How the business water market works
Since 1 April 2017, around 1.2 million businesses, charities and public sector organisations in England have been able to choose their water and wastewater retailer. There is no minimum usage. Scotland opened its business market earlier, in 2008. In Wales, a site has to use more than 50 megalitres of water a year before it can switch.
- The retailer handles your account: billing, meter reading and customer service.
- The wholesaler, your regional water company, still supplies the water and takes the wastewater away.
Switching changes who bills you. It does not change the pipes, the water or the supply, and there are no works or interruptions.
Why many businesses have never reviewed it
When the market opened, businesses that did nothing simply stayed with the retailer they already had. Water bills are often small next to electricity and gas, so they rarely get the same attention. For multi-site organisations in particular, that can mean several retailers, several billing formats and charges nobody has checked in years.
What a review can change
- Retail charges and service. Wholesale charges make up the largest part of a water bill and are passed through by every retailer, so the difference between retailers comes mainly from their own charges, service levels and billing accuracy.
- One bill for every site. Organisations with several premises can consolidate onto one retailer and one account.
- Getting the bill right. This is often where the real money is, because errors can run unnoticed for years.
Water billing errors worth checking
- Estimated reads. Bills built on estimates drift away from real usage, then catch up with a large adjustment.
- Return to sewer. Sewerage charges usually assume most of the water you use goes back down the drain. If water goes into products, evaporates or is used for irrigation, an allowance may reduce your sewerage charges.
- Surface water drainage. If rainwater from your site does not drain to the public sewer, you may be paying for drainage you do not use.
- Closed or wrong sites. Charges for vacant premises, or meters that no longer belong to your site.
- Trade effluent. Charges based on old volumes or strength readings that no longer reflect how the site operates.
What to do now
Gather the last twelve months of water bills for each site, check the meter serial numbers match the meters on site, and note any contract end dates. If you would like a second pair of eyes, see our water procurement service or upload a bill for a free check.
Common questions
Can every business switch water retailer?
In England, eligible business customers can switch with no minimum usage. In Wales, a site needs to use more than 50 megalitres of water a year. Scotland has had a business water market since 2008.
Will switching interrupt our water supply?
No. Your regional water company still supplies the water and takes the wastewater away. Only the company that bills you and reads your meters changes.
Sources
- CCW: 5 things you need to know about the new water market
- Ofwat: Eligibility guidance for business customers in England and Wales
Contains public sector information licensed under the Open Government Licence v3.0.
Renewing in the next twelve months?
Book a call and we will look at your timing and options against the current market.
Book a callThis page is general information, not advice on your specific circumstances. Contract terms, charges and scheme rules change, so it is worth confirming the detail for your sites before making a decision.