Water UK is the trade association representing 16 water and sewage companies in England and Wales. Reported by the Financial Times, the association said it was calling for compulsory water metering and legislative changes to charging in its submission to the government-commissioned sector review.

The review, led by Sir Jon Cunliffe, former Deputy Governor of the Bank of England, aims to examine how customers’ bills are set, water companies’ financial resilience and environmental regulations.

Water metering is currently only compulsory in areas that the Environmental Agency has labelled as “water-stressed” such as Cambridgeshire. According to the industry body, 40% of people in England don’t currently have a water meter. Households currently pay a fixed standing charge regardless if they have a meter, which means that bills don’t align directly with water consumption.

WaterUK wants the standing charge to be abolished and introduce “block tariffs”, where the unit price of water will be higher for households that consume more. Households with large gardens and swimming pools would pay relatively more for their water – with others paying less.

“We think it is much fairer that people pay for the water they use based on how much they use,” explained WaterUK, Chief Executive David Henderson. Henderson added that water companies are currently under a lot pressure and must invest in their systems. At the same time, they need to keep bills affordable for the people who pay them.

The review closes on the 23rd of April, 2025. The Independent Water Commission will deliver its final recommendations to the UK and Welsh governments in June.