Forecast 2025–2030: Will Business Water Bills Continue to Rise?

In recent years, UK companies have become increasingly concerned about the rising cost of business water bills. With inflationary pressures, climate change, and infrastructure challenges, it is natural to wonder whether this trend will continue. This article explores key factors affecting water pricing and provides a data-backed forecast for the 2025–2030 period.

Understanding the Components of Business Water Bills

Business water bills consist of several elements:

• Fixed charges: Costs for access to the water supply network
• Volumetric charges: Based on actual consumption
• Sewerage and drainage fees: For returning used or rainwater to the network
• Retailer margin: Covers customer service, billing, and support

Understanding these components helps businesses identify areas for potential savings and track changes in future bills. Companies that engage in regular water bill audits can often identify overbilling or incorrect meter readings—two of the most common causes of inflated water costs.

Historical Trends: Business Water Bills 2017–2024

Since the UK water market opened to competition in 2017, average business water bills have increased by approximately 12–15%, according to data from Ofwat. Key drivers include:

• Rising wholesale costs due to drought mitigation
• Investment in ageing infrastructure
• Increased regulation and compliance reporting

Notably, volumetric charges have fluctuated significantly with seasonal consumption and weather patterns. This trend is expected to continue through 2030.

A review of annual inflation-adjusted prices shows:

• 2017: £2.10 per m³ (average SME)
• 2020: £2.25 per m³
• 2024: £2.39 per m³

Will Business Water Bills Rise Between 2025 and 2030?

Climate Change and Water Scarcity

Extreme weather events—droughts and floods—have become more frequent. Water companies are investing heavily in climate resilience, including:

• New reservoirs and desalination facilities
• Upgrades to treatment plants
• Enhanced leak detection systems

These projects require capital, much of which is recovered through increased business water tariffs. Moreover, climate adaptation strategies often require regulatory approval and long-term infrastructure upgrades, both of which are cost-intensive.

Regulatory Pressure and Green Transition

Environmental mandates require suppliers to reduce carbon emissions and improve sustainability. This includes treating wastewater more efficiently and sourcing energy from renewables. While this shift is necessary, the cost of implementation may cause upward pressure on your business water bill.

The PR24 framework from Ofwat is expected to include:

• Mandatory carbon reporting by suppliers
• Targets for water abstraction reduction
• Expanded digital access for customers

All these changes will improve service transparency and quality, but they may also increase costs in the short term.

Population Growth and Urbanisation

The UK population is expected to exceed 70 million by 2030. More people mean more homes and businesses demanding water. Urban areas, in particular, face higher infrastructure strain, which leads to rising costs.

Increased demand places pressure on water sources, pumping stations, and treatment plants. Businesses in growing regions may see greater bill increases than rural or lower-growth areas.

Regional Differences in Business Water Pricing

Business water bills vary significantly across the UK. Wholesale costs are influenced by:

• Geography and rainfall levels
• Groundwater vs. surface water usage
• Local infrastructure age and efficiency

Region	Avg. SME Price (2024)	Notes
North West	£2.25/m³	Lower costs due to abundant supply
South East	£2.48/m³	High demand, older infrastructure
Midlands	£2.35/m³	Moderate variation across urban centres
Scotland	£2.20/m³	Regulated separately; flat tariffs common
Wales	£2.32/m³	Coastal sourcing and seasonal surcharges

Strategies to Mitigate Rising Business Water Costs

Here are proven ways to control your water expenditure:

1. Benchmark Consumption: Use online tools or supplier dashboards to understand your water usage profile.
2. Install AMR (Automatic Meter Reading): These meters track real-time consumption and detect anomalies.
3. Audit for Leaks and Inefficiencies: Even small leaks can cost thousands annually.
4. Retrofit Fixtures: Low-flow taps and dual-flush toilets reduce volume without sacrificing functionality.
5. Educate Staff: Awareness leads to conservation.
6. Switch Business Water Supplier: A competitive supplier can offer better service, pricing, and digital tools.
7. Consider Rainwater Harvesting: Especially useful in industrial or agricultural settings.

Switch Business Water Supplier and Save

One of the most effective ways to manage business water bills is to regularly review and switch your water supplier. Through platforms like Switch-Us.co.uk, companies can compare multiple quotes, view service ratings, and change contracts with minimal hassle.

Switching not only helps lower costs but may also offer access to better digital tools, green options, and tailored customer service. Many businesses who switch business water suppliers report savings between 8% and 18% in the first 12 months, depending on their previous plan.

Supplier Comparison: Top Business Water Providers in 2024

Supplier	Region Focus	Strengths	Green Options
Everflow	National	Low-cost tariffs, strong SME focus	Optional
Business Stream	Scotland, UK-wide	Large customer base, compliance tools	Yes
Castle Water	National	Multi-site billing, sustainability	Yes
Wave Utilities	England & Wales	Digital reporting, leak alerts	Optional
Clear Business	North & Midlands	Bundled energy/water plans	Optional

Visit each provider’s website to check tariffs and terms directly:

• Everflow Water
• Business Stream
• Castle Water
• Wave Utilities
• Clear Business

Forecast Models: Business Water Bills Through 2030

Three pricing scenarios are likely:

Conservative Scenario:

• 2% annual increase in fixed charges
• Volumetric prices remain steady with improved efficiency

Moderate Scenario:

• 3–4% yearly increase across all charges
• Moderate investment in green infrastructure
• Higher billing accuracy with AMR

Aggressive Scenario:

• 6–8% rise in total bill annually
• Extensive infrastructure upgrades and ESG commitments
• Carbon pricing passes through to water services

Year	Conservative	Moderate	Aggressive
2025	£2.45/m³	£2.50/m³	£2.60/m³
2026	£2.50/m³	£2.58/m³	£2.80/m³
2027	£2.55/m³	£2.69/m³	£3.00/m³
2028	£2.60/m³	£2.80/m³	£3.20/m³
2029	£2.65/m³	£2.91/m³	£3.40/m³
2030	£2.70/m³	£3.03/m³	£3.60/m³

Industry Spotlights: Sector-Specific Water Risks

Manufacturing

• High-volume usage during cleaning and cooling
• Benefit most from AMR and tiered pricing

Hospitality

• High per-capita usage (guests, kitchens, laundry)
• Leak detection is critical

Agriculture

• Vulnerable to rainfall shortages
• May benefit from greywater and rainwater systems

Education & Healthcare

• Essential services with strict hygiene needs
• Potential for savings through smart retrofits

Offices and Commercial Premises

• Often overlooked water waste (e.g. toilets, kitchens)
• Benefit from automated metering and staff training

Government and Regulatory Developments

Key updates to monitor include:

• Ofwat PR24 regulatory period
• Introduction of carbon tracking in utility reporting
• Expansion of green procurement standards in the public sector

Resources:

• Ofwat’s Market Review
• MOSL’s Market Insights
• CCWater Reports

Technology Adoption Case Studies: Leading by Example

Case Study 1: National Retail Chain Reduces Water Spend by 22%

A high-street retail brand operating 180 locations across the UK identified water as a controllable cost in its sustainability strategy. Partnering with Wave Utilities, the company deployed automatic meter readers across 70% of its sites and began tracking per-store usage. Within 12 months:

• Leaks were identified in 14 stores
• Annual savings reached £148,000
• Stores with water-saving fixtures saw 19% lower consumption

The rollout paid for itself within 10 months, and the initiative contributed toward the company’s net zero roadmap.

Case Study 2: University Implements Greywater Recovery

An urban university with over 25,000 students sought to reduce its water footprint. The estates team implemented greywater recovery systems in its largest science buildings and student residences. Coupled with dual-flush toilets and behavioural campaigns, results included:

• 35% reduction in freshwater use across two buildings
• 11 million litres saved annually
• Estimated savings: £64,000 per year

The project was funded in part by a public green infrastructure grant.

Case Study 3: Food Manufacturer Trials Smart Irrigation

A Yorkshire-based food processing facility trialled smart irrigation and cleaning controls. By adjusting water flow based on humidity and temperature sensors, the company optimised cooling and cleaning processes. Combined with employee engagement workshops, the pilot project:

• Reduced daily consumption by 18%
• Improved wastewater treatment efficiency
• Reduced sewerage charges by £32,000 in the first year

Tools and Resources to Track Business Water Performance

For businesses serious about controlling future bills, data is essential. Use the following platforms and tools:

• MOSL’s Market Performance Dashboard – compare supplier KPIs
• CCWater’s Complaints Data – identify service risks
• Online calculators – such as Waterwise’s SME audit toolkit
• BESCA (Building Engineering Services Competence Assessment) – for compliance

Retailers offering advanced analytics and tracking dashboards include Castle Water, Business Stream, and Everflow. Many also offer monthly breakdowns, benchmarking tools, and leak alerts via SMS or app notifications.

ROI of Water-Saving Investments

Investing in water efficiency is not only environmentally responsible—it pays off. The ROI for most commercial retrofits ranges between 12 and 24 months.

Investment Type	Avg. Upfront Cost	Annual Savings	ROI Timeframe
Dual-Flush Toilets	£150–£300/unit	£50–£120/unit	1–2 years
AMR Installations	£300–£800/site	£200–£600/site	8–18 months
Leak Detection Service	£500–£2,000/site	£500–£3,000	6–12 months
Greywater Systems	£15,000–£50,000	£5,000–£20,000	2–4 years

Additionally, many businesses qualify for Enhanced Capital Allowances (ECA) or green grants from local councils or DEFRA-backed pilot programs.

Summary: Prepare Today to Protect Tomorrow

Business water bills are likely to continue rising—but the extent depends on infrastructure, climate, and policy. Companies that monitor their usage, educate staff, upgrade systems, and proactively switch business water contracts can avoid the worst increases.

Don’t wait for your next bill to rise. Start managing your water strategy today with the tools, suppliers, and insights that position your business for cost control and resilience.