Government plans to consult on widespread metering for seriously water-stressed areas have been welcomed by consumer groups as "common sense".
Environment minister Ian Pearson confirmed that a consultation on metering will go ahead early next year.
It follows work by the Water Saving Group to identify long-term efficiency measures that will help to protect the sustainability of the water supply.
The focus of the group's proposals is on making water companies in areas of serious water stress consider compulsory meters, where that is the best way of saving water.
The group, chaired by Mr Pearson and includes representatives of Ofwat, the Environment Agency, the Consumer Council for Water, Water UK, Waterwise and communities and local government, suggests the process of seeking permission to compulsory meter be incorporated into a water company's 25-year plan.
Draft plans will need to include a full assessment of the cost-effectiveness of metering in a particular area, and take into account sustainability, water supply and demand, costs and effects on customers.
The plans are to be subject to full consultation, and afterwards it would be for each company to decide whether to include a programme for introducing compulsory metering. However, if it was felt a case for metering was not strong enough, ministers could ask for the removal of proposals from a final plan.
Mr Pearson said: "The Water Saving Group's proposals are by far the most sensible way forward because they ensure the relevant companies will incorporate metering in their draft 25-year resource management plans, which will be subject to full consultation."
However, he emphasised that the consultation would not propose national compulsory water metering and the plans should not be seen as compensating for water companies' poor performance on leakage targets.
Dame Yve Buckland, chair of the Consumer Council for Water said: "These proposals show a common sense approach to metering. Widespread metering makes most sense in those areas which most need it: one size doesn't fit all water consumers."
