Thames Water is transitioning a significant number of its customers with smart meters to monthly billing, a change that requires customers to actively opt out if they prefer to maintain their current payment schedule. The company, which serves approximately 3.9 million households in London and the Thames Valley, traditionally bills most customers every six months.
The rollout follows a six-month pilot involving 5,000 customers, which concluded in November last year. The broader monthly billing scheme, expected to affect between 110,000 and 120,000 customers, began in June and will continue through December. This initiative targets households equipped with smart meters—approximately 1.2 million customers—devices designed to measure water usage hourly and transmit data electronically, allowing for more accurate billing and earlier detection of leaks.
Smart meters differ from traditional meters, which require manual readings or result in estimated bills, while some customers without meters are charged a fixed rate based on home size and location. Although some customers already use monthly payment plans to spread costs, Thames Water’s new program changes the billing frequency itself for selected smart meter users.
Concerns about the communication accompanying this shift have been raised by customers. Adrian Michaels, a media entrepreneur from Wimbledon, south-west London, reported discovering the change only after receiving a monthly bill shortly after paying a six-monthly sum. After several calls to Thames Water’s customer service, he was informed that the company had switched him to monthly billing without proper prior notice and initially was told incorrectly that he had requested the change via email, a claim he denies and for which no evidence was found.
Thames Water acknowledged Mr. Michaels’s case in response to inquiries, confirming his account was transitioned on June 26 as part of the smart meter monthly billing rollout. The company stated that an email notification was sent on June 29, explaining the change and the option to opt out, though it admitted the notification may have come too late for effective communication. The firm apologized for the miscommunication and said it contacted Mr. Michaels directly to clarify the situation.
A company spokesman emphasized that customers can opt out or revert to six-monthly billing at any time. During the initial pilot, approximately 11 percent of participants chose to return to the previous billing cycle. The spokesperson also denied that the scheme was introduced as a cash flow measure, despite Thames Water’s reported debt nearing £21 billion.
The Consumer Council for Water (CCW), which represents water customers in England and Wales, acknowledged the potential benefits of monthly billing in allowing consumers to monitor usage more closely. However, the CCW stressed the importance of clear communication and insisted that any billing changes must align with customer preferences. The council described unnotified automatic switches as unacceptable.
Thames Water stated that Mr. Michaels is the only customer known to have experienced such a lack of communication but encouraged anyone affected or with billing concerns to contact the company directly.