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Compare NowBusiness Water for Small Businesses
The water bill for a small business is rarely the biggest line item, but it is one of the few that can be improved without operational change.
You can switch retailer. Small businesses have had that right in England since 2017. Most never have.
This page covers where small business 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 small businesses across England and Scotland.
- Wholesale supply still comes from regional water companies (Thames Water, Severn Trent, Yorkshire Water, and others).
- Small businesses can contract directly with retailers, and multi-site operators can contract centrally for portfolio pricing.
- Typical small business water spend varies widely by site type and size.
- The three biggest savings levers: surface water drainage rebates, meter validation, and tariff reviews.
Why small businesses pay more for water than they should
If your business uses less than 50 m³ of water a year — most small offices, shops and service businesses do — the standing charge is often a bigger line item than the actual water you use. That makes the comparison less about unit rates and more about which retailer offers a low daily standing charge for a low-volume site. Most don’t advertise it.
The other quiet cost: small commercial units are usually in shared-meter buildings or on legacy unmetered supplies. Either situation usually means you’re overpaying — meter installs are usually free, and shared meters can be untangled with a site survey.
The five places small businesses overpay
| Where small businesses overpay | Why it matters |
|---|---|
| Default tariff from 2017 market opening | Most small businesses were auto-assigned to a default retailer when the market opened. That tariff is rarely competitive and was never renegotiated. |
| Standing charges proportionally large on low usage | On a low-volume site, the daily standing charge is often more than half the bill. Some retailers offer a low-volume tariff with reduced standing — they don’t advertise it. |
| Surface drainage on small commercial units | Charged whether or not your shopfront/yard drains to public sewer. Most parade units share a service-yard soakaway — rebate-able. |
| Shared meter with neighbouring unit | Common in older parades and converted properties. You may be paying for the unit next door’s usage. A site survey clears this up. |
| Unmetered supply on rateable-value pricing | Old unmetered properties pay a rateable-value charge that almost always overstates actual consumption. Meter install is free in most areas. |
Can small businesses 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.
Small business water FAQs
My water bill is tiny. Is it really worth switching?
For sites under £400 a year of water, the headline saving might be modest — but two things often hide bigger wins: shared-meter overpayment with a neighbouring unit, and surface drainage charges on a yard that drains to a soakaway. Both are fixable and both can be backdated six years.
I share a building with the unit next door. How do I know who pays for what?
Check your bill against your neighbour’s. If both invoices reference the same SPID, you’re on a shared meter — usually with a default 50/50 split that bears no relation to actual usage. We can survey and recommend either separate metering or a fairer split.
My business is unmetered. Is that always bad?
Almost always. Unmetered properties pay a rateable-value charge that assumes worst-case water use. Metered usage is typically 30–50% lower in cash terms. Meter installation is usually free.
What about my home-based business — can I switch?
Only if your supply is non-household-classified, which usually means business-rated for council tax. Pure home-based microbusinesses on a domestic water supply can’t switch retailer (the retail market is non-household only).
Will switching disrupt service?
No. The wholesaler still owns the pipes and the meter. Only the company that bills you and reads the meter changes. There is no engineer visit, no shut-off.
How much does a typical small business save?
A small shop or office typically saves £300-£800 a year. A larger small business with regular water use (café, salon, small workshop) saves £400-£1,500. A microbusiness on a low-volume tariff with the right retailer can save 15–25% on the standing charge alone.
How do I get started?
Send the most recent water bill. We pull the SPID, your annual volume and current rate, and email a like-for-like alternative within two working days. No commitment, no charge.
