Wholesale Price Of Water Set To Increase In April 2024

As we approach a new financial year, that means there are just a few weeks left until wholesale charges for water increase on April 1st.

Each year, suppliers of wholesale water settle on the prices they intend to charge for water and wastewater. The prices may increase or decrease, but this time around prices are going up, meaning you’ll need to pay more for your business’s water.

Why Are Prices Increasing?

The price of wholesale water changes each year at the start of the financial year and wholesalers can either increase or decrease their costs.

2024 marks the beginning of a brand-new five-year pricing framework — the PR24 (Price Review 24). This acts as a guideline to Ofwat to show on average what each of the country’s water suppliers plan to charge for the next five years.

Suppliers are permitted to request up to a five percent increase, although they can ask for more if investment is required to help them provide a better service for their customers.

Any changes to bills must be approved by the water regulator Ofwat. Once this has been approved, Wholesalers publish their charges on their website in a document that is likely to be called a Scheme of Charges.

How Are Bills Determined?

Your water bill is made up of two parts:

1. The first is wholesale charges, which cover the cost of getting the water to your business premises, as well as the cost of taking it away and treating the wastewater. The wholesale charges are made up of a mix of the price for each cubic meter used and fixed charges that contribute towards the infrastructure needed to supply water.
2. The other part of your bill is the retail fee, which covers the services provided by the suppliers, including that’s billing, meter reading, account management and customer support.

How Much Will Your Bills Increase?

The impact these changes will have on your bills will depend on a few factors. Firstly, each supplier’s pricing is different, so much depends on the company you’re with. The region your business is located will also play a role in determining your costs, so if you have multiple locations then your bills may vary from region to region.

Additionally, the terms of your contract will also dictate how these changes affect your bills. If you’re in a fixed-term contract then these changes may not affect you – at least until the minimum contract term ends.

If you’re in doubt, our advice is to check your contract or speak to your supplier who will explain any potential changes to your costs, however we’ve collated a list of price increases below:

Is Now A Great Time To Compare Water Suppliers?

So with wholesale prices set to increase, is now a great time to find a new supplier? Well, this may depend on the amount your bills are set to increase by.

If you’re in a fixed-term contract and your bills will be unaffected, you may be happy with your current supplier. However, if your bills are about to jump up, now could be a great time to find yourself a better deal on your water.

We help you find the right supplier by discussing your needs and preferences to help identify suitable options. We then offer detailed information on various water suppliers, tariffs and pricing structures, ensuring you’re armed with all the data you need to make informed decisions.

Another benefit of using a broker like us is we stay informed about the latest regulatory changes and market developments, ensuring our users have access to the most current information and have a clear picture of the landscape before making any decisions.

If you have any questions about the upcoming changes or you’re keen to discuss your options, speak to us and we’ll be happy to help you switch business water supplier.