Categories: Geek

How Are Business Water Bills Calculated?

In the UK, all water companies have separate ways of charging non-household customers (businesses) for their water and sewerage services. The charges are based on both the quantity of clean water used and the amount of trade effluent or wastewater produced by the business.

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How Are Business Water Bills Calculated?

Non-domestic businesses which have a water meter installed will pay a standing charge depending on the size of the meter and a set charge per cubic meter of water used. For most small organisations, the charge per unit of water used is the same as for domestic customers.

Businesses that do not have a water meter have their charges calculated in the same way as for domestic customers without a meter.

The standing charge for connection to the mains still applies, but the rest of the bill will be calculated depending on the rateable value of the property and is a fixed charge. This also covers customer service costs and billing costs.

To get the business water rates for your company, follow the link to view the best deals and tariffs.

How Are Wastewater And Sewerage Charges Calculated?

The money charged for sewerage services has to cover the treatment and collection of different types of wastewater including surface water, highways drainage, foul sewage, and trade effluent.

Water companies calculate the charges for trade effluent and foul sewage depending on both the volume produced and the strength of the trade effluent. Water companies around the UK have a range of approaches when calculating how to charge for highways and surface water drainage.

Businesses which can prove that they do not produce any of these types of wastewater may be able to apply for a reduction in their water, wastewater, and sewage bills.

Are There Any Additional Water Charges?

In addition to quarterly or annual water bills, water companies may also charge businesses additional amounts for connection or reconnection of supply.

Who Is Ofwat And How Do They Regulate Water Bills?

Ofwat, the government body which regulates the water industry, limits the prices for smaller customers whether they are industrial or domestic ones.

Larger water users do not have their water bills limited in the same way, but Ofwat’s job is to still ensure that the prices charged are fair, and don’t discriminate against larger water users.

Most businesses have the option of switching water suppliers if there is competition in their area. Water and sewerage charges are adjusted each year. The level of change in the charges will depend on the policies of the water company you are dealing with.

Charges vary between water companies as each provider faces a different set of challenges.

Ofwat checks that even though charges may be different, they are still fair. There is lots of information on the Ofwat website about what has happened to water bills since the industry was privatized, how price limits are set, and how company charges are regulated.