Is Commercial Water More Expensive than Residential UK?

Is Commercial Water More Expensive than Residential UK

Do commercial water prices differ from residential ones? Simply said, commercial water rates are more expensive than residential in the UK. However, other considerations must be addressed. These are connected to the Ofwat water regulations in the UK.

The type of business you operate, how much water is used there (often monitored by a meter), and the cost of your land are a few of the considerations. Depending on their specific needs, different businesses may require varying rates. To learn more about commercial water rates, you should continue reading this article.

Wholesale water prices

The potable water and sewage networks are run by various businesses in 19 distinct regions that make up the British water infrastructure.

Your local water corporation receives the majority of the money from your water bill to maintain the quality and quantity of water services to your properties.

The average wholesale water prices were increased by 1.7% starting on April 1, 2022, according to the regulator, which sets the exact amount that each wholesale company may charge.

This modest increase in inflation masks a large regional range, ranging from a 6% decrease to a 10% increase. However, it is important to mention that these prices vary from place to place.

Retail water prices

Retail water rates are charges made by commercial water providers for providing customer support, billing, and routine meter readings. Based on a presumed agreement with a business water supplier, the majority of firms in England pay default retail water rates.

The commercial water suppliers are permitted a one-time rise in default rates that started in April 2022 by the regulator Ofwat. Ofwat has stepped in to shield commercial water suppliers from the market’s rising bad debt levels brought on by the coronavirus outbreak.

Where in Great Britain does water cost the most?

The South West has the highest water rates for business, with customers paying 40 percent higher than the national average. The water business in Devon and Cornwall maintains thousands of kilometers of pipelines to serve a small population, which raises typical costs.

Are commercial water rates more expensive than residential rates?

The AquaSwitch study indeed discovered that standard business water rates are, on typical, 8.7% more expensive when compared to an ordinary household and a comparable commercial property.

The standard business water prices are based on the presumption that a company has remained with the default water provider assigned following deregulation in 2017.

Every year, the default water rates rise more than the rate of inflation. By switching to alternate contracted rates provided by alternative business water suppliers, businesses can save up to 20 percent on their business water rates. Check to see if switching now will save money for your company.

It is also worth mentioning that each company operates differently so determining how expensive the rates are can differ. The amount of water used by your business may vary with the weather. In this case, there is a seasonal tariff available, where your water charge varies throughout the year following your various meter readings.

If you are completely aware of the water consumption rates for your company, you could be willing to sign a contract requiring more self-control. A subscription demand tariff applies in this situation. A forecast of your water usage’s peak daily demand must be given to your water company at the start of the calendar year. If you desire a controlled and organized water usage rate, this might be advantageous.

It’s crucial to be extremely clear about your water rates because there can be consequences if you don’t adhere to these restrictions. There is an interruptible tariff available for company owners who would be willing to cut their water usage at specific times in exchange for a lower water bill.


Commercial water prices can be more expensive than residential water in the UK. However, a lot of things might affect the rates depending on how much water is consumed, the size of the business as well as the area.

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