If you are seeking ways to reduce the expenses your business is experiencing, water bill validation is a strategy worth exploring.
It’s no secret that the cost of living in the UK has been steadily increasing in recent months and the costs small businesses are facing have also climbed considerably.
In fact, one report from the Business and Trade Committee earlier this year revealed that British businesses are currently facing significant pressures that are comparable to what they had to go through during the Covid-19 pandemic.
There are various factors contributing to making life challenging for the country’s businesses, from changes in tax and increased administrative burdens, to rising energy bills and invoices being paid late.
Water bill validation is one way in which you may be able to not only save money in the future, but also recoup some money you have already spent if you have been overcharged for your business water service.
What is water bill validation?
Water bill validation is simply a way of making sure that you are paying the correct amount for your business water supply.
If you’ve found yourself asking, “Why is my water bill so high?” lately, that is a sign that water bill validation could be a beneficial process to work through.
This doesn’t mean you have to sit down and wade through all of your water bills for the past 12 months. Instead, you can get support from a team of professionals who will work their way through at least a year’s worth of your billing history and compile a report of their findings.
In the report will be information about any discrepancies in your billing, which could result in rebates if you have been overcharged.
What’s more, water bill validation will also help ensure that you are on the right tariff for your business water supply now, so that you can avoid being overcharged going forwards.
Who is water bill validation for?
Any business can choose to go through the water bill validation process. Given that businesses in England are able to switch their water supplier, this can also be a useful exercise before you compare different deals.
This is because you will get a much clearer idea of what your water usage actually is if you have had your bills validated, which could give you leverage to negotiate a more favourable rate or choose a lower-priced tariff.
Water bill validation is also a useful exercise because it removes assumptions from one area of expense. With utility bills, it can be easy to assume that you are being charged the correct amount, but in our experience that isn’t always the case.
Why has my water bill gone up?
Even if you are careful about how much water you use within your business, you will likely have seen your bills increase in the last 12 months, with further price rises expected in the years ahead.
This is because in 2024, water regulator Ofwat completed its price review to set a maximum amount for water bills.
As part of this process, Ofwat looks at the plans proposed by the water companies across England and Wales to see whether what they are proposing is fair. In this latest price review, Ofwat has ensured that while bills will go up, what we pay is still lower than what the water companies had requested.
However, this doesn’t change the fact that bills are increasing for all of us.
The main reason is to fund the upgrades needed to ensure our water system is fit for purpose, as well as to pay for new environmental requirements to prevent sewage and other water being discharged into our oceans, rivers and lakes.
How much is a business water bill?
This very much depends on which provider you are with and how much water your business uses. Naturally, a company like a golf course will use a lot more water than the likes of a retail store.
So, it’s not quite as simple as being able to provide an average amount because business needs and water use can vary so wildly.
It’s worth noting that your water bill will usually be calculated in one of two ways:
- Based on your actual usage, alongside a fixed charge.
- A set amount each month, regardless of how much water you use.
Depending on your usage, you may be eligible for a large user tariff, rather than having to stay on one of the standard tariffs.
A water bill validation exercise will help identify whether this is an appropriate option for your company and you can then take that information to help you choose the right water supplier and tariff for your needs.
Other water tariffs that are available to business customers include seasonal tariffs if you know you use less water during certain months of the year, and what are known as subscribed demand tariffs.
Under this kind of arrangement, you would forecast your peak water usage and work out your maximum daily water demand for the year ahead. Your water company will then provide you with a tariff that incentivises you to keep your water below your maximum estimate.
It’s worth being aware that on such tariffs you are eligible for penalty payments if you exceed the maximum daily water use that you predicted.
Once again, carrying out water bill validation before can be helpful, because it gives you greater confidence in your water use estimates and could therefore unlock some more favourable water rates.
How else can I save money on my business water bill?
There are various ways in which you can reduce your water usage as a business, all of which are worth considering if you want to lower your water bills.
This is especially important if you are being charged for what you use, rather than an estimate, as you could make significant savings by taking relatively simple steps.
Among the advice from the Federation of Small Businesses is to:
- Install dual-flush toilets in your business premises.
- Replace regular taps with spray taps.
- Repair any leaks in your plumbing as soon as you notice them.
- Encourage your staff to reduce their water consumption.
- Harvest rainwater (where practical) for use within your premises.
