As a business owner, a sudden spike in your bills can be a cause for serious concern. After all, your outgoings have a direct impact on your profits, so if you notice your bills jump up suddenly, this can give you a bit of a fright!
In truth, there are many factors that can cause your bills to increase. Here we’ll be discussing them to keep you in the know and help you avoid any nasty surprises the next time you open your water bill!
CPI Index
One common culprit behind sudden rises in water bills is inflation, which remains stubbornly high in the UK.
Many companies, including your water suppliers, will often adjust their rates in line with changes in the Consumer Price Index (CPI) each year, which measures the average price level of goods and services.
So, as the CPI increases, so too can your water bills, reflecting the rising cost of providing water and sewage services.
Keep in mind that this is usually just a few per cent and shouldn’t cause your bills to go up massively, so if this is the case then there’s probably something else to blame.
Water Leaks
The next reason your water bill may have gone up and the most probable cause if the spike was particularly steep is a water leak. And if this is why your bills have shot up, you ought to get this seen to sooner rather than later.
First and foremost, water leaks cost money. As your business will be on a meter where you pay for the amount you use, any leak in your system will lead to an increase in water bills, resulting in unnecessary expenditures and eating into your profit.
Therefore, detecting these leaks and getting them fixed in a timely fashion will significantly reduce costs and protect that all-important bottom line!
Moreover, in an era where sustainability is a top priority for businesses, detecting and repairing water leaks helps conserve this valuable, life-giving resource. So reducing water wastage aligns with your environmental responsibility as a business owner and can enhance your company’s sustainability efforts.
Lastly, as well as costing you a small fortune and harming your sustainability efforts, water leaks can also damage building structures, equipment and inventory.
In severe cases, this can result in costly repairs and operational disruptions, underlining the importance of spotting leaks early to avoid these expensive consequences!
Increased Usage
The most obvious reason for your water bill going up is you’re using more water! While this may seem obvious, for business owners, particularly those with large companies, it can be difficult to keep tabs on how much you’re using.
There are many reasons why businesses may experience an increase in their water usage. These include factors such as the recent expansion of operations, scaling up production activities, the introduction of new manufacturing processes requiring water or implementing water-intensive cooling systems for your machinery and equipment.
Additionally, changes in business activities, such as increased cleaning or irrigation needs, may also mean you’re using more water.
So if your business has recently undergone any of these changes then this could be the cause of that sudden spike in your water bills.
Metering Errors
With the introduction of state-of-the-art smart meters, this may be less likely. However, in some cases, a spike in your bills may be down to dodgy meter readings.
Metering inaccuracies or faults can result in incorrect readings, leading to the miscalculation of water consumption and inflated bills.
Regular meter maintenance and timely reporting of suspected issues to water authorities will help to rectify metering errors and ensure accurate billing.
Contract Changes
When you signed up for your water contract, did you check the fine print? The reason we ask is that changes to water supply contracts or tariff structures can catch consumers off guard, leading to unexpected increases in bills.
This is why it’s essential to review contract terms and conditions periodically to ensure transparency and understanding of billing arrangements as different price structures may kick in after a set period of time.
Additionally, the terms in your contract may state that fluctuations in weather patterns, such as prolonged periods of drought or heavy rainfall, can influence billing rates. Likewise, regulatory requirements aimed at environmental protection may require investment in water treatment which can be reflected in billing adjustments, should you contract allow as much.
Consulting with water providers about available options and negotiating suitable terms may help alleviate financial strain.
How To Reduce Wastage And Save Money
As a business owner, you’ll want to reduce your outgoings as much as possible. After all, boosting your bottom line is what it’s all about, so anything that allows you to do that should be welcomed with open arms!
There are many ways you can reduce your water bills. The first and most obvious is to check there are no leaks in your pipework. Leaks will put a literal drain on your business’s finances, so be sure to give your piping a check over every once in a while.
You should also keep an eye on your bills. If there are any leaks or metering issues then these will usually show as a sudden spike in your usage, so regularly monitoring your bills can help spot these early.
Also check your contract to see if you’re due for any increases or alterations to your tariff as this often catches business owners out, while the CPI index should also be remembered as this will often affect billing, at least minimally.
Comparing Water Suppliers
If you notice your bills shoot up this can be worrying, especially if your business is experiencing financial difficulties. Thankfully there are ways to protect yourself, and one of those is by finding the best water supplier.
Here at SwiftSwitch, we can help you compare business water to ensure your company is partnering with the company offering the best deal for you.
When it comes to finding a reliable, reputable water supplier, some of them obviously charge more than others. Likewise, some tariffs will ensure no nasty price rises, so you know your bills should stay the same, barring any leaks or an increase in usage.
At SwiftSwitch we offer detailed information on many of the country’s suppliers including how they’re performing, what they’re charging and how their contracts compare. So you’ll have all the info you should require to make an informed choice.
Another benefit of using a broker like SwiftSwitch is we like to stay informed about all of the latest news and market developments, so if you’re keen to partner with a company that’s providing a reliable service then we’re here to help.
