Smart meter alert: Households may need to install two units under new Labour plans

Labour is considering plans to roll out smart water meters nationwide as part of a proposed "family bathtime tax" that would charge higher rates to heavy water users.

The move would force owners of larger properties and gardens to pay more for their water bills through progressive tariffs.

Ministers will support utilities companies trialling new tariffs that charge the heaviest users of water a higher rate.

Introducing progressive water bills would require rolling out smart water meters nationwide so that customers' consumption can be tracked in real time or at short intervals.

Around 60 per cent of homes in England currently have a water meter, but the vast majority use conventional meters from which periodic readings are taken.

The plan has raised alarm bells among experts, particularly as British households continue to pay the price for the botched smart meter rollout for energy bills.

The initial target was to have a smart meter installed in every home by 2020, but this has now been reduced to 74.5 per cent by the end of 2025, with devices currently installed in just 68 per cent of homes.

The programme is forecast to cost over £13.5billion. An estimated 4.3 million smart meters are faulty and unable to send readings back to suppliers remotely, leading to customers being sent sky-high bills that do not reflect their usage.

The National Audit Office said in 2023 that 37 per cent of smart meter customers surveyed reported having issues with their smart meter, including no automatic readings, inaccurate bills and connected handheld devices not showing any information.

Nick Hunn, founder of the wireless technology consulting firm WiFore, warned that a nationwide rollout of smart meters would overcomplicate bills, undermine customers' privacy and allow cyber attacks to cut off the nation's water supply.

"We were told that the big benefit for smart meters would be lower bills. We can see by the number of complaints that this didn't happen," he said.

LATEST DEVELOPMENTS:

• Energy bills alert: Thousands of Britons set for £1k payouts after prepayment meter scandal - you eligible?
• Smart meter warning: Over 300,000 homes face higher bills and loss of hot water as meters set to stop working
• Smart meter alert: Ofgem announces energy shake up as thousands left without power overnight

He continued: "We would see the same thing with smart water meters moving from a system that's quite simple to one that is needlessly complicated and more likely to go wrong."

A spokesman for Open Rights Group said smart water meters posed similar risks for consumers, adding: "Smart water meters could be used to track how many people are in a property, analyse daily routines, and reveal when you cook, shower or water your garden.

"This is a clear example of how everyday infrastructure can quietly become a surveillance tool without public awareness or consent."

Concerns have also been raised over consumer protection and the risk of remote disconnection.

Electricity companies are able to switch off electricity remotely if customers have a smart meter, but only under very narrow circumstances and after taking all reasonable steps to manage debt repayment.

However, it was reported that some energy suppliers are forcibly installing prepayment meters remotely by switching customers' smart meters from credit to prepayment mode.

Campaigners have said that doing this amounts to disconnecting customers from the grid "by the back door", as anyone unable to pay on a prepayment meter will lose power.

Hunn warned that digitally connecting the water system raises the threat of a widespread cyber attack.

"If someone hacks into that system, they can turn off large chunks of the country's water supply," he said.

A Government spokesman dismissed the criticism, saying: "This is absolute rubbish from the same Conservative Party that broke our water industry.

"After their rule, water bills skyrocketed and we had record levels of sewage being pumped into our rivers.

"While the Tories are making up rubbish, the Labour Government is focused on fixing our water industry, raising over £100billion to upgrade pipes and cut sewage by nearly 50 per cent."

Kevin Hollinrake, the shadow housing secretary, said Labour had been "caught red-handed" planning a new tax on water usage with the help of "Big Brother technology".

A Smart Energy GB spokesman defended the smart meter programme, saying 91 per cent of the 39 million smart meters across Britain are operating as they should, helping households and businesses better manage their energy use and save money.