Water meters

Our preferred method of charging for water is to bill customers via a meter, as this is the fairest way to pay and reflects actual consumption. It therefore encourages people to use water wisely. It also assists us in detecting leaks.

We currently fit meters as standard in all new homes, businesses, and properties with swimming pools or sprinklers. We also install meters free of charge for customers who opt to have one fitted, unless it is impractical or cost-prohibitive.

About 28 per cent of our domestic customers currently have water meters. Over the next five years, we plan to install more than 370,000 new meters, taking the overall proportion to 37 per cent by 2015.

Ultimately, we plan to fit around 2.2 million new meters, so that around 80 per cent of household customers have meters by 2025.

The following table shows how many meters we installed from 2005 to 2010, either for households that opted for a meter or when properties changed ownership. In total, we fitted 161,336 meters, against a target of 112,052.

Mick McCormick fits a water meter in Reading.

Demand for meters has risen significantly over the last five years. In that period, we fitted 115,834 meters for customers who opted to have one, compared with our five-year target of 62,770. Factors prompting this increase are likely to include a heightened customer awareness of the need to conserve supplies in south-east England and the economic downturn increasing awareness of household budgets.

In addition to this, water companies have powers to install meters when a property changes occupancy. Over the last five years, we have fitted, or brought back into use, 45,502 meters in such circumstances.

Our experience of this latter type of installation has led us to conclude that it is not the most cost-effective method. This is largely due to the difficulties and additional costs associated with gaining entry to properties, particularly in London. We also began to experience a natural slowdown in the number of homes changing hands from 2008/09, mainly due to the economic downturn.

During 2009/10, we have installed no meters upon change of occupancy, and our current policy on this is under review.

We intend to install 'automatic meter reading' technology as standard when we fit new meters or replace old ones, allowing meters to be read remotely – for example, while walking or driving past.

Among the likely benefits are increased productivity, more accurate data and the ability to detect leaks on customers' pipework.

We also intend to implement a concept called 'integrated demand management', in which we install meters when replacing local water mains, then provide advice to customers on how to use their water wisely. The advantages of this approach include greater efficiency and less disruption.