). If you can't be bothered calling your water authority to get one, just fill up a 1 litre (or 2 litre for bigger savings) fizzy drink bottle with water and it should do the same job. There's a useful list of how to get water devices from some water boards from Reduce, Reuse, Recycle.

• Fix leaky taps

  Check your meter's not turning when you are not using any water and if it is get leaks sorted pronto.

• Extra help for those on low incomes & medical needs

  If you have a water meter and someone in your household receives benefits it may be possible to get the amount you pay capped. To be elegible you need to be receiving benefits and also either have three or more children under the age of 19 or you or someone in your household must have a medical condition that means they use a lot of extra water.

  If you're accepted your costs will be limited to the average household bill for your water company however much water you use. Average savings can be around £250/year. To sign up contact your water board for an application. (See South Staffs WaterSure for an example, but make sure you apply to your local board).

Of course, for those on a water meter, saving water means saving money, but anyone reducing the amount of water they use is also good for the environment. Nowadays we use an average of 150 litres of water a day, whereas our grandparents only used around 20! For more hints and tips on conserving water read the Great 'Use Less Water' Hunt.

When should you switch?

Water companies must fit meters free of charge upon request - except in Scotland - unless it's justifiably impractical (for instance, those living in blocks of flats with shared pipes). On the rare occasions this excuse is invoked, if your water usage is limited, request an “assessed charge bill” where rather than rateable value, your bill is worked out using details such as how many people live in your flat.

Will you always save?

Whether you decide to switch is a function of the savings. If you will save substantially then it's a good idea, though there are a couple more facts to be aware of.

• If savings are minimal stick to surety. Water bills give you surety of knowing exactly what you will pay regardless of usage.

• You've only 12 months to switch back. Switch to a water meter and you may only switch back within 12 months or a month after your second measured bill, whichever is later (move into a home which already has a meter and you can't switch back).

• Does having a meter hit your house price? Some say meters lower a house's sale price. There is a slim chance it'll put high use buyers off, but it's rare. So if you're not planning to move imminently, ignore it and bag the savings.

• High water usage will force you onto a meter: Use large amounts of water for non-necessities such as swimming pools, ultra power showers or sprinklers and a meter will be fitted automatically.

Are you a light 'sewerage user'?

While most of the water meter billing system is straightforward, there’s an assumption that ‘what goes in, must come out’ and therefore the amount of water used creates roughly an equivalent amount for the sewerage system to deal with.

In fact the general assumption is 90-95% goes back, but this can be wrong in a couple of specific circumstances; and if that’s the case you can get serious money back.

• Do you have a ‘soakaway?’

  A ‘soakaway' is a large underground pit of gravel which collects water from your roof or drive. You're more likely to have one if you live in a small town or village than an urban area. If unsure, check your property deeds or visit your local authority to look at the planning application.

  The water companies should give rebates to any customer whose surface rainwater goes into a soakaway rather than the mains sewers, this is usually between £20 and £40 and can be claimed whether you're on a meter or not. To apply for a rebate, simply fill out your water company's form; call or go online to request it.

• Do you have a pond, large garden or swimming pool?

  If you’re on a meter and use a substantial amount of water from an outside tap, you can contact your water company to ask for a reduction in your bill. If you can show that you haven’t poured the water down the drain you shouldn’t have to pay the sewerage charge.

  The usual circumstance when this would apply is a large one-off amount of water use, such as filling a pond or swimming pool. If it’s a more regular, ongoing use, then it's possible to prove it by fitting a water meter to your outside tap, though that's expensive.

• Do you have a septic tank or cesspit?

  If you're in an area with no connection to main sewerage so have a cesspit or septic tank you don't have to pay sewarage charges. This only applies to a handful of people, but if you do have one you're entitled to between £110-£220 off depending on which water board serves you.

Picking the right option for water bills can make a serious difference. To indicate the scale of saving, look at a four bedroom home with a current bill of £320 a year.

With four residents in the South West Water area it's much better to stick to the standard bill, yet with just two people in the house in the Northumbrian area a meter would save £58 a year. The same household in the Thames Water area would save a huge £104 - substantially more than a drop in the ocean.