Commercial water rates to increase in April 2022 – how this affects your business

Commercial water rates only change once a year, unlike other utilities. Business water bills are made up of two parts, wholesale charges and retail charges, both of which will change this April.

Here’s what to expect with the commercial water rates increasing in April 2022 and what you as a business can do to combat the increase.

Wholesale water charges

British water infrastructure is made up of 19 separate regions where different companies operate the potable water and sewerage networks.

Most of your water bill goes towards paying your local water company for maintaining the supply of water services to your properties and ensuring it’s kept up to standard.

The regulator determines exactly how much each wholesale company can charge, and from 1 April 2022, the average wholesale water rates will increase by 1.7%.

This small inflationary increase hides a wide regional variety, from a 6% reduction to a 10% increase. These fluctuate region to region.

Retail water charges

Retail water rates are fees the business water suppliers charge for providing customer services, billing, and regular meter readings. Most businesses in England pay default retail water rates on a deemed contract with a business water supplier.

In April 2022, the regulator Ofwat is allowing business water suppliers a one-off increase in default rates. Ofwat has intervened to protect business water suppliers from increased levels of bad debt in the market caused by the Coronavirus pandemic.

What can I do about increasing water rates?

To combat these increases, there are a couple of things you can do. One is to reduce your water consumption as a business, and the other is to compare business water rates and ensure you’re paying a competitive rate.

Reduce your consumption

Reducing the amount of water you use can help lower the rates you pay on your business water. Here are a few things to implement to help you reduce your business’s overall water consumption:

• Use a tap aerator
• Implement a rainwater harvesting system
• Check for small leaks

Compare business water rates

The English water market has been deregulated for five years, and competition amongst water suppliers is increasing. Businesses can now make significant savings on water rates by switching away from their default contract onto a fixed contract with another water supplier.

Get a tailored business water comparison report for your business today to see how much you could save by switching with AquaSwitch.

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