OXFORDSHIRE households may have to install water meters under Government proposals to tackle water shortages.

Ministers believe urgent action is required to address acute supply shortages in "water-stressed" areas like Oxfordshire.

And a three-month consultation on plans to give water suppliers powers to seek compulsory metering has been launched.

Thames Water - which serves more than 600,000 people in the county - thinks water meters are a good idea.

Company spokesman Hilary Bennett said: "We believe that metering is the fairest way of charging for water, as it provides a direct link between consumption and cost and it also enables our customers to both monitor and manage their own usage."

Homes with meters use about ten per cent less water than unmetered homes, but only 20 per cent of households served by Thames Water are fitted with them.

Oxford city councillor Alan Armitage, executive member for a healthier environment, said: "Water meters are a really good idea. They are a good way of making people aware of how much water they are using, as well as controlling the amount."

The Environment Agency said it wanted every home in the South East to have water meters within the next eight years.

It said Thames Water was one of 11 water company areas identified as "serious" areas of water stress based on current and forecast demand.

Chief executive Barbara Young said water companies in stressed areas would need to adopt the highest level of water saving measures, including meters.

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