The Benefits of Changing Water Suppliers for Businesses

Getting the most out of your water should be paramount to all businesses. Whether irrigating land or providing showering or cleaning facilities, it’s only becoming more expensive, meaning paying closer attention to your bills is more important than ever. But who are you paying, and could you get a better deal elsewhere? Changing your business water supplier is now perfectly possible and could convey several benefits.

Understanding Water Deregulation in the UK

The UK water market was deregulated in 2008 in Scotland and in 2017 in England (Wales and Northern Ireland opted to remain mostly regulated; in Wales, deregulation only applies to large commercial businesses that use in excess of 50 million litres of water per annum), with the aim of increasing standards within the industry while driving innovation in an era during which the effects of climate change are starting to become evident. 

This change primarily impacts business customers. You now have the freedom to get your water supply from any of the UK’s big regional companies, and each offers different services, some of which may or may not be better tailored for how you use water. It also allows you to negotiate over price and potentially find a reduction to your water bill. 

Why Switch Water Suppliers?

You should consider several reasons if you’re looking at switching your business water suppliers.

Cost Savings

With providers offering different tariffs and regional differences in pricing, switching water suppliers can lead to savings. The cheapest standard tariff is Northumbrian at £1.4585 per cubic metre, while Wessex Water at £2.6609 is the cheapest. The explanation given for higher bills by Wessex Water was, “Bills in the region are slightly higher than other parts of the country because there are more pipes per customer to maintain, and the cost of moving water across our region is expensive”. Aquaswitch has a full guide to business water pricing on their website. 

Improved Customer Service

You may be happy with your water supplier's service, especially if you’ve had issues with incorrect billing or leaks that were reported but not dealt with. Water companies have had to improve their customer service, and some now have tailored and personalised solutions according to your specific needs. 

Consolidated Services

You may have business sites spread nationwide, and various companies manage the water supply. Deregulation allows you to bring your entire water supply under by picking one supplier across multiple sites, streamlining your processes for dealing with any issues relating to your supply and its billing. 

Sustainability and Environmental Benefits

Switching water suppliers in the UK can offer significant environmental benefits, particularly regarding access to greener water solutions. Many suppliers are now focusing on sustainable practices, such as using renewable energy sources and implementing water-saving initiatives. Some suppliers are committed to reducing their carbon footprint by using renewable energy sources.

Suppliers are also investing in technologies to reduce water wastage and improve efficiency. This includes fixing leaks, installing water-efficient appliances, and promoting water conservation among consumers. Many also have programmes to detect and repair leaks promptly, which helps conserve water and reduce costs. Some offer water efficiency audits to help businesses and households identify areas where they can save water. In contrast, others promote rainwater harvesting systems, which collect and store rainwater for non-potable uses, such as irrigation and toilet flushing.

Some water companies, such as Anglian Water and Severn Trent Water, have pledged to achieve net-zero carbon emissions by 2030. The UK water industry has also set ambitious targets for net-zero operational emissions, which involve investing in renewable energy projects and adopting nature-based solutions.

Flexibility and Competitive Pricing

When switching your business water supplier in the UK, you'll find various contract options and flexible payment terms to suit your needs, though broadly, they're divided into fixed-term contracts and deemed contracts. Fixed-term contracts lock in water rates for a specific period, providing price stability and protection against market fluctuations. If no fixed-term contract is in place, you'll be on a deemed contract with default rates that can change annually.

Flexible payment terms have become increasingly commonplace in recent years. Some suppliers offer consolidated billing, combining water and wastewater charges into a single invoice for easier management. In contrast, others may provide various payment methods, including monthly, quarterly, or annual billing, to accommodate your cash flow needs. Many now offer online account management tools, allowing you to monitor usage, manage payments, and access water efficiency advice.

Factors to Consider When Switching

Whether switching your business water supplier has any benefits depends on the specific circumstances of your business, but here are some factors you may wish to consider.

Pricing Structures

There’s a broader array of pricing structures than ever regarding business water. Still, not all companies offer the same tariffs, and you’ll need to make sure that you’re comparing like with like when comparing what different companies are offering. Larger businesses, for example, may be eligible for a hefty user tariff, making their water cheaper. Remember that you’ll need to deal with both water and sewage. Some suppliers will offer tailored packages for both. 

Supplier Reputation

It’s not unreasonable to suggest that water companies aren’t always especially popular these days, but that doesn’t mean that you shouldn’t be paying a lot of attention to what people say about them. Again, you’ll be wanting to compare like with like. Be aware that selection bias is always in play when reading customer reviews. But the proof of a water company is what they do when something goes wrong, so do your research before agreeing to anything!

Contract Terms and Conditions

When you agree to a new agreement with a business water supply, you’re entering into a legally binding contract, and the devil can often be in the details when it comes to this sort of thing.

Billing matters. When does your supplier issue bills? Can they do so in advance? Be aware of standing charges. These are fixed daily fees charged regardless of how much water your business uses. Understand their policy on leakage. Who's liable for water consumed through leakage? And keep an eye out for cancellations terms and penalties. Can you cancel your contract anytime, or do you have to wait until you've paid any outstanding bills?

Sustainability Efforts

Like many other businesses, water suppliers know the importance of presenting a green image to the world. Water companies are involved in a lot of environmental initiatives. Still, you should also be wary of ‘greenwashing’, the process by which less scrupulous businesses can make themselves appear more environmentally responsible while being nothing of the sort.

Deregulation of the water industry in the UK has changed how the companies concerned do business, offering specific opportunities for businesses that are paying attention. Whether the possibility of lower bills, the likelihood of better customer service or simply streamlining and modernising your billing is the end game for you, you will find that there are companies with whom you can negotiate. By starting to research now, you’re already on the first step to changing how your business manages its water supply.