What the wholesale charge pays for

Since the business water market split retail from supply, your bill has carried two layers. The wholesaler owns the pipes, treats the water and takes the wastewater away. The retailer buys those services at the regulated wholesale price and sells them on to you with its own fee for billing and service on top.

Wholesale charges make up the large majority of a typical bill, and no retailer can discount them. Errors in this layer, a wrong drainage assessment or an incorrect return-to-sewer allowance, cost more than the entire retail margin, which is why a water audit checks them first.

The part you can and cannot negotiate

Switching retailer competes the retail fee only, because every retailer pays the wholesaler the same. You reduce the wholesale side by using less water, correcting the assessments it is calculated on, and fixing metering errors. That is audit territory rather than comparison territory, and the two work best together.

England and Scotland differences

In England there are eleven regional wholesalers, so wholesale prices depend on where your site sits. Scotland has one, Scottish Water, so wholesale prices are uniform nationwide, with an extra roads drainage element England does not have. Our guide to Scottish business water tariffs covers the Scottish side in full.

Wholesale charge FAQs

What is a wholesale water charge on a business bill?

The regulated cost of supplying your water and removing your wastewater, paid to the regional wholesaler through your retailer. It is set under Ofwat or WICS price controls and is identical whichever retailer bills you.

Can I reduce the wholesale part of my bill?

Not by switching, since every retailer pays the wholesaler the same. You reduce it by using less water, correcting the drainage and return-to-sewer assessments it is calculated on, and fixing metering errors. That is audit territory rather than comparison territory.