UK Business Water Bills Explained: How is it Calculated?

Many businesses in the UK are overpaying the water bill due to the complexities of commercial water rates and lack of awareness. But cost-conscious business owners must understand the bill and know the available deals. We have clarified the invoice in this business water bills explained guide. Reading the article will help you decide wisely and save money on the water bill.

What Information is Included in the Business Water Bill in the UK?

The information mentioned in the water bill in the UK can be different based on many factors. But the following details are typically included in the water bill for business:

• The water supplier’s name and contact details
• Your business account address
• Your supply point identification number (SPID)
• The last date of the meter reading
• The billing period
• Value Added Tax (VAT)
• Information on how to pay your bill
• Previous meter readings and water consumption
• Contact information for customer service
• Tariff information: the specific water rate and charges
• A record of your past meter readings

Water Bill Charges Types in the UK

Different types of charges for business water bills are noticed in the UK. These are the four main types of water bill charges you should understand.

Metered Charge

This billing system measures the charge in cubic meters (m3). The fee is set based on the amount of water a business uses. It is a per-unit billing system that encourages users to save water to prevent overbilling. Metered charges are fairer than other business water billing methods because you only pay for the precise water use.

Unmetered Charge

The charge is fixed here without considering the actual use of water. The fee is calculated considering the property’s or business premises’ rental value. As the method does not reflect actual water usage, it is often believed to be a less fair tariff. However, unmetered charges can be convenient for businesses where a consistent water supply is required.

Sewerage Charge

It is another billing model where the actual commercial water usage is counted. However, the calculation depends on the amount of wastewater. The supplier charges on the assumption that 95% of used water will return to them through sewers. This charge covers the cost of sewage treatment network maintenance that ensures the wastewater is treated in an eco-friendly way.

Additional Charge

The water supplier can also add specific additional charges. They may include the meter maintenance charges, connection fees, trade effluent charges, etc. These charges can vary depending on the policies of water suppliers.

How is the Water Bill for Business Calculated?

The calculation of water bills generally combines fixed charges, variable charges and tiered pricing. The explanation of how water bills work is below:

Fixed Charge

It is a specified fee a user must pay to the water supplier. The price does not rely on commercial water usage. Instead, it covers the cost of water infrastructure maintenance. For instance, a water supplier charges £20 per month as the maintenance cost.

Variable Usage Charge

The charge is counted in accordance with the actual water consumption. It is measured in units of gallons or cubic meters. Let’s say the variable usage charge is £0.005 per gallon. If you use 5000 gallons of water monthly, the charge will be £25.

Tiered Pricing Charge

Some water suppliers in the UK use tiered pricing for business water bills. The cost rises when you use water more than a specific limit. For example, the regular usage charge is £0.005 per gallon for up to 5000 gallons. After this limit, the charge will be £0.008 per gallon.

Here is a sample calculation of a business water bill:

Total Water Bill = Fixed Charge + Variable Usage Charge + Tiered Pricing Charge.

• Fixed charge: £20 per month.
• Variable usage charge: £25 in the last month for 5000 gallons, costing £0.005 per gallon.
• Tiered pricing charge: £16 in the previous month for an additional 2000 gallons, costing £0.008 per gallon.

So, the total water bill is £20 X £25 X £16 = £61.

How Do We Help You Find the Best Business Water Supplier in the UK?

With years of experience, London Gas and Power helps businesses find the best water rates and deals. We ensure the best water price according to your business type and requirements. If you are a business owner who wants to focus on business and dislikes overpaying for water, we are the best consultancy firm for you.

We go through an in-depth water audit, conduct thorough research and find the most cost-effective water solution for you. The entire process is complex and time-consuming. However, our industry experts will take all the hassle and maximise your savings on your business water bill.

Can I Change the Water Supplier in the UK?

You can undoubtedly change your existing water supplier. Switching is even sometimes beneficial for businesses. But you should change the supplier after carefully comparing the current business water rates in the UK.

Switching the water supplier can help your business lower the water bill, discover a suitable water and wastewater service and get a better value for money. Our detailed consultancy and strong relationship with water suppliers will simplify the comparison process and assist you in making thoughtful decisions about changing water suppliers.

Frequently Asked Questions

Are business water rates cheaper than domestic rates in the UK?

Yes, the cost of business water is generally cheaper than the domestic rates. But, the rate varies depending on regions and suppliers.

Do I have to pay to compare the available water deals?

Comparing the available offers from business water suppliers is free. We deal with the top suppliers to ensure the highest service quality.

What about the long-term support?

We offer lifetime support and contract management. The approach also includes reminding clients about contract renewal and informing them of the latest offers from suppliers.

How often are business water bills typically issued in the UK?

UK water suppliers usually send the bill annually or every six months.