Water Rate Increase – April 2025 – Business water rates are set to rise, and it’s crucial for companies across the UK to be prepared for the impact of these changes. Understanding the pricing increases set by Ofwat, the UK’s water and sewage regulator, is essential for effectively managing your business’s water costs.
Why IS There A WATER RATE INCREASE for Businesses in 2025?
The rise in wholesale water prices is driven by several factors:
- Enhancements to supply resilience.
- Rising costs of water treatment and distribution.
- Adoption of smart water metering technology.
- Upgrades to sewage treatment works to reduce river pollution.
- Nutrient reduction efforts to minimize fertilizer contamination.
- Construction of new reservoirs to support population growth.
- Measures to offset rising business electricity costs.
The Business Water April Rate Rise 2025:
How is your region affected?
Ofwat’s latest determinations, predict the following increases from April 2025:
Water and wastewater company rate increases by region
| Region | 2024-25 Rate | 2025-26 Rate | Percentage Increase |
|---|---|---|---|
| Anglian Water | £527 | £626 | 19% |
| Welsh Water (Dŵr Cymru) | £503 | £639 | 27% |
| Hafren Dyfrdwy | £447 | £590 | 32% |
| Northumbrian Water | £426 | £506 | 19% |
| Severn Trent Water | £457 | £556 | 22% |
| South West Water | £520 | £686 | 32% |
| Southern Water | £478 | £703 | 47% |
| Thames Water | £488 | £639 | 31% |
| United Utilities | £486 | £598 | 23% |
| Wessex | £556 | £669 | 20% |
| Yorkshire | £467 | £602 | 29% |
Water only company rate increases by region
| Region | 2024-25 Rate | 2025-26 Rate | Percentage Increase |
|---|---|---|---|
| Affinity Water (central region) | £192 | £235 | 23% |
| Affinity Water (east region) | £225 | £278 | 24% |
| Affinity Water (south east region) | £249 | £291 | 17% |
| Bournemouth Water | £144 | £191 | 32% |
| Bristol Water | £226 | £234 | 4% |
| Essex and Suffolk Water | £286 | £318 | 11% |
| Portsmouth Water | £120 | £150 | 25% |
| South East Water | £245 | £294 | 20% |
| South Staffs Water (Cambridge region) | £163 | £203 | 24% |
| South Staffs Water (South Staffs region) | £178 | £224 | 26% |
| Sutton and East Surrey (SES) Water | £254 | £249 | -2% |
How Black Sheep Utilities Can Help
At Black Sheep Utilities, we are committed to helping businesses navigate these changes and find the best possible rates for their water supply. Since deregulation in 2017, businesses in England have had the option to switch water suppliers and secure competitive rates. However, around 80% of businesses have never switched and continue to pay default business water tariffs set by their regional supplier. It’s important for business owners to shop around to find the best possible rate for their water before the pricing increases in April.
Adopt Water Efficiency Techniques and Invest in Water-Saving Devices
One of the best ways to mitigate the effects of rising costs is to invest in water-saving devices and make more conscious decisions about water usage within the premises. Some methods or services that could be integrated include:
- Getting a water audit – A water audit can help review how water is used within the business and property to identify inefficiencies, detect leaks, and assess whether commercial processes use water efficiently.
- Installation of AMR/AMI smart meters – Automatic meter reading devices can provide business owners with real-time water usage data to help detect leaks early and track changes in water consumption and use.
- Taking monthly meter readings – Regular meter readings help track changes in water consumption and ensure bills remain accurate.
Business Water Price Cap
To protect businesses that remain on default tariffs, Ofwat has imposed a business pricing cap, which limits annual price increases, except for large industrial users who are expected to negotiate their contracts independently. These rates consist of wholesale price rises plus retail fees.
By understanding the upcoming changes in business water rates and taking proactive steps to manage water consumption, businesses can mitigate the impact of these increases. Black Sheep Utilities is here to help you navigate these changes and find the best possible rates for your water supply.
SEE HOW MUCH YOU COULD BE SAVING
For more information
on The Business Water Market phone us on
01273 914000
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