Thames water lose 1/3 of their supply in leaks. They made £650 million after taxation. They did invest £750 million in capital investment, but this includes non-water provision related things. They paid dividends (mostly the owners) £191 million.
On the other hand, nobody wants new reservoirs built, people want more houses built so the population will increase in the SE. A reservoir has recently been turned down near where I live. Once full, it would had just about covered South East Water's daily loss through leakage.
Investment on water storage (ie reservoirs) and stopping wastage must be an answer - or stopping an increase in population above the ability of the natural resources. Whilst I'm not on a meter (and living in a small house with 2 kids, water rates are low and washing machine usage is high, I don't want to be), putting people on a meter so they at least thing about leaving hosepipes on overnight to water the garden must be a good idea. All other utilities are paid for by supply, why not water?
I guess nobody has bothered with GreyWater because a lot of people are on a set rateable value rather than meter, so not bothered about usage.