Why have business water rates risen in April?

What’s changing as of April 2025?

Essentially, this April marks the beginning of a new regulatory period for the water industry in England and Wales. Ofwat, the sector’s regulator, has approved plans that enable water companies to raise their prices to help fund a £104 billion upgrade across the sector. This programme is intended to deliver “substantial, lasting, improvements for customers and the environment.”

Specifically, these improvements include replacing thousands of miles of ageing, leaking pipes across the water network, and cutting down on the amount of untreated sewage being discharged into rivers and seas. Water companies say these upgrades are vital to improving service, reducing environmental damage, and preparing the network for increased demand linked to climate change and population growth.

The price increases affect both households and non-household customers. However, as you may have already found, business customers are likely to feel the impact a bit more sharply because of higher usage levels. However, this also means that retailers who supply water to commercial customers have already begun adjusting their tariffs in response to the change – which could in turn open up opportunities for you to make savings.

Of course, this largely depends on exactly what your business rates for water are currently. How much more you’ll be paying depends on your water supplier, as well as the location of your business, and how much water you use. There’s no flat-rate increase across the board. To see what the changes mean for you, you can check your most recent bill, or contact your retailer directly. (Many retailers now publish updated tariff documents on their websites.)

Alternatively, you can use our very own business water comparison service here at The Business Water Shop – it only takes a few seconds to see if you could get a better deal.

Why have these changes come into effect?

While the rise is unwelcome, it’s not particularly surprising. In fact, it’s a direct response to long-term pressure on the water industry from environmental campaigners, regulators, and the public, many of whom cite underinvestment, leaking infrastructure, and sewage pollution as key reasons for an overhaul.

Meanwhile, water companies are facing rising costs behind the scenes, contending with the rising price of energy, treatment chemicals, labour, and materials. Ofwat’s updated framework enables suppliers to recover more of those rising operating costs, as long as they meet tough new performance targets.

To use the regulator’s own words:

“We consider that these expenditure allowances are sufficient for companies to meet their statutory and regulatory obligations including performance commitments, if they are operating efficiently.”

The goal is to strike a balance between long-term resilience and short-term fairness. Unfortunately though, in the meantime it still means a larger bill.

What can you do about it?

The good news is that as a business customer, you’re not locked in to a specific water retailer (unlike domestic customers). That means if you’re based in England, you’ve got access to the open water market – which means you can shop around and switch to another supplier if you’re not happy with your current rates or service.

In case you need a few tips on how to get started, we wrote a quick primer on how to get started switching business water suppliers.

As covered in that post, we’d always recommend starting by checking your bill and your current tariff. Are you being charged in line with your usage? Are there better offers available? It’s also worth looking at how efficiently you’re using water. Fixing leaks, upgrading old fixtures, or installing smart meters can all reduce your consumption and bring your bills down. If your usage is high, a full business water audit could uncover savings you didn’t know were there.

And if you do decide to make the switch, that’s exactly where we can help. Our network of trusted suppliers encompasses the whole of the UK, which makes us the perfect option to get you the most competitive water quotes for your business. We’ve even been able to save some customers up to 55% on their water bills, and you can count on us to use all our resources and industry expertise to get you the best deal.

It only takes a few minutes to get your online quote – so if you’re thinking about moving to switch business water suppliers, there’s never been a better time to do it!