COMPULSORY water meters will be forced on 65,000 consumers in the southeast corner of England after a company won the right to insist on their installation.

About a third of customers supplied by the Kent-based Folkestone and Dover Water Services face higher bills after the region was designated an “area of water scarcity” yesterday. The company plans to install meters at the homes of 90 per cent of its customers by 2015. It is feared that large, low- income families will be the hardest hit by the forced transfer from fixed-rate bills, which are linked to the rateable value of properties.

Elliot Morley, the Environment Minister, signalled last week that the Government might impose meters to address shortages. Granting Folkestone and Dover’s application yesterday under the Water Industry Regulation Act, he said that he would be paying “particular attention” to the impact of meters.

But Richard Sturt, of the Consumer Council for Water, said: “Folkestone and Dover is a very deprived area. Large families who use lots of water and are paying relatively little because they live in a low-value property will find themselves paying much more.”

David Walton, managing director of Folkestone and Dover Water Services, said that the company was doing all it could to help those who struggled with their utilities bills. “Ultimately it is a social issue and needs to be looked at by government, which is something we will lobby for,” he said.

According to figures prepared by the company, 40 per cent of customers already use water meters and 70 per cent will pay the same or less under a metered system.

Those set to benefit most include single people and elderly couples in high-value properties, whose water usage is low in relation to the value of their home. However, Mr Sturt said that he expected average bills across the region, which at present are £153 excluding charges for sewerage, to go up by around £15.

“Consumers pay for all water company costs, and meters are an expensive solution,” he said. “Each meter costs the company about £240 to install, plus they have to be read and maintained and only last around ten years. They are spending millions of pounds to save around two mega-litres of water a day.”

David King, director of water management at the Environment Agency, said: “We cannot expect our environment to provide a constantly increasing supply of water. Metering is the fairest way to pay for it.”

Folkestone and Dover is the only company so far to request water scarcity status, but with recent rainfall in the region well below average and several neighbouring water suppliers having already imposed hosepipe bans, their experience will be closely watched.

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