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What is a water leak allowance?
A leak allowance is a rebate you can claim when a hidden leak has pushed up your water bill. Once the leak is fixed, your retailer can credit back some of the water, and often the sewerage. You were charged for but never actually used.
For a business hit by a surprise spike, it’s the route to getting some of that money back.
What a leak allowance is
When a pipe leaks on your side of the meter, the meter still counts every litre, so you’re billed for water that ran straight into the ground. A leak allowance recognises that you didn’t use that water on purpose, and credits back part of the cost once the leak is repaired. Because your wastewater charge is based on water bought, the allowance often covers the sewerage element too, as the leaked water never reached the sewer.
When you can claim
You can usually claim when the leak was hidden, underground or otherwise not obvious, the bill clearly spiked as a result, and you’ve had it repaired promptly. Visible leaks left unfixed, or leaks on fittings rather than pipework, may not qualify. The exact policy varies between wholesalers.
How to claim
Fix the leak first, then apply to your retailer with evidence, repair invoices and meter readings showing usage back to normal. They assess the claim against the wholesaler’s leak allowance policy and, if it’s accepted, credit your account. It’s usually a one-off allowance per leak, so it pays to get the paperwork right.
What a leak allowance is worth
A leak allowance credits back the water that escaped through a genuine leak, rather than charging you for water you never used. On a serious underground leak that can be a large sum, since the lost volume often dwarfs your normal use.
Many allowances also cover the wastewater side. If the leaked water never reached the sewer, you shouldn’t be paying to treat it, so the sewerage element can be credited too. Our business water rates page explains how those two charges sit together.
Evidence you’ll need to claim
Retailers want proof the leak was real and that you fixed it. That usually means a plumber’s invoice, before-and-after meter readings, and a short account of what happened. Keep these together, because a tidy claim gets processed faster.
If you’re not sure where to start, our guide on who your water supplier is helps you reach the right retailer, and a business water audit can pinpoint whether you’ve got a hidden leak in the first place.
Catching leaks before they cost you
The cheapest leak is the one you spot early. Regular meter checks, a quick look at any sudden jump in usage, and knowing where your stop tap is all help. Our post on how to find out if you have a leak runs through the simple checks.
How a leak allowance is calculated
The retailer works out what your use should have been without the leak, usually from your billing history, then credits back the difference. The clean-water side covers the volume that escaped. The wastewater side is credited where the leaked water soaked into the ground rather than reaching the sewer, since you shouldn’t pay to treat water that was never collected.
The exact method varies between retailers, but the principle holds steady. You pay for your normal use, not for the leak. Our business water rates page explains how those clean and waste charges sit together on the bill.
Leak allowance FAQs
What is a leak allowance?
A rebate on water lost through a hidden leak, credited back once the leak has been repaired.
Who can claim a leak allowance?
Businesses whose bill spiked because of a hidden leak that has since been fixed promptly. Policies vary between wholesalers.
Does it cover sewerage charges too?
Often, yes, because the leaked water never reached the sewer, the allowance can include the wastewater element as well as the clean water.
Do I have to fix the leak before claiming?
Yes. Allowances are granted on the basis that the leak has been repaired, with evidence such as a repair invoice.
How long do I have to make a claim?
It varies by retailer, but most expect a claim reasonably soon after the leak is found and repaired. Leaving it months can weaken the case, so it’s worth claiming promptly.
Will I get a refund or a credit?
Usually a credit against your account rather than a cash refund, applied once the retailer accepts the claim and the repair evidence.
How is the leaked volume worked out?
The retailer compares your usage during the leak against your normal history, and credits the difference rather than charging you for water you never meant to use.
Had a leak spike your bill?
We can help you check whether a leak allowance applies and get the claim right, with no obligation.
