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Are business water rates cheaper than domestic?

On average, residential water rates are 18% less expensive than the corresponding out-of-contract, commercial water supplier tariff.

According to our research, starting in April 2023, the typical residential property pays £529 annually for water rates, while an equivalent commercial property on default rates pays £622 for business water bills.

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How much does water cost in your region?

The British water network is not a unified system; instead, it comprises separate regional water and wastewater networks, each managed by different various water companies and wholesalers.

The pricing for water and wastewater services in each region is determined by the availability of water and the expenses associated with maintaining the local water network.

We analysed the residential metered and switch business water supplier’s rates compared to the default commercial water tariff in each region. Across all regions, a consistent pattern emerged comparing business water suppliers, with residential rates being slightly more affordable than the default business rates.

Where is water most expensive in the UK?

The South West region stands out as the costliest area for water rates, with users paying 40% above the national average.

This is primarily attributed to the extensive maintenance of thousands of miles of pipes by the water company in Devon and Cornwall, where the infrastructure serves a relatively small population, resulting in business water supply and higher average bills.

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The most economical area for water rates is the Thames Basin, where users pay 25% less than the national average.

This region encompasses London and features a full water supply and high population density, which lowers the average cost of maintaining the water network for each user.

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How much does water cost for a small business?

Typically, small business water rates are based on a metered water tariff provided by a business water supplier.

These tariffs encompass a combination of fixed standing charges for water and sewerage services and variable volumetric charges, depending on the volume of both water and sewerage consumed by the business.

Our research reveals that a business occupying a property or business premises of equivalent size and water usage to an average household will incur slightly higher water rates compared to households under the default non-household tariff rates.

Small businesses have the opportunity to save money and realize cost savings by just switching water suppliers from the default tariff to more competitive offerings provided by alternative water suppliers.

To assess potential savings for your business water bill, we encourage you to compare business water prices now!

Are business water rates higher than households?

Indeed, our research has revealed that when comparing the business water contract for an average household to the best business water supplier for an equivalent business property, the default business water rates are, on average, 18% higher.

These default business water rates are based on the assumption that a full business water market has remained with the initial water supplier allocated during the 2017 deregulation. Furthermore, these rates increase annually above the inflation rate.

Businesses have the potential to reduce their business water rates by up to 20% by transitioning to alternative contracted rates provided by different commercial water suppliers.

To determine if your business can achieve savings, switch and compare business water suppliers now.

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Compare business water rates with Business Energy Comparison

Switch business water suppliers today and cut costs on your current business energy rates. Depending on your new water supplier, you may be able to switch up to a year before your energy contract expires. Do you want to compare business water suppliers? Get in touch with our experts today.

Use our business energy comparison tool and start switching business water suppliers! Compare business gas and business electricity rates with our energy experts.