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The water bill for a hair salon is rarely the biggest line item, but it is one of the few that can be improved without operational change.
You can switch retailer. Hair salons have had that right in England since 2017. Most never have.
This page covers where hair salon 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 hair salons across England and Scotland.
- Wholesale supply still comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others).
- Hair salons can contract directly with retailers, and multi-site operators can contract centrally for portfolio pricing.
- Typical hair salon water spend varies widely by site type and size.
- The three biggest savings levers: surface water drainage rebates, meter validation, and tariff reviews.
Why hair salons pay more for water than they should
A typical busy salon runs 8–14 backwash cycles per chair per day. With 4–8 stations and a six-day week, that’s easily 30 m³ a month — comparable to a small commercial laundry. Most salons sit on a default tariff designed for a small office, which has no allowance for that consistent high-volume usage pattern.
The other unnoticed cost: salons are usually tenants in high-street units where the landlord controls the water contract and recharges through the rent or service charge. The salon owner has no visibility into the rate, the standing charge, or the drainage assumption. That’s often where the real overpayment hides.
The five places hair salons overpay
| Where salons overpay | Why it adds up |
|---|---|
| Default tariff with no salon-pattern allowance | High-volume backwash usage is billed at the same retailer margin as a low-volume office. Tier-priced tariffs designed for hospitality bring the unit rate down 5–12%. |
| Backwash and colour-station volume on retail margin | Every cubic metre of warm rinse water is billed at full retailer margin. Worth checking whether a different retailer offers a high-usage tariff for your volume band. |
| Trade effluent banding for hair-product loading | Salons are billed for the standard trade-effluent banding by default. Specific hair-product loading is usually below this — re-banding requests are normally accepted. |
| Surface water drainage charge on shopfront | Charged whether or not the shopfront, signage area or rear yard actually drains to public sewer. Many parade units drain to a shared service-yard soakaway — rebatable. |
| Landlord-recharged water with no benchmarking | If your lease bills water through service charge, you might be paying 8–12% above market because the landlord’s contract has never been competed. |
Can hair salons and salon groups 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.
Hair salon water FAQs
My salon water is paid via service charge — can I do anything?
Yes. Ask your landlord for a copy of the water bill and check what they’re paying per m³. If it’s materially above market, raise it at the next service charge review. A broker can price a like-for-like alternative for the landlord.
Is salon trade effluent really billed differently?
It can be. Hair products, dyes and bleach add specific organic loading. The default trade-effluent band is set high; most salons’ actual loading is lower and the band can be revised down with evidence.
Do I need a separate meter from the unit next door?
Ideally yes. Shared meters between adjacent retail units are common and cause years of incorrect splits. A site survey identifies whether you’re cross-billed; sub-metering costs £200–£400 to install.
How does switching affect colour-rinse water quality?
It doesn’t. The wholesaler still owns the supply and the water hasn’t changed. Only the retailer (your billing provider) changes. Salons running specialist colour or chemical treatments don’t need to alter anything.
I run a multi-site salon group. Can we contract centrally?
Yes. Most retailers will quote a single-contract multi-site rate for groups of 3+ salons, typically with a small group discount on standing charges. Saves admin and usually shaves 3–5% off the unit rate.
How much does a typical salon save?
A small independent salon typically saves £400-£900 a year. A busy high-street salon saves £900-£1,500. A multi-site salon group saves £2,000-£5,000 a year.
How do I get a quote?
Send the most recent water bill. We pull SPID, annual volume and current rate, run the comparison, and reply within two working days with the savings number.
