Business Water Explained

Most businesses pay for the water they use and the wastewater they produce. Depending on where the business is based, you may also be able to choose the company that provides your retail water services.

Understanding your bills, meter readings and water use can help you spot waste and keep costs under control.

What Does Business Water Cover?

Business water services can include more than the water coming from your taps.

Your charges may cover:

  • water supplied to the premises
  • wastewater and sewerage
  • drainage
  • meter charges
  • other services linked to your account

The exact charges depend on your premises, water use and the services provided.

Who Supplies Business Water?

The company that sends your bill and manages your account is your water retailer.

It may deal with meter readings, billing, payments and customer service.

Behind the retailer is a wholesaler, which looks after the water and wastewater network in its area.

For most businesses, the retailer is the main point of contact for everyday account matters.

Can You Choose Your Retailer?

The rules differ across the UK.

In England, eligible non-household customers can choose their water retailer. This means many businesses can compare retailers and switch if another service better meets their needs.

The arrangements are different in Scotland, Wales and Northern Ireland, so check the rules that apply where your premises are located.

What Is a Water Meter?

Most businesses are charged using a water meter.

The meter records the amount of water passing into the premises, usually in cubic metres (m³).

One cubic metre is:

1,000 litres of water

Regular readings can help you check bills and understand how much water the business actually uses.

Check Your Meter Readings

Do not rely on estimated readings for long periods if you can safely read the meter yourself.

Compare the reading on the bill with the meter and keep your own record. This makes it easier to spot an unexpected rise in use.

If your water use suddenly increases without an obvious reason, investigate it.

What Is Wastewater?

Water that leaves the premises through sinks, toilets and other drains normally enters the sewer system as wastewater.

Businesses can therefore pay both for the clean water supplied and for wastewater services.

The way wastewater charges are calculated can vary, so check your bill if you are unsure what you are paying for.

Surface Water Drainage

Some businesses also pay for surface water drainage.

This covers rainwater that drains from roofs, yards, car parks and other areas into the public sewer system.

Charges can depend on factors such as the size or type of premises.

If rainwater from your site does not enter the public sewer, it may be worth checking whether the drainage charge is correct.

Trade Effluent

Some businesses discharge wastewater that is different from normal domestic sewage.

This is known as trade effluent.

It can apply to certain industrial, manufacturing, food, chemical and other commercial activities.

Businesses producing trade effluent may need permission before discharging it into the public sewer and can face separate charges.

If you think this applies to your business, speak to the relevant water company before making a discharge.

Find Out How Much You Use

Start with your bills and meter readings.

Compare water use over several months and, where possible, with the same period in previous years.

Also consider changes in staff numbers, customers, production or opening hours. Higher use is not necessarily waste if the business has become busier.

The useful question is:

Are we using more water than the business activity explains?

Look for Leaks

A leak can waste water without being obvious.

If you have access to the meter, take a reading when the premises are not using water. Then check it again later.

If the reading has increased, something may still be using water.

However, first make sure equipment such as toilets, heating systems, water treatment or automatic processes is not operating normally during the test.

Check Toilets and Taps

Not every leak is underground.

Dripping taps, leaking pipes and toilets that continually run can waste water throughout the day.

These problems are often easier and cheaper to fix than a major underground leak, so include them in routine checks.

Know Who Is Responsible

Responsibility for leaks can depend on where the problem is located.

The water company is generally responsible for its network, while the business or property owner may be responsible for pipework within the property boundary.

Lease arrangements can make this less straightforward.

If you rent your premises, check the lease and speak to the landlord if you are unsure who should arrange a repair.

Reduce Water Waste

Once leaks have been dealt with, look at how water is normally used.

Simple improvements may include:

  • repairing dripping taps and faulty toilets
  • using suitable water-saving taps or controls
  • avoiding unnecessary running water
  • using efficient cleaning methods
  • checking water-using equipment
  • training staff where their actions affect water use

For businesses that use large amounts of water in production, even small improvements to a repeated process can add up.

Do Not Reduce Water Blindly

Using less water is not always the right goal.

Some processes need a certain amount of water for hygiene, safety, cooling or production.

So, focus on unnecessary use and waste, rather than simply trying to reduce every litre.

Any change must still meet the needs of the business and relevant safety or hygiene requirements.

Check More Than the Price

If your business can choose its water retailer, price is one factor, but it is not the only one.

You may also want to consider billing, customer service, account management, meter-reading arrangements and support for businesses with several sites.

For a business with low water use, a small price difference may matter less than reliable billing and service.

Businesses With Several Sites

Managing water can become more difficult when a business has several premises.

Check whether bills clearly identify each site and compare water use between similar locations.

A site using much more water than the others may deserve investigation.

However, make sure the comparison is fair. A warehouse, office and restaurant will naturally use water in very different ways.

Moving Premises

When moving into or out of business premises, record the meter reading as close to the handover date as possible.

Keep a copy, ideally with a photograph.

Then tell the relevant retailer about the change and provide the reading.

This helps reduce the risk of being charged for water used before you arrived or after you left.

Check Your Bills

Water bills should be checked rather than simply paid automatically.

Look at:

  • the business and premises details
  • meter readings
  • water use
  • billing period
  • wastewater charges
  • drainage charges
  • any other fees

Compare each bill with previous ones and investigate changes that do not make sense.

Key Points

  • Business water charges can include water, wastewater and drainage.
  • Meter readings help you understand use and check bills.
  • An unexplained rise in use could indicate a leak or other waste.
  • Some businesses may also have trade effluent charges.
  • Eligible businesses may be able to choose their water retailer.
  • Check who is responsible before arranging work on a leak.
  • Focus on unnecessary water use without affecting safety or hygiene.

Important Information

Energility provides general information to help you understand energy, household and business costs, services and ways to save money. It is not financial, legal, tax, technical or professional advice.

Prices, tariffs, grants, government schemes, regulations and other information can change. Costs, savings and calculator results are estimates and your actual results may be different.

Before making an important financial decision, signing a contract or carrying out significant work, check the latest information and consider getting advice from a suitably qualified professional where needed.

Energility may receive a commission or other benefit from some links or services. Where this applies, we aim to make it clear. This does not increase the price you pay unless stated otherwise.

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