Most householders pay a fixed amount for their water and sewerage services based on the rateable value of their home. For this, they receive an unlimited supply of water for domestic use. Waste water is then taken away and cleaned up. These customers cannot affect the size of their bill by changing the amount of water used.

An increasing number of households (expected to be 20% in 2000-01) receive a metered supply, ie they pay for water in relation to the amount they use. Most newly connected properties are now metered. Taking a shower

Many more customers could benefit from having a meter because they would pay only for the water they use. Under the Water Industry Act 1999, all household customers (including tenants) now have the right to opt for a meter free of initial charge providing fitting is not unreasonably expensive.

Water is becoming an increasingly scarce resource, especially in the South and East of the country. Your company will give you advice about ways to help you use water wisely. Many issue free cistern devices and have other initiatives which can help you cut the amount of water used in your home and garden. All of the companies have a duty to promote the efficient use of water by their customers. Ofwat ensures that the companies do that, checks their performance and publishes details. Choosing water efficient appliances when replacing old machines (such as dishwashers and washing machines) also helps to reduce the amount of water used in the home.

Metering can play an important part in water conservation as a cheaper and more environmentally friendly alternative to expensive resource development. Metering can have a direct impact on demand for water, especially at peak periods, when it can reduce demand by up to 30%. For this reason, most companies now have policies to meter customers who use sprinklers. Metering also helps to detect leaks and so reduces wastage.

Taking a shower: Assuming 35 litres of water: 5p Heating the water: 8p	Taking a bath: Assuming 80 litres of water: 10p Heating the water: 18p
Using a washing machine: Assuming 65 litres of water: 8p Using the machine (including heating some of the water): 18p	Using a dishwasher: Assuming 25 litres of water: 3p Using the machine (including heating some of the water): 14p
Flushing the toilet: Assuming 7.5 to 9.5 litres of water: 1p	Watering a garden: Assuming a hosepipe for one hour uses approximately 540 litres of water: 70p

The average water and sewerage bill works out at 60p per day. This compares with the following:

Small loaf	39-65p
Daily newspaper	30-85p
One pint of milk	26-34p
Litre of sparkling bottled water	79p
A day's TV	28p

WHERE DOES YOUR MONEY GO?

The examples of water use given here compare the cost of water and sewerage services with other expenses and give you a guide to what you get for your money. These figures are based on an average cost per litre of 0.13 pence for water supplied and taken away. They are only a guide as charges vary from company to company and, in practice, may be more or less than the examples given.

In November 1999, the Director General of Water Services set new price limits for the five years 2000-05. As a result, almost all customers will benefit from lower bills for the first time since privatisation. In April 2000, household customers will see an average reduction to their bills of 12.8% (excluding inflation). Average bills for water and sewerage range from £187 (Thames Water Utilities Ltd) to £313 (South West Water Ltd).

The cost of electricity for using the appliances and heating the water is based on an effective price of 7.15 pence per kilowatt-hour. This will vary across households depending on gas and electricity tariffs, the mix of fuels used and energy efficiency.

Average water use is around 352 litres (77 gallons) per household per day. This is around 147 litres (32 gallons) per person.