How the business water market works
Business water is split between two kinds of company. The wholesaler is your regional water company. It owns the pipes, treats and supplies the water and takes away wastewater. You cannot change your wholesaler, because it depends on where your premises are.
The retailer is the company you deal with. It sends your bills, reads your meter, answers your calls and handles any problems. This is the part you can switch.
| Area | Can businesses switch retailer? | Regulator |
|---|---|---|
| England | Yes, eligible non household premises since April 2017 | Ofwat |
| Scotland | Yes, since 2008 | Water Industry Commission for Scotland |
| Wales | Only sites using 50 megalitres or more a year | Ofwat |
| Northern Ireland | No, business water is supplied by NI Water | Utility Regulator |
Eligibility applies to each premises, not to the business as a whole. A shop, office, restaurant, care home or factory will usually qualify. A home you work from usually will not.
What makes up your business water bill
| Charge | What it covers |
|---|---|
| Fresh water | The water you use, charged per cubic metre if you have a meter. |
| Wastewater | Taking away and treating used water, usually based on your fresh water use. |
| Surface water drainage | Rainwater running off your property into the public sewer. |
| Highway drainage | Rainwater from public roads, shared across connected properties. |
| Standing charges | Fixed charges for your meter and connection, paid whatever you use. |
| Trade effluent | Extra charges if you discharge anything other than normal wastewater, such as fats or chemicals. |
Most of your bill is made up of wholesale charges set by the regulator. The retail part is smaller, but it is the part retailers compete on, and it is where account mistakes are usually found.
Ways to reduce your business water bill
- Compare retailers. Retail prices and service vary, and some retailers offer discounts for longer contracts or direct debit.
- Ask for a meter. If you are billed on the rateable value of your premises, a meter could be cheaper for a low use business.
- Stop estimated bills. Regular meter reads mean you only pay for the water you actually use.
- Check for leaks. A small leak on your side of the meter can quietly add hundreds of pounds a year. Take a reading when the site is closed and check it again before opening.
- Claim drainage rebates. If rainwater from your roof goes into a soakaway, you should not be paying full surface water drainage.
- Review wastewater allowances. Businesses that use water in their product, such as cafés, bakeries or garden centres, may be able to reduce wastewater charges.
Business water for different types of business
Water costs vary a lot by sector. An office mainly uses water for toilets and kitchens, while a restaurant or café uses far more for cooking, washing up and cleaning. Salons, gyms, care homes and car washes are also heavy users, so even a small saving per cubic metre adds up over a year.
If you run several sites, one retailer can usually manage them all on a single bill with one account manager, which saves time and makes it easier to spot unusual usage.
Compare business water alongside your energy
Water is often forgotten next to business electricity and business gas, but the same rule applies: if you never review it, you probably pay more than you need to. Tell us about your business using the form above and a trusted UK broker will check your water, electricity and gas together, free and with no obligation.