Southern Water has today set a new precedent for the water sector after announcing the introduction of a "seasonal tariff" which will see customers charged more in the summertime than for the rest of the year. Customers will pay 6% more on their standard rate for water between June and September and 2% less for the rest of the year in a move which is certain to unnerve consumers and businesses.

The company is suggesting that the vast majority of people would pay the same amount for the water throughout the year which prompts the question why make this change in the first place?

As part of the company's investment plan it will also install just under 500,000 water meters over the next five years ensuring that 93% of all customers will have a water meter by 2015. While there is no doubt there are benefits to having water meters, with customers only paying for what they use, there is some suspicion as to why the company is making these changes at this point in time. The move has been supported by the Environment Agency and with predictions that UK river flow could fall by up to 35% by 2050 it is likely other water companies will follow suit.

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