Make the best business water rates comparison: Your guide in 2020-21

The water market in the UK underwent significant changes in recent years, offering businesses the opportunity to choose their water supplier and potentially reduce costs. Since April 2017, businesses in England and Wales have been able to purchase their water supply from any regulated provider in their area, a shift that mirrors similar deregulations in other utility sectors like gas and electricity. With Scotland enjoying deregulation since 2008, businesses across the UK are now more empowered than ever to take control of their water bills.

Here's a detailed overview of the benefits of switching suppliers, the current market conditions, and how businesses can save money on water bills in 2024.

The Benefits of Switching Water Suppliers

1. Lower Bills

The primary advantage of switching suppliers is to secure a better deal on your water bills. As deregulation continues to drive competition, water companies are competing for your business, which can lead to lower prices for both water supply and wastewater treatment.

• Cost Savings: By comparing water tariffs, businesses can switch to the most affordable supplier. For instance, a small business with annual consumption of 200 cubic meters could save hundreds of pounds by switching from one supplier to another.

2. Bill Consolidation

For businesses with multiple sites, deregulation also offers the benefit of consolidating water bills. Before deregulation, a business with multiple locations might have had to manage separate bills from different suppliers. Now, businesses can work with a single supplier, streamlining administration and potentially reducing operational complexity.

• Example: A retail chain with 20 stores across the country could consolidate all their water bills under one supplier agreement, leading to simpler management and possible cost reductions.

3. Enhanced Customer Service and Expert Advice

Many businesses are not only switching for lower prices but also for better customer service. Suppliers often offer tailored services, advising businesses on how to optimize water usage and reduce consumption. This can be especially beneficial for companies with high water usage.

• Expert Consultation: Some suppliers provide businesses with free consultations, helping identify water-saving opportunities, which could further reduce costs.

How to Choose the Right Water Supplier

When selecting a water supplier, businesses need to consider several factors beyond just price:

• Tariff Structures: Water suppliers offer different pricing plans, including fixed and variable rates, which can affect your overall costs. Make sure to compare how the supplier’s tariff structure fits your business's needs.

• Environmental Responsibility: If your business values sustainability, look for a supplier that offers renewable water solutions or supports water conservation programs.

• Customer Service: Good customer service can make a big difference when dealing with billing issues, meter readings, or supply problems. Check online reviews and ask about customer support channels.

Water Prices in 2020: A Price Comparison

Here’s an overview of what small and medium-sized businesses can expect to pay for water in the UK:

Small Businesses (200 cubic meters of consumption per year)

• Thames Water: £492

• Severn Trent: £559

• United Utilities: £594

• Northumbrian Water: £602

• Yorkshire Water: £602

• Anglian Water: £666

• Southern Water: £744

• Wessex Water: £838

• South West Water: £1,125

• Business Stream: £1,165

Medium Businesses (1,500 cubic meters of consumption per year)

• Thames Water: £3,275

• Northumbrian Water: £3,490

• Severn Trent: £3,746

• Anglian Water: £4,102

• United Utilities: £4,175

• Yorkshire Water: £4,200

• Southern Water: £5,147

• Wessex Water: £5,729

• Business Stream: £6,915

• South West Water: £7,951

The price difference between the lowest and highest tariffs can be over 34%, or approximately £4,676 annually for medium-sized businesses. This highlights the potential savings businesses can achieve by comparing prices and switching suppliers.

How Long Does It Take to Switch Water Suppliers?

Switching water suppliers is a straightforward process, but the time it takes can vary. On average, it takes around 28 days for a business to complete a switch. However, if your business has complex needs, such as multiple sites or special water requirements (e.g., for agricultural or industrial use), the process may take longer.

Will the Water Market Become More Regulated in the Future?

The UK’s water market is still in the early stages of deregulation. While the market is expanding and competition is increasing, businesses in certain regions still face limited options. For example, United Utilities is the only supplier in the North West, meaning businesses there cannot currently switch to an alternative provider.

However, if your business is in an area with multiple water suppliers, deregulation can present significant savings opportunities. Use a price comparison tool to see if switching can benefit your business.

Conclusion: Why Your Business Should Switch Water Suppliers in 2024

Switching water suppliers is a simple and effective way for businesses to reduce operational costs and improve overall utility management. Whether you are looking to cut costs, consolidate your bills, or access better customer service, deregulation provides the opportunity to tailor your water services to your specific needs.

With price differentials still significant between suppliers, taking the time to compare and switch can lead to substantial savings. As the market continues to evolve, more businesses will benefit from the increased competition and tailored services available through deregulation.

To ensure you’re getting the best deal for your business, consider using a free comparison tool to explore your options. With the right supplier, you can save money, streamline operations, and even contribute to sustainability goals.