Business water in Scotland
Business water for hotels, pubs and restaurants in Scotland
How Scottish Water’s charges, the 2026 revaluation, kitchen drainage and seasonal trade shape water bills for Scottish hospitality.
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Last updated October 2026
Scotland
Business water for hotels, pubs and restaurants in Scotland
A 30-bedroom hotel in Perthshire runs its laundry flat out from Easter to October, then drops to a handful of guests through the winter. Its water bill follows that curve on the volume side, but the fixed charges and drainage don’t move, and since April 2026 the drainage charge for many hotels has been calculated on a higher rateable value. Scottish Water sets all of those wholesale charges, and they’re the same whichever licensed provider sends the bill.
The Business Water Shop is an independent business water broker and a trading name of Clearsight Energy. We compare quotes from a panel of licensed water retailers for businesses in England and Scotland.
This page is for hotels, guest houses, pubs, restaurants, cafés and holiday accommodation in Scotland. It covers what changed with the revaluation, how Scottish Water treats kitchen waste water, seasonal trade, rural supplies and leaks in older buildings.
What makes up a Scottish hospitality water bill
Most Scottish businesses have a metered supply. You pay a fixed charge set by meter size and a volume charge for the water you use. Scottish Water’s business charging page explains that the waste water charge assumes 95% of the water you use goes back to the public sewer.
Two charges are based on rateable value (RV) rather than use. Property drainage pays for taking surface water away from your premises. And if your supply is unmeasured, your water and waste water charges are worked out from RV as well.
On top of the wholesale charges sits the retail fee, which covers billing, reads and customer service. That’s the only part that differs between providers. For the 2026/27 wholesale picture, see our Scottish tariffs guide.
Pull out one bill per site and note whether it’s metered, the meter size and the RV used for drainage. Those three items explain most of the total.
What the 2026 revaluation means for hospitality
Scotland’s non-domestic revaluation took effect on 1 April 2026, using rental values at 1 April 2025. RVs are set by the Scottish Assessors, who are independent of government. Because drainage and unmeasured charges use RV, the revaluation feeds straight into water bills.
Hospitality saw some of the biggest moves. The Scottish Government’s statistics show:
| Property type | Change in rateable value |
|---|---|
| Hotels | Up 27% |
| Self-catering units | Up 40% |
| Public houses | Up around 14% |
| Cafés and restaurants | Up 7% |
| Accommodation overall | Up 29% |
These are sector averages, so your own premises could have moved more or less. Where a bed and breakfast has a domestic part, the assessor separates it out.
Here’s what that means on a bill
This example is illustrative. A pub pays £800 a year in property drainage. If its RV rose by the 14% pub average and the rate per pound of RV stayed the same, the drainage charge would go up by about £112. A self-catering unit paying £200 with a 40% RV increase would see about £80 more.
Check that the RV your provider bills on matches the current valuation roll. If the site doesn’t drain surface water to the public sewer at all, our Scottish drainage guide explains how to challenge the charge.
Kitchens, grease and trade effluent
Scottish Water draws a clear line here. Its trade effluent page says discharges from hotels, caravan sites and restaurants aren’t considered trade effluent, so a typical kitchen’s waste water doesn’t need a trade effluent consent.
Some hospitality activities do sit inside the system. Scottish Water’s trade effluent guide says hotel laundries and swimming pool backwashes are normally covered by a Letter of Authorisation, which is used for small, low-risk discharges of under 2 m³ a day. Applications go through your licensed provider, and Scottish Water won’t issue a consent until one is appointed.
Grease is where kitchens get into trouble. Scottish Water’s leaflet on commercial kitchens makes the owner responsible for clearing blockages in private drains, and says it will recover the cost of clearing a public sewer from a business found to have caused the blockage. Its practical advice runs like this:
- never pour cooking oil down a sink, and scrape pans into a container before washing
- if you use a grease trap, it should be at least twice the size of the sink draining into it, emptied regularly and refilled with cold water
- keep dishwasher waste out of the grease trap, because the hot water melts the grease and carries it on
- avoid food macerators, which Scottish Water doesn’t recommend
- store waste oil in a sealed container for a registered waste company to collect
Put those points on the kitchen wall and include them in new starter training.
Seasonal trade, closures and metering
Seasonal businesses still pay through the quiet months. WICS says the vacant property exemption ended in April 2017. On a metered site that’s closed, Scottish Water’s charges scheme still applies the fixed charges and drainage, with volume charges only if the meter records use.
If your premises is unmeasured, the RV-based charge doesn’t care whether you’re busy. Scottish Water’s charges scheme says it’ll fit a meter to an existing unmeasured supply at no additional charge when your provider asks, unless installation is impractical or the cost is excessive. You can’t switch back once a meter is fitted, so compare your RV-based charge against realistic metered use first.
Meter size matters in the other direction. A hotel or venue sized for festival weeks or peak summer may be on a bigger meter than it needs the rest of the year, and fixed charges rise with meter size. Data is the way to judge that. Scottish Water allows data loggers from accredited installers, and Clearsight can arrange AMR loggers for customers.
Scottish Water is also replacing older business meters with smart meters on a rolling programme. Its FAQs say there’s no charge for installation, you can’t opt out, and it’s working with providers to make the data available to customers in future.
Rural sites and private water supplies
A holiday cottage or country hotel might take its water from a spring, well or borehole instead of Scottish Water. That’s a private water supply. The Drinking Water Quality Regulator says larger supplies, and those with a commercial activity, are classed as regulated supplies, and the Water Intended for Human Consumption (Private Supplies) (Scotland) Regulations 2017 are enforced by local authorities, which keep a register of every private supply in their area.
If you let holiday accommodation on a private supply, DWQR says you must display a notice telling guests the water comes from one. Guests with concerns go to the local council’s environmental health team.
A private water supply isn’t billed by a licensed provider, but your waste water may still reach the public sewer. WICS says drainage charges apply where any part of a property drains to the public sewer, including a septic tank overflow. So a rural site can have a sewerage or drainage SPID even with no Scottish Water supply.
If you’re not sure what a rural site is connected to, ask your provider to confirm which supply points are registered there.
Leaks and older buildings
Victorian hotels, tenement pubs and converted steadings share a weakness. Long pipe runs, old fittings and unheated spaces make leaks likely and hard to spot. A cistern left running in a closed-off wing can go unnoticed for weeks.
A logger shows the overnight baseline, which should be close to zero when nobody’s using water. If it isn’t, something’s running. Scottish Water owns the meter, but it says you’ll pay the cost of replacing it if it’s damaged by frost, so insulate meters and pipes in cold spaces.
After a long closure, Scottish Water points businesses to Water UK’s advice on restoring drinking water supplies after inactivity. Read it before reopening for the season.
If you’d like a fuller look, our water audit checks bills and how a site uses water.
How we’d handle this
We’d start with each site’s address and SPID, then check whether it’s metered, what size the meter is and which RV is being used for drainage and any unmeasured charges. For seasonal businesses, we’d look at whether the meter size fits the year. Then we’d ask our panel of licensed retailers to quote, with the wholesale charges shown once and each provider’s retail fee and billing terms underneath.
Want a quote? An address and SPID are enough to compare business water suppliers.
Questions
Questions from Scottish hospitality businesses
Does my restaurant kitchen need a trade effluent consent in Scotland?
Not usually. Scottish Water says discharges from hotels, caravan sites and restaurants aren’t treated as trade effluent. You’re still responsible for keeping grease out of the drains.
Why did my hotel’s drainage charge go up in April 2026?
Drainage is based on rateable value, and the 2026 revaluation took effect on 1 April 2026. Hotel RVs rose by 27% on average, according to the Scottish Government.
We close for the winter. Do we still pay water charges?
Yes. There’s no vacant property exemption in Scotland. On a metered site, fixed charges and drainage continue, and volume charges apply only if water is used.
Can a charity-run café or venue get the charity exemption?
Often not. The scheme excludes premises with a permanent alcohol licence, holiday lets and cafés open to the public for more than 20 hours a week.
Our holiday let uses a private water supply. Do we need a licensed provider?
Not for the water itself. If waste water or surface water reaches the public sewer, you’ll still need a provider for sewerage or drainage.
Sources16 references we checked for this page
- Charging for businesses scottishwater.co.uk
- What is trade effluent scottishwater.co.uk
- 051121TradeEffluentGuidetoServices scottishwater.co.uk (PDF)
- 170718teq01commercialkitchens scottishwater.co.uk (PDF)
- 100225Pt1WholesaleChargesScheme25 26 scottishwater.co.uk (PDF)
- Data logging scottishwater.co.uk
- Your water meter scottishwater.co.uk
- Non household smart metering faqs scottishwater.co.uk
- Business and the water industry in scotland scottishwater.co.uk
- 080926sgespolicyv17 scottishwater.co.uk (PDF)
- About the 2026 revaluation gov.scot
- Changes by property type gov.scot
- Frequently asked questions wics.scot
- Private water supplies dwqr.scot
- Regulatory guidance and information dwqr.scot
- Visiting holiday lets bed breakfast properties on private water supp… dwqr.scot


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