Home size to determine water bill

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The changes will apply to un-metered houses and will take effect in April. Thames Water said that the charges for 38,000 customers, which are currently based on the average metered bill, had been reviewed to better reflect the actual amount of water used.

Thames water said that households would be divided into three bands. Properties with one or two bedrooms will fall under bands one and two, whilst properties with three or more bedrooms come under band three.

Households in bands one and two will now pay 200 and 217 per year respectively for their water, down from 245 per year. Thames Water said that 240,000 homes would benefit from these lower prices.

By contrast homes with three bedrooms or more can expect to pay slightly more, with prices rising from 245 to 266 per year. Thames Water said around 30 per cent of its customers came under band three.

Mike Tempest, Customer Services Director at Thames Water said, "We know that customers want to pay for what they use. By splitting the charge into three bands, their bills will better reflect the true consumption.

The changes were brought about following a survey by the company of Thames Water customers.