Business water works differently to household water, and it's easy to end up paying more than you need to if you're not familiar with how the market operates. Here's what you need to know about business water rates and how to keep costs under control.
How business water charges work
Unlike households, businesses in England and Scotland can choose their water supplier, even though the pipes and infrastructure are still run by the regional water company. Your bill typically covers both water supplied and wastewater removed, and charges are based on your usage, measured through a meter, or estimated based on rateable value if you don't have one.
What affects your bill
Several factors influence how much you pay, so it's worth understanding what's driving your costs before you look at switching:
• Whether you have a water meter, since unmetered bills are usually based on estimated usage
• The volume of water you use and wastewater you produce
• Any trade effluent charges if your business discharges non-standard waste water
• Standing charges that apply regardless of usage
Switching supplier to save money
Since the business water market opened up to competition, many businesses haven't switched supplier and may be paying more than necessary as a result. Switching doesn't affect your physical water supply or quality, only who bills you and at what rate. It's worth comparing suppliers periodically, especially if your usage has changed since you last checked, since a supplier better suited to your business type can bring meaningful savings.
Reducing your usage
Beyond switching supplier, reducing actual usage lowers your bill regardless of who supplies you. Fixing leaks promptly, installing water-efficient fittings, and training staff to be mindful of usage in kitchens and bathrooms can all bring meaningful savings over time, particularly for businesses with higher water use like hospitality or manufacturing.
Frequently asked questions
Yes, in England and Scotland the market is open to competition, so you can choose your retailer even though your local water company still manages the pipes and infrastructure.
If a meter hasn't been installed at your premises, your bill is likely based on an estimate using your property's rateable value. Installing a meter often reduces costs if your actual usage is lower than the estimate.
Trade effluent refers to waste water that's different to normal domestic waste water, often from manufacturing or food production. If this applies to you, you may face additional charges alongside standard water rates.
