Households across Britain could see their energy bills fall by up to 17% under a major new government plan to accelerate the installation of smart meters. The pledge, set to be detailed in a forthcoming Water White Paper, aims to equip half of all UK homes with the digital devices within the next five years.
Ending Estimated Bills with Smart Tech
The core of the proposal is a rapid expansion of smart meter technology for both electricity, gas, and water. These devices provide near-real-time tracking of usage, putting an end to inaccurate estimated bills that can lead to overcharging. For water, this technology is also a vital tool for detecting hidden leaks, which waste billions of litres annually and drive up costs.
Currently, while 61% of households have a traditional water meter, only 12% benefit from a smart meter. The government, led by Environment Secretary Emma Reynolds, argues that giving families precise, accessible data on their consumption is key to empowering them to cut back and save money.
Mandatory Labelling to Drive Efficiency
Alongside the smart meter push, ministers will introduce mandatory water efficiency labelling on household appliances. Similar to schemes already successful in Australia, labels will be applied to products like washing machines, showers, and dishwashers.
Studies indicate that using A-rated labelled products can reduce water usage by a significant 63 litres per person each day. The government estimates this initiative alone will save households a combined £125 million over the next ten years—comprising around £57 million on water bills and £71 million on the energy used to heat water.
Broader Reforms for a "Fit for the Future" System
The plans form part of a sweeping overhaul of the water sector designed to rebuild infrastructure and restore public trust. Other key measures include the creation of a new, independent and powerful Water Ombudsman to ensure customer complaints are resolved swiftly and fairly.
Environment Secretary Emma Reynolds stated: “We’re driving forward practical solutions, from mandatory water efficiency labelling to encouraging the rollout of smart meters. Our Water White Paper is the next step in rebuilding broken infrastructure, restoring public trust, and delivering a water system fit for the future.”
The comprehensive Water White Paper is scheduled for publication early next week. The government asserts that the combined reforms will not only cut household bills but also conserve precious water supplies, delivering benefits for both family finances and the environment.
