Water is an essential service for many businesses.
For some organisations, water is mainly used for kitchens, toilets and cleaning. For others, it is an important part of daily operations.
Understanding your water supply can help you manage usage, understand bills and control costs.
However, business water works differently across the UK. Your options can depend on whether your premises are in England, Scotland, Wales or Northern Ireland.
What Is Business Water?
Business water refers to water and wastewater services provided to non-household premises.
These can include:
- Offices
- Shops
- Restaurants and cafés
- Hotels
- Factories
- Warehouses
- Farms
- Schools
- Charities
- Public buildings
The amount of water used can vary greatly between businesses.
Therefore, it is useful to understand how your business uses water and how you are charged for it.
Water Supply and Wastewater
Your business water bill may cover more than the water coming from the tap.
There are usually two main services.
Water supply covers clean water delivered to your premises.
Wastewater covers water that leaves the premises through the sewer system.
Other charges may also apply. These can include drainage or trade effluent charges.
The exact charges depend on your location, premises and the services you receive.
How Is Business Water Measured?
Many business premises have a water meter.
The meter records the amount of water used. This is normally measured in cubic metres (m³).
One cubic metre equals:
1,000 litres of water.
For example, suppose your meter changes from:
1,250 m³
to:
1,275 m³
Your business has used:
25 m³
This equals:
25,000 litres of water.
Regular meter readings can help you understand how much water your business normally uses.
Understanding Your Business Water Bill
Business water bills can contain several different charges.
These may include:
- Water supplied
- Wastewater services
- Fixed charges
- Meter charges
- Drainage charges
- Trade effluent charges
- Other service charges
The exact structure varies.
Therefore, check each part of your bill rather than looking only at the final amount.
Actual and Estimated Meter Readings
Your bill may be based on an actual meter reading.
However, it may sometimes use an estimated reading.
An actual reading shows the amount recorded by your meter.
An estimated reading is used when an up-to-date meter reading is not available.
Estimates can be higher or lower than your real usage.
Therefore, regular meter readings can help keep your bills more accurate.
Business Water Across the UK
The business water market is not the same throughout the UK.
This is particularly important if you are thinking about comparing or changing your water retailer.
The rules are different in England, Scotland, Wales and Northern Ireland.
Business Water in England
Most eligible non-household customers in England can choose their water and wastewater retailer.
This includes businesses and other organisations using premises mainly for non-household purposes.
The retailer deals with customer-facing services such as billing and account management.
However, changing retailer does not mean that different pipes suddenly supply your business.
The underlying wholesale water and wastewater services continue to be provided through the regional infrastructure. Retailers buy these wholesale services and provide the retail service to eligible customers.
Therefore, an English business may be able to compare retailers based on factors such as:
- Price
- Billing
- Customer service
- Account management
- Water efficiency services
Business Water in Scotland
Scotland has its own competitive business water market.
All non-household and public-sector customers have been able to choose their retailer since April 2008. This applies regardless of the size of the business or its water use.
The system separates the wholesale and retail sides of the market.
Scottish Water continues to operate and maintain the water and wastewater network.
Licensed retailers buy wholesale services from Scottish Water. They then provide retail services to businesses and other non-household customers.
These retail services can include:
- Billing
- Meter readings
- Payment arrangements
- Customer service
- Water efficiency advice
Therefore, businesses in Scotland can compare retailers and choose one that suits their needs.
The Scottish non-household retail market is regulated by the Water Industry Commission for Scotland (WICS).
Business Water in Wales
The position in Wales is different.
Businesses supplied by a water company whose area is wholly or mainly in Wales generally need to use at least 50 megalitres of water each year to qualify to switch their water retailer.
One megalitre is one million litres.
Therefore:
50 megalitres = 50 million litres.
This is a very large amount of water.
As a result, most small businesses in Wales will not meet the threshold.
There is another important difference. Eligible Welsh customers can switch their water retailer, but the equivalent competitive sewerage retail arrangements available in England do not apply in the same way.
Therefore, businesses in Wales should check their eligibility before trying to compare water retailers.
Business Water in Northern Ireland
Northern Ireland has different arrangements again.
Non-domestic customers are charged for water services by Northern Ireland Water (NI Water). Businesses connected to the public sewer can also face sewerage charges. Trade effluent charges may apply where relevant.
Charges can depend on whether the premises have a water meter.
For metered premises, charges can include a standing charge and a variable charge based on water consumption.
Unmetered premises can be charged differently, including charges linked to the property’s valuation.
Therefore, businesses in Northern Ireland should not assume that the competitive retail arrangements available in England or Scotland also apply to them.
Business Water Across the UK at a Glance
| Location | Can most businesses choose their retailer? | Main point |
|---|---|---|
| England | Yes | Eligible non-household customers can generally choose a water and wastewater retailer. |
| Scotland | Yes | All non-household customers can choose a licensed retailer. |
| Wales | Usually not | A high annual water-use threshold generally applies to switching eligibility. |
| Northern Ireland | No equivalent open retail market | NI Water provides water and sewerage services to non-domestic customers. |
Therefore, advice to simply “switch your business water supplier” does not apply equally throughout the UK.
Your location matters.
Why Is Scotland Different?
Scotland separates the physical water network from the retail service provided to businesses.
Scottish Water remains responsible for the wholesale network.
However, businesses can choose which licensed retailer handles the customer-facing side of their water and sewerage services.
This means changing retailer does not change where the water comes from.
Instead, you are changing the company that provides your retail service.
Checking for Water Leaks
An unexpected increase in water use can sometimes indicate a leak.
Leaks are not always easy to see.
For example, water could escape from an underground pipe or hidden equipment.
If your usage suddenly increases, compare your recent meter readings with earlier readings.
You can also take a meter reading when the premises are not using water.
Wait for a suitable period and then check the meter again.
If the reading has increased, there may be water use somewhere on the premises that needs investigating.
Reducing Business Water Use
Using less water can help reduce costs.
Simple measures may include:
- Repairing leaking taps
- Repairing leaking toilets
- Checking pipes for leaks
- Using water-efficient fittings
- Reviewing cleaning processes
- Monitoring water consumption
- Maintaining water-using equipment
- Avoiding unnecessary running water
However, the biggest opportunities will depend on your type of business.
A small office will have very different requirements from a hotel, restaurant or factory.
Water and Energy Costs
Water use can also affect your energy costs.
Cold water needs relatively little energy at the point of use.
However, hot water must be heated.
Therefore, reducing unnecessary hot water use can reduce both:
Water costs
and
Energy costs.
This can be particularly important for businesses that use large amounts of hot water.
For example:
- Hotels
- Restaurants
- Cafés
- Hairdressers
- Leisure facilities
- Laundries
- Care facilities
Therefore, water efficiency and energy efficiency can sometimes go together.
Wastewater
Much of the water entering a business eventually leaves through the wastewater system.
Therefore, wastewater charges can represent an important part of the bill.
However, not every business returns the same proportion of water to the sewer.
For example, some water may become part of a product or be used in a process.
Businesses with unusual water use should understand how their wastewater charges are calculated.
Surface Water Drainage
Some businesses may also pay charges related to rainwater entering the drainage system.
This is often known as surface water drainage.
The way these charges work varies according to location and provider.
Therefore, check your bill to see whether drainage charges are included.
Trade Effluent
Some businesses discharge wastewater that is different from normal domestic sewage.
This can be known as trade effluent.
It can apply to certain industrial and commercial processes.
Additional rules, permissions and charges may apply.
Therefore, businesses producing trade effluent should make sure they understand their responsibilities.
Moving Into Business Premises
Water should be included in your moving checklist.
When taking over premises, find the water meter if there is one.
Then record the reading.
It can also be useful to take a photograph.
This gives you a record of the meter reading when you became responsible for the premises.
You should then contact the appropriate water retailer or provider.
Leaving Business Premises
Do the same when leaving.
Take a final meter reading and keep a record of it.
Then tell your retailer or provider that you are leaving.
This can help prevent disputes about water used after you have moved out.
Comparing Business Water Services
Whether you can compare retailers depends on where your premises are located.
Businesses in England and Scotland generally have much greater freedom to choose their retailer than businesses in Wales or Northern Ireland.
Where comparison is available, do not look only at price.
You may also want to consider:
- Customer service
- Billing arrangements
- Payment options
- Account management
- Meter reading services
- Water efficiency support
- Contract terms
A retailer offering the lowest headline price may not always provide the best overall service for your business.
Businesses with Several Sites
Water can become more complicated if your business operates from several locations.
This is especially true if the sites are spread across different parts of the UK.
For example, a company might have premises in both Scotland and England.
The retail markets are separate.
Alternatively, a business could operate sites in England and Wales, where different eligibility rules may apply.
Therefore, multi-site businesses should check the arrangements for each location.
Monitoring Water Use
Regular monitoring makes it easier to spot changes.
For example, you could record the meter reading:
Weekly
or
Monthly.
Over time, this creates a picture of normal water consumption.
You may then notice unusual changes much sooner.
For example, suppose your business normally uses:
20 m³ per week.
Then usage suddenly increases to:
35 m³ per week.
That gives you a reason to investigate.
Perhaps business activity increased.
However, there could also be a leak or another problem.
Understanding Your Normal Water Use
Water use can also change throughout the year.
For example, a hotel may use more water during busy periods.
A seasonal business may use very little during certain months.
Therefore, compare similar periods where possible.
Understanding these patterns makes unusual consumption easier to identify.
Choosing the Right Business Water Service
Every business is different.
A small office may use relatively little water.
In contrast, a hotel, restaurant, manufacturer or leisure centre may use large amounts every day.
Start by asking:
How much water do we use?
Do we take regular meter readings?
Are our bills based on actual readings?
Do we understand all the charges?
Could we have any leaks?
Could we reduce unnecessary water use?
Can we choose our retailer where our premises are located?
Once you understand your current position, it becomes much easier to identify possible savings.
The Bottom Line
Business water can be easy to overlook.
However, it can represent a significant cost for some organisations.
Start with the basics.
Understand your bill.
Read your meter.
Monitor your usage.
Check for leaks.
Reduce unnecessary consumption.
Then check the rules that apply where your business is located.
Businesses in England and Scotland generally have competitive retail options, while the arrangements are more restricted in Wales and different again in Northern Ireland.
By understanding both your water use and the market that applies to your business, you can make better-informed decisions and identify opportunities to reduce waste and control costs.