A means of charging for water must be sought that will be fair and rational, will not impair unfairly the profitability of the water companies, nor disadvantage the domestic and business consumer. Any new approach to charging must be compatible with existing supply arrangements and be flexible enough to develop with changing climate and technologies, whilst also yielding improved efficiency. In this context it is also strongly suggested that when considering water efficiencies, that simultaneous consideration be given to the environment as a whole, and ways to encourage progressively more efficient use of water and disposal of waste.

The Water Use Cycle

It is clear that increased extraction of water resources is not a sustainable option in years to come, and thus reductions in leakage and demand are crucial. Purity of supply is also a critical factor, and areas in this regard to consider are;

• Planting more trees, to stimulate rainfall and purify water in rivers
• Use of more environmentally friendly pesticides and fertilizers in agriculture
• Use of sub-surface drip irrigation in arable farming and even in large gardens
• Use of more biotechnology in water supply purification
• More rapid detection and repair of leaks in the mains distribution system
• More collection and direct use of rain water by consumers, easing storm drain surges
• More re-use of grey water in homes and businesses, e.g. cooling and washing water
• Installation of more economical plumbing systems e.g. waterless lavatories, better taps
• More rapid detection and repair of leaks in consumer premises
• Purification of industrial effluents in house, together with a more rigorous pursuit of polluters
• More purification of farm slurries and more local community sewage works

Possible Basis For Water And Sewerage Charges

There are only two basic concepts for charging of either domestic or business users. Charges could be based on metered use, or some other basis that will be arbitrary to a greater or lesser extent. This more arbitrary approach might include assessment of rateable value, council tax band, household income, floor area, number of taps, general taxation - to name but a few of the potential variables. Water experts have made representations on many of the following points:

• Charging on the basis of meter readings tends sustainably to reduce water use
• For the same installation cost, better plumbing might achieve comparable economies
• Consumers should have the option to be metered or not
• Banded charges could incorporate premium payments for high users e.g. swimming pools and garden hoses or discounts for more economical plumbing etc.
• A fixed standing charge could be supplemented with a payment based on use
• Cases of hardship can be supported through the benefits system
• Businesses using water as a process substance should pay according to use. These businesses might pay at a cheaper rate if they have special recycling and purification systems
• Suppliers should re-engineer their business towards greater profit from less supply of water, irrespective of the type of charging
• Water suppliers might also become suppliers of water saving technology as well as selling-on the saved water to premium users e.g. businesses, swimming pool owners etc.
• Metered charges could be progressively higher with greater non-essential use to reflect supplier’s marginal costs

Value of Metering - Possibly Independent Of Charging

The Environment Agency paper “Saving Water” suggests that universal domestic meter based charging will reduce demand by up to 16%, and thus, related to cost of installation, it ranks behind some improved plumbing measures and repairing supply leaks, running at 34% (some 220 litres / per day, per property). However, metering need not be related to charging alone, as meters could assist the rapid location of leaks in the mains by comparing home meters to data from bulk meters in the supply system. Indeed, this might be the major benefit of metering.

More accurate metering could also indicate minor domestic leaks such as a dripping tap or cracked pipe. When new, domestic water meters meet Class D with a starting flow of better than 3.75 litres/hr, the best down to 1 litres/hr, but all these meters degrade with wear. There might be up to 120 litres/ per day unmeasured by many meters. Better, sustained, low flow performance would identify previously undetected domestic leaks. Consequent repairs could lead to domestic leak reduction to a level comparable with new government targets for leak reduction in the supply system.

Universal metering would also yield data on changing patterns of consumption that will be invaluable in balancing future supply and demand. The technology exists, but has yet to be adopted by the industry, as it is slightly more expensive, though arguably self-financing compared to existing meters. The additional cost of a more accurate meter than current class D types might be 20 - 30. As it could alert the household or water supplier to very low flow losses, however, and stimulate repairs, it could save up to 30 m3 per year in some properties, which is billed by at least one major supplier at approximately 30 (including sewerage).

Metering is currently limited to Class D by a triple conundrum. Meter makers do not develop better meter technology, as water companies will not pay more for accuracy. Water suppliers do not seem to feel a need to be more accurate than regulations demand and regulators do not demand higher accuracy than is available from meter makers.

Significantly, metering need not be the basis for charges in itself. However, if metering were to be used explicitly for charging, it would be much better for the environment that the most accurate form of metering be utitlised, thus achieving the best possible reductions in wastage.

Recommendations

• Sustainability of supply can and should be enhanced by all available technologies
• Demand reduction is and should remain a priority, also by all available technologies
• Charges, irrespective of metering, should be used to promote water conservation
• Universal domestic metering, irrespective of charging, should be used for planning the future water economy and, very significantly, for locating supply leaks
• More accurate domestic metering should be introduced to facilitate leak reduction inside the household to a level comparable with required supply leak reductions
• More accurate domestic metering could be self-financing, compared to existing Class D meter types, and should be promoted by new regulations