Charge hot tub users more for water, regulator urges

Ofwat says firms should penalise homes with pools or sprinklers and reward those who cut down usage

HOUSEHOLDS could be charged more if they use sprinklers or hot tubs under plans proposed by the water regulator.

Households that have higher-thanaverage water use could be put on a different tariff to those on low or average levels under plans to penalise nonessential use. This could include households with swimming pools, hot tubs or large-scale sprinkler systems.

Bills could be cut for users who save water and reduce pollution and flooding risks, by installing water butts or permeable driveways. The Government wants to cut household water use by about a third in coming decades as climate change and a growing population put pressure on supply.

Water companies have been criticised for not managing resources and tackling leaks after customers were placed under hosepipe bans during the ongoing drought. Ofwat is calling on water companies to trial billing schemes to encourage customers to cut their water use and help households with the cost of living crisis.

It notes that premium tariffs for highwater-use households have “not generally” been found to reduce demand in countries where they have been tried including Australia, Spain and the US.

Several water firms are understood to back the idea and are actively looking at plans to charge high water users more.

Other proposals from the regulator include charging customers more during times of high demand, or during a drought, to encourage demand reduction, and reducing bills during winter.

Raising bills for high-water users would also lead to lower bills for households using less, as overall water company profits are limited by the regulator.

But the regulator warns that it could penalise big families by charging them at a premium rate even if individuals have an average water consumption.

The Consumer Council for Water (CCW), which represents bill-payers’ interests, said new pricing schemes should not penalise poorer households.

Andy White, from the CCW, said: “Given the mounting pressure on our water resources and people’s budgets, we think there is value in exploring the potential for using tariff structures to incentivise people to reduce their water consumption, while giving them more control over their bills.”

Such schemes would require households to install water meters, which are currently mandatory only in areas classified as being “water-stressed”. Some 60 per cent of households use meters and are billed based on their usage.

Water firms would be expected to identify homes with leaks based on water use and alert the homeowner to avoid them facing high charges, Ofwat said. David Black, Ofwat’s chief executive, said: “We are all very aware of the impact of the rising cost of living and we want to see the water sector become more active, assertive and inventive to support customers who are struggling to make ends meet.”

The Government wants to see individual water use cut from an average of 140 litres per person each day to 100 litres.

Critics argue that water companies should do more to tackle their own leaks, which account for around 20 per cent of supply, and to store and transport water.