Water wholesalers publish their rates for 2023/2024: How will you be impacted?

Author: Kirsty Christie

How will I be impacted by 2023/2024 water rates?

All of the largest water wholesalers in England have now published their wholesale rates for 2023/24.  These come into effect on 1 April 2023 and will impact all business customers in England. Household bills are set to rise by 7.5% from 1 April 2023.

Of the top five wholesalers (Thames, Yorkshire Water, Severn Trent, United Utilities and Anglian), the average increase (for volumetric costs per M³) is in line with inflation levels at 10.5%, with Thames Water coming in the highest at 13.7% and Yorkshire Water the lowest at 6.9%.

The increases vary by region and by service i.e., water fixed costs and waste fixed costs may rise at different levels to the volumetric or drainage charges. Business customers should budget for this increase, whether in a contract or not, since water contracts track the wholesale rate. As many retailers calculate the retail charge as a percentage of the wholesale charge, they are also likely to rise in line with inflation.

For an accurate estimate of the increase to your costs you can find out your wholesale region using the postcode finder at: Find your supplier | Water UK then refer to the latest charges scheme published on the wholesaler’s website.

The comparison for all water2business incumbent area customers falls into two areas. Customers in the Bristol and Wessex areas can expect the following rises in their waste and drainage costs from 1 April 2023:

• An increase in the cost per m³ of waste of 7.5%

• An average increase of 17.5% on surface water drainage costs

• An increase of 5.3% on roads drainage costs

Your water may be supplied by Bristol or Wessex Water. Bristol customers will experience the following:

• 21% rise on the cost per m³ of water for all customers

• 0% rise in the fixed water costs/standing fees for all customers.

If you water is supplier by Wessex the rises below are the average rise, however, specific sites may experience higher or lower than this if they are a larger user (over 25mm meter and 100,000m³ annual consumption):

• 0% rise on the cost per m³ of water for all customers

• 33% rise in the fixed water costs/standing fees for all customers.

Wholesale rates in Scotland have not yet been published but we will issue an update when it becomes available.