Water meters could be compulsory

MILLIONS of householders may be forced to install water meters amid claims that some regions risk running dry.

The predicted water shortages are being blamed on a combination of climate change and plans for vast new housing estates in the south and east of England.

Water companies, which are looking at ways to ration supplies in future decades, see the introduction of meters as a key weapon in their armoury.

Any such measure is likely to be extremely unpopular, however. Opponents will brand it an attempt to restrict water use through price.

Critics also say the industry should do more to prevent the staggering loss of water through its own leaky pipes before it starts imposing meters.

The water industry regulator Ofwat favours the introduction of meters, but the policy is opposed by the National Consumer Council and pressure groups.

There are concerns that families on low incomes, or those with particular disabilities who need to use a lot of water, will be penalised.

The multi-billion-pound cost of forcing meters across the south and east of England would also mean higher bills for all customers.

The small Folkestone & Dover water company, which is owned by French utility giant Veolia Environment, has become the first to raise the idea of forcing meters on families. The firm, which serves 200,000 homes, wants to meter 90% of its customers by 2015.

The company is to apply to the Government, through the Environment Department, for 'water scarcity status', which will provide the necessary legal powers to impose metering.

The reactions of both customers and Government are being watched by other water companies keen to follow.

In his Budget speech tomorrow, Chancellor Gordon Brown will give his backing to the building of an extra 1m homes in the South East over the next ten years.

The water industry will argue that the only way this can happen will be if it is given the power to use meters to slow demand. The average rainfall in the South East is half that of the rest of the country. But water use there is rising rapidly as a result of increasing prosperity and development.

Demand in Folkestone and Dover has been raised by the Channel Tunnel and the Port of Dover's diversification into servicing cruise ships.

The company takes its water from natural underground supplies in East Kent. But it says those sources are declining because of climate change and environmental pressures.

Alternative sources - for example water from rivers - are controversial because of the impact on the landscape and wildlife. Building new reservoirs is both difficult and expensive.

Folkestone and Dover managing director Peter Darby said: 'With the prospect of a new regional reservoir years away, the company has decided to apply for water scarcity status. If the Secretary of State approves, the company will be empowered to install meters on every water supply, with a target of 90% of all customers being metered by 2015.'

Barrie Clarke of Water UK, which represents the industry, said: 'They are not alone in facing tight demand. It is tight everywhere in the South East.'

He added: 'There is a risk of alienating customers and this is something the industry is very concerned about. This company deserves credit for being willing to stand up and be counted. I know others are watching this very carefully.'

Peter Bowler, of the campaigning consumer group WaterWatch, said: 'Before the last election, Labour was describing water meters as a tax on family life. Now, step by step, they are increasing the powers of the privatised water companies to force them on to families.'