Watch out – your water bill could be about to rise. Ofwat, the water industry regulator, announced the results of its five-yearly price review last week and left many consumers disappointed. It insisted that the average annual water bill must fall by a mere £3 (before inflation is taken into account) to £340 by 2015. That total may sound all right, but bear in mind that water prices are set separately by each regional company.
So, for example, warns the Consumer Council for Water, “South West Water customers without a meter could see a 29% rise in bills”. Ofwat says it didn’t cap prices more severely because it wants the water firms to invest more than £22bn in the water and sewage infrastructure over the next five years.
But you can do something about this; reducing your water bill isn’t impossible. “People can shop around for the best deal on many things, but not water. Our job is to do this for them,” says Regina Finn, Ofwat’s CEO, in The Daily Telegraph. In light of the above ruling, such words are hardly reassuring for customers of firms likely to impose the biggest rises.
But there are a few ways you can cut your water costs. The obvious one is to switch to a water meter and cut the amount you use. But this can backfire and big families who use a lot of water could find their bills rise. The rule of thumb is that if there are more bedrooms than people in your house, then a water meter will save you money. In England and Wales they’re free to fit, and if after 12 months your bills are more expensive, you can switch back to standard billing.
If you’re a water guzzler, or live in Scotland where meters are expensive to fit, then you’re best off sticking with normal billing. Being frugal with your water will then make no difference to your bills – but at least it’s environmentally friendly.
There is one other way you can cut your bills, given they work on the principle of ‘what goes in, must come out,’ says MoneySavingExpert.com’s Martin Lewis. A big chunk of your bill pays for your use of the sewer system. But if you are not using it heavily you may be able to get some money back. If you have a ‘soakaway’ – a large underground pit of gravel that collects water from your roof or drive – you can get a rebate of around £20-£40 from your water firm. Check your property deeds, or visit your local authority to see if you have one.
If you have your own septic tank or cesspit, you don’t have to pay sewerage charges. That’s worth anywhere between £110 and £220 back from your water supplier. Which will be some consolation the next time you have to empty it.