Consumers will rightly feel aggrieved at the news that water bills are to increase at more than twice the rate of inflation. Much of the water companies’ infrastructure does need upgrading but consumers might wonder why shareholders are not taking a greater share of the cost.

As there is no competition between water companies, consumers cannot switch supplier as they can with gas, electricity, telephone, broadband and pretty much every other service. But this does not mean that there are not ways for consumers to save. By switching to a water meter and reducing water consumption bills can be cut. Every water company is obliged to a fit water meter for free in any property that wants one – unless there is a particular reason why it would be impractical.

The average household in England and Wales would save around £40 a year by installing a meter. However, not all households will make savings – it entirely depends on your water consumption. A large family with lots of clothes to wash and baths to have should probably stick with the cuttent rate-based system.

Once you have switched to a meter, you have only one year to switch back. The final point to consider is that installing a meter could potentially reduce the value of your home as it might deter some people from buying.