Reducing expenses can make a huge difference to a business’ profit, and ultimately, their success and growth. That is why many companies are becoming increasingly worried about rising energy costs, including their water bills.
For tips on how to reduce their water usage or switch to a more cost-efficient water supplier, read on.
What is the problem of increasing water bills?
Over the last few years, UK water customers have had to see their water charges increase every time they get a bill sent through. Now, the Water Services Regulation Authority (Ofwat) has revealed they could rise even further, expected to grow by 21 per cent over the next five years.
For an average household, this is the equivalent of £94, but for a large company that has multiple sites and uses lots of water, this figure will be significantly greater.
This estimation could be even higher in reality, as Ofwat has tried to restrict the bill hikes, Money Week has reported.
For instance, Severn Trent originally proposed a £144 hike for the average billpayer, which Ofwat limited to £93.
Customers of Southern Water, however, will experience a 44 per cent increase in their water bills before 2030.
A BBC investigation has reported that water providers want to increase their charges higher than Ofwat’s limits in order to pay for more investment into the water supply.
England’s water system faces lots of problems, which is why companies are falling into heavy debt. Indeed, Thames Water is only just surviving following a £3 billion emergency loan.
The water supplier, which services 16 million customers in Britain, currently has £16 billion of debt, with this expected to grow to nearly £18 billion by the end of March 2025.
Consequently, Thames Water plans to raise bills by 53 per cent between 2025 and 2030.
This debt has been caused by poor regulation from Ofwat, a lack of investment over the years into the UK’s ageing water pipes, and an increasing population.
The Victorian water pipes are no longer able to cope with the huge demand, particularly in urban areas where populations have escalated. At the same time, there has been a rise in rainfall over the last 30 years of nine per cent due to climate change. Therefore, storm drains are not able to cope with this, resulting in sewage entering waterways.
Without increasing customers’ bills, water suppliers will struggle to continue providing an adequate amount of clean water to households and businesses across the UK, as well as limit water pollution.
Therefore, if companies want to keep their costs low, they need to reduce their water usage. They can do this by:
Encouraging efficient water usage among staff
Companies should educate staff on how to reduce their water usage, such as by turning off taps when they are not in use.
If there are showers in the workplace, they could also limit these to five minutes; staff could use a washing bowl for washing up, fill a kettle just to the amount of water needed when making a round of teas, and put the dishwasher on only when it is full.
They could also get involved by reporting leaks and feeling part of the water conservation initiative.
Investing in water-efficient systems
Companies should also be more vigilant on maintenance jobs, such as fixing leaking taps, not using sprinklers in outdoor areas, and investing in water-efficient appliances. Smart controls on urinals, taps and toilets could also be a worthwhile expense.
It might also be valuable to have a recycling water system to use up water that would otherwise be wasted.
Switching energy provider
Although most water suppliers are likely to increase their bills over the next few years, it is still worth switching water providers, as some of their hikes might be lower than others.
It is a good idea to reassess the charges at least once a year, as price increases could mean a supplier that was originally cheaper is now more expensive than one of its competitors.
Businesses can access help finding the perfect supplier by using a water broker, which can identify the best tariff for their needs. They can also look at different pricing structures and market developments, helping companies have all the information they need to make a good choice and, ultimately, save some money on their water bills.
Finding the most cost-effective tariff, as well as reducing water usage, will help businesses navigate the next few years of increasing water bills.
