At present, no domestic user is allowed to use a hosepipe when a ban is introduced. Under CentreForum's scheme, commercial users in a drought year will be offered compensation for reducing their consumption. The water saved could then be sold to domestic customers.

"Water companies should not be encouraged to pick on any particular group. Instead we should be offering compensation to industrial and agricultural users who agree to use less water. The water saved could be offered to water meter households who want to use hosepipes. Since households pay more for water than industrial and agricultural users the price difference can be used to pay the compensation."

- Tim Leunig, Chief Economist, CentreForum

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