Sir,
Your article on the imposition of water meters by the Folkestone and Dover Water Services (March 2) correctly points out their benefits. They encourage consumers to think carefully about their water consumption. Their use provides information that can help companies manage water resources more effectively, and improves companies’ ability to pinpoint leaks.
However, installation of water meters also creates complications and may add to costs.
- Confusion and adverse reaction are created as some customers see bills fall whilst others see tariffs increase;
- Volatility of water company revenues increases because a greater portion of revenue depends on consumption, and there is a negative impact on debt, particularly if customer queries result in payment delays;
- A substantial investment is needed in the infrastructure to capture, process and analyse meter data;
- Operational costs to retrieve and process data go up as do customer service costs as customers have more reasons to query their bills.
Water companies will need to think carefully through these and other issues when they consider their metering strategy. Although the environmental benefits are significant, the introduction of water meters may not be the panacea that some people hope; indeed, the costs may outweigh the benefits.
