Water companies in areas designated as 'water-stressed' can legally compel customers to install water meters, according to consumer experts. In regions where demand for water approaches or exceeds supply, water companies can seek government permission to implement compulsory metering programs as a means to reduce overall consumption. Residents in these areas generally cannot refuse the installation.

A water-stressed area is defined as a region where water demand is close to or exceeds available supply. Parts of the East of England, for example, are among the driest regions in the UK, facing increased pressure on water resources due to a growing population. Water companies serving these areas can apply to the government for authorization to introduce mandatory metering.

Since 1990, all newly constructed homes in England and Wales have been required to have water meters installed. These devices track household water usage, allowing suppliers to calculate bills based on actual consumption. For households without meters, water usage is typically estimated by the supplier, with bills based on the property's 'rateable value'—a measure tied to its historic value, location, and size, as determined by the Government's Valuation Office Agency. This estimation system can sometimes lead to larger families using less water than estimated paying more, while individuals in larger, more valuable homes might pay more than they would with a meter.

For customers in areas where metering is not compulsory, there is often an option to trial a water meter for up to two years, with the possibility of reverting to an unmetered bill if unsatisfied. However, in areas where compulsory metering has been approved, refusal is typically not an option.

While installation may be mandatory, advice suggests that households with fewer occupants than bedrooms are generally more likely to save money with a water meter. For larger families or those with high water usage habits, such as regular car washing or extensive garden watering, metered bills might indeed be higher. Consumer advice bodies offer water meter calculators to help residents estimate potential costs.

Water companies often provide resources to help customers reduce their water consumption and associated bills, including water-saving devices and advice on practices like showering instead of bathing or using buckets for car washing. Additionally, social tariff schemes are available for low-income households, and the WaterSure scheme can cap bills for eligible metered customers with three or more children or a medical condition requiring significant water use.