Compulsory water metering announced

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Only firms in areas of "serious water stress" are eligible for the measure, according to the Department for Environment, Food and Rural Affairs (Defra).

At present twelve firms in England would qualify to apply, according to Environment Agency criteria. They can seek compulsory metering as part of the 25-year forward plans which all water firms have to submit to Government.

That measure would only be granted alongside other proposals to ensure security of supply, a Defra spokeswoman said.

Water firms can currently apply separately to Government to bring in compulsory metering but the measure is not factored into their long-term plans.

To date, Folkestone & Dover Water is the only company to have applied for and been granted permission to introduce compulsory metering.

Announcing Defra's new measures, Environment Minister Phil Woolas said companies would have to make a "strong case" in their forward plans to get approval for compulsory metering. "This is not a green light for universal metering, and it in no way absolves companies from their responsibility to deliver on leakage targets," he said.

The inclusion of proposed compulsory metering in water firms' long term plans will come into effect from 2009.

Water metering in England and Wales currently stands at around 30% and is increasing by 2% a year.

Last month a House of Lords Science and Technology Committee report recommended it be made easier for firms in water stressed areas to impose compulsory metering.