You’ve read the headlines and heard the warnings. A wave of energy price hikes this year will leave many households struggling to stay afloat.

Water bills in particular are expected to soar after water watchdog Ofwat announced a 3.5% price hike earlier this month starting from April.

This means the average annual bill for water and sewerage is likely to increase to £388 in 2013 from £375 in 2012, according to uSwitch.com.

Hardly good news for the beleaguered consumer.

While there is no need to pay over the odds for gas and electricty bills, you might not have the luxury of being able to switch to a cheaper water supplier.

Luckily you don’t have to just sit back and watch your bills rocket. You can take action.

One of the most effective solutions is to install a water meter where your bill depends on the amount of water your household uses rather than the rateable value of your property – in other words, the amount the property could be rented out for.

If there are more bedrooms than people in a household then a water meter could save you hundreds of pounds.

Top help you learn more about this potential cost-saving gem, we answer some of the most frequently asked questions about water meters.

How do they work?

Similar to a gas or electricity meter, your supplier uses readings from a water meter to calculate how much to charge you for your water and sewerage services. The amount you pay will be based on how much water you use, so the more water you save, the more cash you save.

Do most people have one?

It is thought about 40% of households in England and Wales currently have a water meter but this number is increasing.

How often do I need to read the meter?

Your water company will usually read your meter twice a year but you are encouraged to read it more often to make sure your bills are accurate. If the supplier can’t take a reading, it will just estimate how much water you have used.

I have a large family. Is a meter right for me?

The general rule of thumb is if there are less people in your house than bedrooms (e.g. two people living in a four bedroom family home) then you could save money by switching to a water meter.

For larger families, being on a water meter may not be cost effective as your water consumption may be high. Customers living in compulsory metering areas will need support in regulating and reducing consumption.
Your water company can tell you have much you could be saving if you moved onto a meter.

So, meters are compulsory for some households?

Water meters are not compulsory but recent reports suggests suppliers will start to forcibly make households install water meters to meet government targets to cut water usage.

In the mean time, there are some instances where water companies may insist you have a meter such as if you automatically fill a swimming pool; have a power shower or extra-large bath; use a reverse osmosis water softening unit; or live in a water stressed area where the Government has allowed compulsory metering as part of a plan to maintain secure water supplies.

How do I get a meter installed?

The first thing to do is contact your water supplier to find out what savings you may make by having a meter. If you can make savings, ask for an application form for a meter. Fill in the application form and return it to your company. You can usually do this by post, over the phone or online.
Subject to a survey, the company will fit the meter within three months of receiving your application. You should receive your first water bill within six months of the meter being installed.

Will it cost me anything?

Water meters should be installed for free unless changes to plumbing are required. Your water company should install the meter within three months of your request. If it does not do this, the company should offer to adjust your bill to reflect the charges you would have paid if you had been on a meter.

Where will the meter go?

The water company will decide where the meter goes. Their preference is to fit the meter inside your home – these days they use remote technology and they do not have to enter your house and disturb you to read the meter. Having the meter indoors makes it easier for you to take your own readings so you can monitor your water usage.

Meters can also go outside your home in a small metal or plastic cover in your driveway, garden or nearby footpath or in a small wall-mounted box on the side of your property.

I am a tenant. Can I still apply for a meter?

If you live in rented accommodation, you still have the right to apply for a meter.

It is recommended that you ask your landlord’s permission before applying for a meter. If you have a fixed-term tenancy agreement of less than six months, you must ask the landlord’s permission.

If your fixed-term tenancy agreement is longer than six months, your landlord cannot stop you from having a meter. However, you may need their consent to alter or improve their property.

Can I change my mind?

If you do switch to a meter and find that you are not saving money then you can switch back to unmeasured charging within 12 months. This means that you can test the water, but really do have nothing to lose.

What if I move house?

You should provide your company with a meter reading as soon as you move in or out so that your bill is accurate. The company can charge you using the meter if you are the new occupier of a property (provided it has not already sent you an unmetered bill). It can also install a meter on change of occupier.