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Compare NowBusiness Water for Property Developers
The water bill for a developer is rarely the biggest line item, but it is one of the few that can be improved without operational change.
You can switch retailer. Property developers have had that right in England since 2017. Most never have.
This page covers where developer water costs come from, how to switch retailer, and where overpayment usually hides.
- England’s non-household water market opened to competition on 1 April 2017 under the Water Act 2014.
- Around 20 retailers are licensed by Ofwat to supply property developers across England and Scotland.
- Wholesale supply still comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others).
- Property developers can contract directly with retailers, and multi-site operators can contract centrally for portfolio pricing.
- Typical developer water spend varies widely by site type and size.
- The three biggest savings levers: surface water drainage rebates, meter validation, and tariff reviews.
Why property developers pay more for water than they should
A development site uses water in three distinct phases — construction (high volume, dust suppression, concrete works), commissioning (pressure tests, system fills), and post-handover (vacant or part-occupied units waiting for sale). Each phase should be billed differently. In practice, the supply often runs through a single Section 75 builder’s account and the volumes get assigned without a clean cut-off, which means the developer keeps paying for water tenants are using.
On the drainage side, completed schemes inherit a surface water drainage charge based on the building footprint as built. If the scheme has SUDS, attenuation tanks, balancing ponds or roof gardens that don’t connect to the public sewer, that charge needs challenging — often the original planning consent already documents the drainage strategy that supports the rebate.
The five places property developers overpay
| Where developers overpay | Why it matters |
|---|---|
| Builder’s supply running past handover | Section 75 construction supplies often stay on the developer’s account for months after first occupation. Tenants and buyers use the water, the developer pays the bill. |
| Surface drainage on schemes with SUDS or attenuation | Modern planning consents typically require sustainable drainage. The retailer’s default surface water charge ignores this — the rebate is supported by the drainage strategy already on file at the council. |
| Construction water on retail-margin tariff | High-volume construction water can sometimes be moved to a project-specific tariff with capped retailer margin. Default contracts charge full margin on every cubic metre. |
| Multiple plots metered as one supply | On phased developments, individual plots can end up on a single master meter, making it hard to apportion water cost to each unit. Untangling this saves time on every future sale. |
| Vacant unit standing charges post-completion | Until each plot is formally transferred to a buyer or letting agent, the developer is liable for the standing charge. Multiplied across dozens of plots over months, this is a meaningful line item. |
Can property developers switch water supplier?
The 12 retailers below are all licensed by Ofwat to supply non-household water. Pricing, service and sector experience vary — most operators shortlist three and run a comparison.
Routes to procurement
Three ways operators in this sector typically bring a new water contract in. Each comes with its own trade-off between control, effort and how sharp the price lands.
Developer water FAQs
When does my Section 75 builder’s supply stop and the occupier’s contract start?
In theory at first occupation. In practice it often runs for months because nobody flags the cut-off to the retailer. We track this on every active site and force the cut-off as part of handover.
How do I claim a surface drainage rebate on a SUDS scheme?
Send the planning-approved drainage strategy plus the as-built drainage plan. The retailer recalculates the surface water charge based on actual public-sewer connection — typically nil or partial — and refunds the difference up to six years back.
My scheme has roof gardens / green roof. Does that affect drainage charges?
Yes. Green roofs and intensive roof gardens significantly reduce runoff to the public sewer. Surface water drainage charged on the building footprint should be reduced accordingly.
How are multiple plots metered on a phased scheme?
Best practice is one meter per plot from day one. If yours is on a single master meter, we can negotiate a meter-installation programme with the wholesaler — usually free or low-cost — to tidy this up before sales complete.
Do I need a separate water contract for construction phase vs occupation phase?
Often yes. Construction supply is typically a Section 75 application with the wholesaler, run via a project-specific retailer contract. Once occupation starts, individual contracts transfer to occupiers.
How much does a typical developer save?
A single-scheme developer typically saves £400-£900 a year on a small site. A medium scheme saves £900-£1,500 in supply terms plus a one-off £3,000-£8,000 historic refund. A multi-site housebuilder saves £2,000-£5,000+ a year on supply alone.
How do I get a quote?
Send your most recent construction water bill plus the planning drainage strategy if available. We come back within two working days with both an alternative supply quote and a flag if there’s likely a historic drainage refund.
