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Business Water for Small Businesses
Compare licensed water retailers for small businesses and check the fixed charges that decide most small bills.
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Home / Who we help / Small businesses
Last updated August 2026
Who we help
Business Water for Small Businesses
Most small businesses have never chosen a water retailer. The premises came with a supply, the bills arrive, and they get paid. That default position is exactly why small firms are the group most likely to be overpaying, because deemed tariffs and stale fixed charges are priced for inertia.
You can switch retailer. Small businesses in England have had that right since 2017, and Scottish firms since 2008. This page covers how small business water is charged, what a switch involves, and where overpayment usually hides.
| Wholesale supply | Comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others). |
|---|---|
| Contracting | A single premises can contract directly with any licensed retailer, whatever its size. |
| Biggest savings levers | Moving off deemed tariffs, standing charge checks and surface water drainage banding. |
| Deemed tariffs | A premises that has never switched sits on default terms, which are typically the most expensive a retailer offers. |
| Market opened | England in 2017 and Scotland in 2008. |
| Licensed retailers | Around 20 are licensed by Ofwat to supply non-household water. |
Where the money goes
Why small businesses pay more for water than they should
Small business bills are dominated by fixed charges, and fixed charges are exactly what move when you switch or renegotiate. The water itself is often the smallest line. A premises that has never switched is almost certainly on deemed terms, and that is the first thing to fix.
The market rewards attention, and small firms have the least spare attention of anyone. Deemed tariffs, estimated readings and drainage bands set for a previous occupier all persist quietly because the bill is too small to fight and too regular to question.
The percentages tell a different story. Fixed charges are a large share of a small bill, so correcting a meter size, a drainage band or a default tariff moves a small bill proportionally further than it would move a large one.
Where it shows up
The five areas small businesses overpay
Where small firms overpay and why it matters.
Deemed and default tariffs
If you have never actively chosen a retailer, you are on one. It is the most common single reason a small business pays more than it needs to for water.
Standing charges and meter size
The fixed charge follows the meter size rather than the business. A meter sized for a previous occupier can carry a standing charge the current business never needed.
Surface water drainage
Drainage bands in shared and converted buildings are often set for the whole property or a former use. If your premises changed use or size, the band is worth checking.
Estimated readings
Small meters are read infrequently, so estimates run for long stretches and drift from reality. A catch-up bill after years of low estimates is a common and avoidable shock.
Leaks on the private side
Everything from the boundary to the taps is the responsibility of the occupier. A slow leak on that stretch bills like consumption, and on a small account it shows up fast.
Results
Case studies
Recovered on historic surface water drainage charges that should never have applied.
Worth knowing
Eligibility and how the market works
Any non-household premises is eligible, whatever its size. The open market is run by Open Water, with around 20 licensed retailers competing for non-household customers. England opened in April 2017 and Scotland has been open since 2008.
Mixed-use premises follow the main use of the supply. A shop with a flat above on the same meter is worth registering correctly, so the household side is billed as household and the business side can be switched.
The market
Switch water supplier for your business
Yes. England’s non-household water market opened to competition in April 2017 and Scotland’s opened in 2008, so every business can choose a different water retailer. Wholesale supply still comes from your regional water company; only the retailer (the company that bills you and reads your meter) changes.
The 12 retailers below are all licensed by Ofwat to supply non-household water. Pricing, service and sector experience vary from retailer to retailer.
Choose your route
Routes to procurement
Three ways small businesses typically bring a new water contract in. Each comes with its own trade-off between control, effort and how sharp the price lands.
Direct with a retailer
The business signs straight with a licensed retailer. Best for a single premises that wants a sharper rate. You handle the comparison and the switch yourself.
Multi-site contract
A firm with more than one premises can put every site on one contract with one retailer. One renewal date and one point of contact, whatever the mix of sites.
Broker-led market test
A water broker compares the market for you, handles the paperwork and manages the switch from start to finish. Nothing changes on site.
Why choose The Business Water Shop
- Award-winning independent brokerage, not owned by or tied to any water retailer.
- Rated 5 stars on Google and 5 stars on Trustpilot by UK businesses.
- Experts with experience in business water for small businesses across every sector.
- We compare quotes from up to 14 licensed retailers.
- We handle the whole switch, from the comparison and paperwork to the supplier contact.
- One point of contact for multi-property portfolios.
Questions
Small business water FAQs
How do I get a quote?
Send a recent water bill for the premises. The SPID, annual volume and current retailer are all on it. We come back within two working days with an alternative quote and a flag if anything looks worth checking on tariff or drainage banding.
Our bill is only a few hundred pounds a year. Is switching worth it?
Often yes, because fixed charges dominate small bills and those are the charges that move most between tariffs. The process takes little of your time, so the effort-to-outcome ratio favours checking.
I rent my premises. Can I still switch?
If the water account is in your name, yes. If your landlord holds the account and recharges you through the rent or service charge, the switch is theirs to make, though it is worth raising with them.
Who fixes a burst pipe or supply problem?
The regional wholesaler still owns and maintains the network up to your boundary, whichever retailer you choose. Anything on the private side of the meter remains your responsibility.
Will switching disrupt anything on site?
No. A switch is paperwork rather than plumbing. There is no interruption to supply, no engineer visit and nothing changes at the premises.
We run several premises. Can they go on one contract?
Yes. Retailers operate nationally, so a group can consolidate sites in different wholesaler regions onto a single retailer, one contract and one point of contact.
Do small businesses pay VAT on water?
It depends on the activity. Most service and retail businesses do not pay VAT on the water supply itself, while some industrial classifications do. VAT follows your SIC classification rather than your size or your retailer.
