A Sussex MP is calling for water meters to be fitted to every home in the county.
Norman Baker, MP for Lewes, has discovered the average bill paid by families with a meter is lower than those who pay an estimated annual bill.
In the area covered by Southern Water, the average unmetered bill was £91.20 in the year ending March 2003.
However, the 200,000 households who have had meters fitted, received a bill for only £85.20 - a saving of £6.
Mr Baker, Liberal Democrat environment spokesman, said the total saving if households without meters switched over would be £4,230,720.
Now he is calling for water meters to be fitted in all homes, with provisions to ensure large families on low incomes do not lose out financially.
Mr Baker said universal metering would also help conserve water supplies as well as reduce costs.
He said: "Metered water supplies benefit the environment, as well as the wallet by providing an incentive to conserve water as consumers pay for what they use.
"Some difference in charging between water suppliers is to be expected but to have large differences between the cheapest and the most expensive is clearly wrong.
"There is no logic to the way water is being charged for in the UK. Universal metering at fair prices is a better deal for the public and the environment.
"The Government should take the opportunity that the Water Bill, now going through Parliament, presents to bring some fairness into the system."
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