HOMEOWNERS in drought-stricken parts of Britain are facing the compulsory installation of water meters. The move would mean higher bills for many families, gardeners and people sharing houses and flats.

Elliot Morley, the Environment Minister, signalled last night that the Government might impose meters in order to save water if current short-ages continue.

Average water bills are about £300 but for many consumers metering would mean bills of at least £400.

A high-consuming family of five in the Thames area could be spending as much as £150 more on their water, utilities analysts predict.

Mr Morley played down the prospect of standpipes in the streets and water rationing but made clear that there was a strong case for water meters in areas such as southern England where demand was at a premium. However, speaking about metering, Mr Morley said: “It’s quite right and proper that we look at that as an option.”

His comments are significant, suggesting that the Government is closer than ever before to imposing compulsory metering. They come just a day after the Environment Agency gave warning of droughts this summer.

At present only 28 per cent of homes have water meters, though the government target is to reach 75 per cent within 20 years.

Meters may be combined with higher charges for the use of water in swimming pools and hot tubs and excessive use in gardens. Paying more for running water at peak times is also under discussion. New “smart meters”, which show how much water is consumed every time a power shower is run or a washing machine is used, are also an option to help consumers to cut down on use.

The South East already has the highest consumption of water in the country: the average daily British water consumption is 34 gallons (154 litres) per person, but in Sutton and East Surrey the average is 41 gallons and in the South East Water company area it is about 39 gallons.

The biggest water companies, Thames Water, with 5 million households, and Southern, with 1.7 million, are now waiting to see if the comparatively small Folkestone and Dover water company is granted a request for the area to be designated “water scarce”.

This status gives the company the right to insist on the installation of meters. It is expected, however, that the poorest families would be offered help to cope with any higher bills to prevent hygiene problems.

Tim Wolfenden, product strategy director at the utilities website Uswitch.com, said: “About 75 per cent of the population currently have fixed-rate water bills, linked to the rateable value of their houses.

“Losers under a compulsory-metered system would be families who use a lot of water for the size of their house because there are people at home during the day, doing a lot of washing and so on. They could face an extra £100 to £150 on average bills.”

The prospect of water meters was raised as the Environment Agency warned water companies in southern England that they need to instigate hosepipe bans by early April at the latest to help to safeguard supplies through the summer. Without action it said that there could be queueing in the streets for water or cuts in supply at peak times.

Hosepipe and sprinkler bans are already in place in some parts of the South East, including Kent and Sussex. Since October 2005, the region has received about 11in of rain. The long-term average for this period is 15in.

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