Although the number of meters installed has increased in recent times, the majority of residential properties still pay a flat fee for the water they consume; the fee is based on the ratable value of the property. Parts of England have been subjected to droughts and water restrictions in the last few years, and the feeling is that water meters will help to encourage more responsible use of the resource. Metered consumption will also enable water utilities to identify leaks more easily.
A price review will take place in 2009, which will establish tariffs for the next five years, as well as determining the amount of investment in infrastructure that should take place. The MPs are expected to recommend that this review – which was introduced at the time the water industry was privatized – should instead take the form of a 25-year strategic plan. They have also called for a larger role to be played by the Consumer Council for Water, the industry watchdog.
