Environment Secretary Owen Paterson has told water firms it is "crucial" that water bills are kept affordable for "hardworking people".
We know that household budgets are under pressure, and keeping water bills affordable is a crucial way we can help hardworking people.
That is why we are pressing hard to make sure customers get a fair deal, by encouraging water companies to look closely at any price increases, introduce social tariffs for vulnerable customers and crack down on bad debt.
The Government said a Daily Telegraph report that thousands of homes would be made to install water meters was untrue.
Defra released the following statement:
There is no requirement for water companies to introduce compulsory water meters as a result of the report that has just been published.
In fact, the number of water companies labelled as seriously water stressed was reduced. Metering is just one of many ways water companies look at to manage water resources in their area.
The Government is doing more than ever before to tackle water prices, securing a £50 rebate off the exceptionally high bills of those in the South West, bringing in social tariffs for the first time and, through our Water Bill, bringing in competition for all non-household users.