Water bills set to soar

MILLIONS of families face higher water bills following the worst drought since 1976, it emerged yesterday. To avert shortages, several water companies are believed to be poised to invoke emergency powers to install compulsory meters in every home.

Households would be charged for the exact amount they use - with large families hit hardest because the cost of the water they consume would be higher than the flat rate currently set by firms.

The drastic measure - which has never been taken before - would come in via so-called 'scarcity status' powers introduced in 1999. Four or five companies in the south and east of England are thought to be considering applying for the status.

Experts said this could see meters forced on about four million homes, with half of those facing higher bills. But about one and a half million households - especially people living on their own - would be better off. About 500,000 would see no significant change to their bills.

The prospect of compulsory metering was brought closer yesterday by Environment Minister Elliot Morley. He warned that families face tough water restrictions to cope with the crisis brought about by a dry winter and the recent hot weather.

But campaigners said bills have already risen sharply in recent years - as the companies waste an astonishing 802million gallons a day through leaky pipes.

Companies can make applications to the Government for compulsory metering if it is decided that supply in their area is under permanent threat. Mr Morley said: 'I would be surprised if we didn't see some.'

He said Ministers were considering a raft of measures to encourage voluntary metering - including giving homes a 'free' ration of water, with higher charges for excess use. But if the drought worsened then companies would have to take compulsory steps, he said. About a quarter of homes in England and Wales are already metered.