Business water suppliers
Business water suppliers: did you know you can choose yours?
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Most businesses in England and Scotland can choose their water supplier. We check your water charges against today's market, and then a specialist will ring to explain where you stand.
How business water suppliers work
Business water is split into two parts. One company looks after the pipes, while another, which you can choose, looks after your account.
Your regional water company
It supplies the water, takes away the wastewater and maintains the pipes. That stays the same whoever you choose.
Your water retailer
It handles your bills, meter readings and customer service, and this is the part you can switch.
England
Businesses, charities and public bodies have been able to choose their retailer since April 2017.
Scotland
Businesses have been able to choose their retailer since 2008.
Wales
If your water company's area is wholly or mainly in Wales, only sites using at least 50 million litres of water a year can switch, and only for water.
If you're thinking of switching, our guide covers who can switch, how long it takes and the steps involved.
What makes up a business water bill
A business water bill is made up of wholesale charges, set by the regional water company or companies for your area, and your retailer's own charges. The wholesale charges are the same whichever supplier you choose, while the retail part pays for your retailer's billing, meter reading and service. Wholesale charges are set for each charging year, which starts on 1 April.
Water supply
You pay for each cubic metre (1,000 litres) of water you use, plus a fixed charge.
Wastewater
This is a charge for the water you send down the drain. It's usually worked out from the water you use, on the assumption that most of it, usually 90% to 95%, returns to the sewer.
Surface water drainage
This is a charge for rainwater that runs off your site into the public sewer. It's often based on the size of your site. In Scotland it's usually based on rateable value.
Highway drainage
In many areas you also pay a charge towards draining public roads into the sewers.
Trade effluent
If your processes send liquid waste to the sewer, as a brewery does, you need the water company's consent. You then pay for how much you send and how strong it is.
VAT
Most businesses pay no VAT on water or sewerage, but water for industrial use, such as manufacturing, construction, mining or energy, is charged at 20%.
Where business water suppliers differ
Because the wholesale charges are the same whoever you choose, suppliers compete on everything else:
- The retail part of your price, which each supplier sets itself.
- Meter reading: how often your meters are actually read rather than estimated.
- Billing: whether all your sites in England and Scotland can go on one bill.
- Help with your charges: for example, checking your drainage charges, applying for allowances and spotting leaks.
- Contract terms: the length, the notice period and any fee for leaving early.
No supplier can change your region's wholesale charges, how much water you use, your meter size or how your site drains.
Four things worth checking
Estimated readings
If your bills are based on estimates rather than real readings, they can drift a long way from what you actually use.
Surface water drainage
If rainwater from your site doesn't drain into the public sewer, for example because it goes into a soakaway, you may be paying a drainage charge you don't need to.
Water that never reaches the sewer
If less of your water goes down the drain than your water company assumes, because it goes into the product, evaporates or waters plants, you can apply for an allowance on your wastewater charge through your retailer. Food and drink producers, laundries and sites with heated pools are typical examples.
Your retailer's terms
Many businesses have never switched, so they're still on their first retailer's standard terms.
How to compare business water rates and suppliers
To compare business water rates, look at what each supplier adds on top of the wholesale charges, and what it does for you.
- Gather your details: the supply point ID (SPID) for each site, your yearly water use in cubic metres, and your current contract's end date and exit terms. Most of this is on your bill.
- Ask for quotes for water and wastewater for every site, based on the same yearly use. Open Water lists the licensed retailers in England, and the Water Industry Commission for Scotland, which licenses retailers there, lists many of them on its retailer hub.
- Compare the total yearly cost, and ask how your price will follow the wholesale charges set each April.
- Check how often your meters will be read, and how you'll be billed.
- Check the length, the notice period and any exit fee. In England, a microbusiness (for water, one with fewer than 10 employees) gets a seven-day cooling-off period after agreeing a new contract with a water retailer, and can cancel at no cost during it.
- Ask what help comes with it, such as checking drainage charges, allowances for water that doesn't reach the sewer, and leak alerts.
If you're ready to move, our guide covers how to switch business water supplier.
How your free energy check works
It takes about two minutes on your side. We do the rest.
- Step 1
Tell us about your business
Your name, your business name and a phone number are all we need. If you have a recent bill to hand, you can add it, but you don't have to.
- Step 2
We compare your costs
We look at your rates, standing charges and contract terms, and compare them with what the market is charging now.
- Step 3
A specialist calls you
They'll ring at a time that suits you and talk you through what we found. There's no pressure and nothing to sign.
The check is free and you never pay us.
We introduce businesses to Assured Energy, our energy procurement partner, and they pay our fee if you decide to switch. If your current deal is already a good one, they'll tell you, and you'll know where you stand.
Check your business water charges for free
Tell us a little about your business and a specialist will call within two working days to go through your results.
Questions about business water suppliers
Who are the business water suppliers in my area?
In England and Scotland, you can choose any licensed retailer, not just one based near you. Open Water lists the retailers for England, and the Water Industry Commission for Scotland, which licenses retailers there, lists many of them on its retailer hub. Whichever you choose, your regional water company stays the same.
Can my business switch water supplier?
Most businesses in England and Scotland can. If your water company's area is wholly or mainly in Wales, only sites using at least 50 million litres a year can, and only for water.
Will switching water retailer affect my supply?
No. The same regional company still supplies your water and takes away your wastewater, through the same pipes. Only the company that bills you changes.
Why can't I choose the company that supplies the water itself?
Because the pipes and treatment works are run by the regional water company for your area. The part you can choose is the retail side, which covers billing, meter readings and customer service.
Do businesses pay VAT on water?
Usually not, because water and sewerage are zero-rated for most businesses. However, water for industrial use, such as manufacturing, construction, mining or energy, is charged at 20%.
What is surface water drainage?
It's a charge for rainwater that drains from your property into the public sewer. If your site's rainwater goes somewhere else, for example into a soakaway, you may be able to have the charge reduced or removed.
Can I pay less for wastewater if my water doesn't go down the drain?
Yes, if less of it returns to the sewer than your water company assumes, usually 90% to 95%, for example because it goes into your product or evaporates. Your retailer can apply to the water company for an allowance, with evidence such as readings from sub-meters.
Do I need a bill for a free check?
No. Your name, business name and phone number are enough to start with. A recent bill just makes the check more precise.
How are business water rates calculated?
With a meter, you pay for each cubic metre of water you use plus a fixed charge, and wastewater is charged on the share of that water assumed to return to the sewer, usually 90% to 95%. Without a meter, charges are usually based on your property's value. Drainage charges, and trade effluent charges for some processes, are added on top.
Do business water rates go up every April?
They can change every April. Your regional water company, or companies, set new wholesale charges for each charging year, which starts on 1 April. Ask your retailer how your own price will follow them.
Can businesses in Northern Ireland choose their water supplier?
No. NI Water supplies businesses in Northern Ireland, and every non-domestic customer pays for water.
How business water rates are set
Your price has two parts. The regional water company, or companies, for your area set the wholesale charges for supplying water and taking away wastewater, and they're set for each charging year, which starts on 1 April. Your retailer adds its own price on top, for billing, meter reading and service.
- In England, Ofwat regulates the wholesale prices, and retailers set their own. If you don't switch or agree a new deal, Ofwat limits the price your retailer can charge.
- In Scotland, Scottish Water sets the wholesale charges. The Water Industry Commission for Scotland sets maximum prices for the default tariffs that licensed providers must offer.
- Without a meter, you pay a set amount, usually based on the value of your property. In Scotland, that's its rateable value.
What you pay then depends on how much water you use, how much of it returns to the sewer, how your site drains and the size of your supply.
Our guide to business water rates covers VAT, Scotland's charges and costs in more detail.
Business water in Wales and Northern Ireland
If your water company's area is wholly or mainly in Wales, you can choose a retailer only if your site uses at least 50 million litres of water a year, and only for water, not wastewater.
In Northern Ireland, businesses can't choose: NI Water supplies them. All non-domestic customers pay for their water, while household charges remain deferred.
Every business uses energy differently
Your specialist looks at your rates with the way your business runs in mind.
Sources
- CCW, water retailers: who can choose a retailer in England, and the 50 million litre rule in Wales.
- Open Water, English water and wastewater retailers: the list of licensed retailers in England.
- Water Industry Commission for Scotland, Scotland's retail market: choice for all non-household and public sector customers since 1 April 2008, and licensing of retailers.
- Water Industry Commission for Scotland, retailer hub: retailers taking part in Scotland on tap.
- CCW, return to sewer allowances: customer guidance: default return to sewer of 90% to 95%, and applying for an allowance through your retailer with evidence.
- Ofwat, rebates for non-connection: a reduction in sewerage charges if no surface water enters a public sewer.
- CCW, site area based charging: surface water and highway drainage charges.
- Ofwat, business retail market: limits on the price customers pay if they don't switch or renegotiate.
- Open Water, how the retail market works: wholesale prices regulated by Ofwat, retailers setting their own.
- GOV.UK, water and sewerage rates for businesses: metered and unmetered charges.
- mygov.scot, water, sewerage and drainage charges for businesses: rateable value for unmetered charges in Scotland.
- WICS, 2026-27 default directions: default tariffs and their maximum prices.
- Scottish Water charges scheme 2026-27, part 1: property drainage based on rateable value.
- Ofwat, eligibility in the business retail market: the Welsh rule, by water company area and 50 megalitres.
- Ofwat, Customer Protection Code of Practice, section 6.2: a seven calendar day cooling-off period for microbusinesses (fewer than 10 employees).
- NI Water, non-domestic charges: all non-domestic customers charged for water.
- GOV.UK, water and sewerage rates for businesses: choosing a supplier: no choice of supplier in Northern Ireland.
- Dŵr Cymru Welsh Water, trade effluent: consent before discharging, and charges based on volume and strength.
- HMRC, VAT on supplies of water, relevant industrial activity and sewerage services: water and sewerage zero-rated for most businesses, and 20% on water for industrial activities.