Water Bills Can you cut the cost?

How much does it cost to �spend a penny'? Encouragingly, for anyone with a water meter it will be roughly 1p, often substantially cheaper than the old style bill system.

In fact, for some in England and Wales, switching to a meter may save �200 a year.

Unfortunately, in Scotland it�s not free to have a water meter installed (it�s actually quite expensive) so, unless you live alone in a manor-type-property, you should stick to billed payment.

Water bills vs water meters

You can't switch water provider as while the market is privatised, it's not open to competition. This means the most important decision is how you're billed.

The traditional way

Around 30% of homes have a water meter, most are still being charged on the �water bill' system. Here the price is fixed depending on a home's �rateable value', and the amount of water used is irrelevant.

This roughly means that the more your home can be rented out for, the more you'll pay. It's staggering that even though rates were abolished in 1990, water bills still depend on them. There are no plans to change this archaic system and, unfortunately, no prospect of getting your home's value re-assessed.

The average un-metered bill for 2011/2012 in England and Wales will be �379, while the average metered bill is �325 � though it varies heavily with region. However, while in England and Wales (though not Scotland or Northern Ireland) water companies are privatised, there's still no competition. You can't switch to a different water company � like you can in the gas and electricity markets - to get a cheaper supplier.

The modern measurable way

Yet the fact you can't switch supplier doesn't affect your chance to save. You can opt to fit a water meter, where your bill relies on your consumption.

However, it's not just your water use it measures; many companies have accused me of talking excrement in the past but in this case it's true � what comes in must go out, and water meters usually calculate the sewerage bill too.

Calculating the saving

It's important first to see whether a meter is financially worthwhile. As a rough rule of thumb, if there are more bedrooms in your house than people, you should check out getting a meter.

Of course, for those on a water meter, saving water means saving money, but reducing the amount of water used is of course also good news for the environment. Nowadays we use an average 150 litres of water a day per person; our grandparents only used around 20! For more hints and tips on conserving water read the Great 'Use Less Water' Hunt.

When should you switch?

Water companies must fit meters free of charge upon request - except in Scotland - unless it's justifiably impractical (for instance, those living in blocks of flats with shared pipes).

On the rare occasions this excuse is invoked, if your water usage is limited, request an �assessed charge bill� where rather than rateable value, your bill is worked out using details such as how many people live in your flat.

Are you due a light sewerage rebate?

While most of the water meter billing system is straightforward, there�s an assumption that �what goes in, must come out� and therefore the amount of water used creates roughly an equivalent amount for the sewerage system to deal with.

In fact the general assumption is 90-95% goes back, but this can be wrong in a couple of specific circumstances; and if that�s the case you can get serious money back.

• Do you have a �soakaway?�
  
  A �soakaway' is a large underground pit of gravel which collects water from your roof or drive. You're more likely to have one if you live in a small town or village than an urban area. If unsure, check your property deeds or visit your local authority to look at the planning application.
  
  The water companies should give rebates to any customer whose surface rainwater goes into a soakaway rather than the mains sewers, this is usually between �20 and �40 and can be claimed whether you're on a meter or not. To apply for a rebate, simply fill out your water company's form, call or go online to request it.
  
• Do you have a pond, large garden or swimming pool?
  
  If you�re on a meter and use a substantial amount of water from an outside tap, you can contact your water company to ask for a reduction in your bill. If you can show that you haven�t poured the water down the drain you shouldn�t have to pay the sewerage charge.
  
  
  
  The usual circumstance when this would apply is a large one-off amount of water use, such as filling a pond or swimming pool. If it�s a more regular, ongoing use, then it's possible to prove it by fitting a water meter to your outside tap, though that's expensive.
  
  
• Do you have a septic tank or cesspit?
  
  If you're in an area with no connection to mains sewerage so have a cesspit or septic tank you don't have to pay sewerage charges. This only applies to a handful of people, but if you do have one you're entitled to between �110-�220 off depending on which water company serves you.
  

Refused rebate request? Take it to the Consumer Council for Water

If your water company won�t give you a rebate or you feel they should reasonably have known you were not connected (eg, a block of flats and other residents already receive an allowance) and they will not backdate the discount to the beginning of the current billing year get in touch with your local Consumer Council for Water office who should be able to help.

The Size of the Saving
By water billing area

Picking the right option for water bills can make a serious difference. To indicate the scale of saving, look at a four bedroom home with a current bill of �320 a year.

With four residents in the South West Water area it's much better to stick to the standard bill, yet with just two people in the house in the Northumbrian area a meter would save �82 a year. The same household in the Thames Water area would save a huge �131 - substantially more than a drop in the ocean.

The table below is based on 2010/2011 prices as full details are not released by water companies until nearer 1 April. You can see a regional table from Ofwat.