Managing your business water bills effectively is crucial for controlling costs and identifying opportunities for savings. With water bills rising and water charges increasing annually, understanding how your bill is calculated can help reduce unnecessary expenses.

Wholesale rates increase every April, and over the next five years, they are expected to rise by an average of 36%. Your water bill may seem fairly straightforward, however, common billing errors often stem from more complex areas that you may overlook – such as surface water drainage and return-to-sewer charges. Our guide will help you navigate your water bills while identifying ways to reduce your costs.

What is included in my water bill?

A water invoice in England is made up of two main elements: wholesale charges and retail charges. These are often combined, making it difficult to determine exactly how much extra you are paying for your water each month.

1. Wholesale charges – Set annually and remain consistent regardless of your water supplier.

2. Retail charges – Variable costs that depend on the provider. To keep these charges low, businesses should tender their water supply to secure the best rate.

Water usage charges

Your water pricing depends on whether your business has a metered or unmetered supply:

• Metered – The amount of water used is measured via a meter, with charges based on actual consumption. Your bill will show a meter serial number if there is one in place.
• Unmetered – No meter is in place, but usage is estimated based on property size or rateable value, depending on the wholesale area.

Wastewater charges

Wastewater charges are typically based on a percentage of your clean water usage. Most wholesalers assume 95% of water used goes to the sewer, though some charge 100%. If your business uses water in a way that reduces this percentage, known as ‘return to sewer’, you may be eligible for cost reductions.

Surface water drainage charges

This charge covers the costs of collecting and treating rainwater that falls on your property and goes into the public sewer. Some businesses may be overpaying for additional water charges if they have permeable surfaces or soakaways. Checking your bill can help identify potential savings.

Fixed service charges

Regardless of metering status, businesses pay fixed charges for infrastructure maintenance. These cover the cost of delivering clean water and removing wastewater from your property.

Meter readings and estimated usage

To avoid estimated billing errors, businesses should provide regular meter readings. Many billing errors arise from incorrect estimations, leading to water bill increases. Your supplier is required to take at least two actual readings per year.

How are water bills calculated?

Several factors influence your average water bill price, including:

• Meter readings – Actual consumption vs. estimated usage.
• Water pricing structures – Fixed vs. variable charges.
• Business size and consumption habits – Large businesses with high water usage may benefit from water audits to optimise costs.

What Is a SPID?

A SPID (Supply Point Identification Number) is similar to an MPAN or MPRN found on your energy bills. Your property must have a SPID to ensure you are billed correctly for your water and waste usage.

In Scotland, SPIDs start with a 1 or 2, while in England, they start with a 3. This information can be found on your water bill.

If you are unsure of your SPID, you can ask your supplier for this information by providing your meter serial number (if you have a meter) and your full address.

Understanding your billing period

Most water suppliers bill metered water supplies monthly. These bills are usually generated using estimated readings, which are based on actual readings provided by the customer or taken in line with water market legislation twice per year.

If you have an unmetered supply with a small annual total cost, your water supplier may bill this annually to help reduce costs and minimise the number of bills generated.

It’s important to check the billing period to ensure accuracy. For example, if you know your business doesn’t use water during certain times, such as school holidays, you should only be charged for fixed charges and surface water drainage.

Common reasons for a water bill increase

If you notice an increase in your water billing there can be a few reasons for this:

• Increased wholesale rates.
• Contract has ended and you are paying a higher retail uplift for being out of contract.
• Increased water consumption, due to seasonal demand or business growth.
• Undetected water leaks – Monitoring usage can help identify sudden spikes in consumption.

How to reduce water costs

1. Bill validation and error detection

Errors in water bill validation can lead to overpayments. Our service identifies and resolves discrepancies, ensuring accurate charges.

2. Monitor your water consumption

• Submit regular meter readings to avoid estimated billing.
• Use an Automatic Meter Reader (AMR) to track consumption and detect potential leaks.

3. Water audits for cost reduction

A water efficiency audit can highlight areas where your business can save on water charges. Our process includes:

• Billing and tariff analysis – Reviewing your invoices for errors.
• Water usage survey – Assessing consumption patterns.
• Comprehensive reporting – Identifying actionable savings strategies.

By proactively managing your commercial water bill, monitoring meter readings, and addressing billing errors, businesses can ensure they are not paying for unnecessary additional water charges.

We simplify water management. Our services ensure accurate billing, help you implement data-driven strategies and identify how you can reduce consumption and costs. It’s time to discover how we can help optimise your water management process.