Paying for water isn’t something most people think about often, but what if changing the way customers are charged could actually help save money, support fairer bills, and protect the environment?
That’s the idea behind the WaterSave tariff trial, a first of-its-kind pilot launched in October 2023, making us the first in England to trial a new approach to water charging. Instead of a flat rate for every litre used, the WaterSave tariff uses a rising block structure. This means the more water a household uses, the more they pay per unit. In short, people who use less water pay less per litre, and heavier users pay more.
The aim is to explore whether this approach can make water bills fairer, more affordable, and if it encourages people to think more carefully about how much water they use. To test the impact, the trial group involved around 1,500 metered households in Stevenage, Hertfordshire. Their usage and billing were compared to a control group of customers on standard tariffs. Trial participants also received extra support and communications, including personalised usage updates and tips. In essence, the trial looked at both the effect of pricing and the value of clear, helpful communication.
Before the trial began, early modelling suggested that around two-thirds of customers would be better off under the new tariff if their usage stayed the same. But real-world data from the first year of the trial was even more encouraging, it showed that three out of four customers could expect to pay less for their water.
Better still, early signs show the tariff is changing customer behaviour. The trial group used noticeably less water than expected. According to meter readings and a demand modelling tool, average use in the trial group is around 9,576 litres lower per property per year, that’s a saving of about 12 litres per person per day. Meanwhile, the control group (on the standard tariff) is using slightly more water than predicted. Affordability is also improving. Billing data shows that customers in the trial group are paying off arrears faster than those in the control group, suggesting that the new tariff—combined with more frequent and clearer information—is helping people manage their bills more effectively.
To better understand how customers are feeling about the new system, a detailed research project with Blue Marble Research was launched in October 2024. Feedback so far shows that most people find the new pricing approach acceptable. There are some valid concerns, particularly around fairness for larger families and vulnerable households. The trial continues until September 2025, with collaboration from Ofwat and the (CCW) Consumer Council for Water. As results come in, insights from the WaterSave tariff trial will help shape the future of water charging, not just for this region, but potentially for the whole industry.
For us, smarter billing isn’t just about saving water, it’s about supporting customers, protecting our environment, and creating a system that works for everyone.