Water bills rise on 1st April each year and water companies are already warning that business customers could see larger hikes than in recent years due to rising inflation. We spoke to Ollie Willows from Core’s energy and water business advisory team to find out what customers can expect and how Core can help them prepare.
What affects the price of water?
Unlike energy, where costs are severely impacted by global factors and market conditions, water companies base their pricing decisions on different factors, one of which is inflation. It is fair to assume that water bills will reflect the current percentage increase in inflation when prices rise in April 2023. However, individual water companies will be influenced by their own factors, incentive schemes and local usage levels. The drought may also have an impact and this will affect some areas of the country more than others, for example where drought conditions have been more pronounced or agricultural water usage has been high.
Should businesses be as worried about water as energy?
Water will not see the same price volatility and increases as energy. However, this is yet another area where business costs are likely to rise. Coming on top of other budget pressures, it is important that companies start thinking about water costs now, before April’s price increases come into effect.
What can businesses do about water costs?
The good news is that there are things we can do at Core to help you take control of water costs:
Water audits
A water audit looks at usage across your business and sites to check for leaks and inefficient use. A water audit can generate significant cost savings and identify longer term solutions to improve, measure and reduce water consumption for greater sustainability.
Invoice validation
A review of your current and past bills allows us to identify and recover potential overcharges on your behalf. We can claim rebates for you which can sometimes run into the tens of thousands.
Switching supplier
We compare rates from our trusted business water suppliers on your behalf. Our knowledge of the different suppliers and the factors affecting their pricing means we can secure the best contract for your business. We’ll manage the whole switching process for you, making it as simple as possible to take control of your costs.
Metering
If you are on a Rateable Value (unmeasured) tariff, we may recommend installing a water meter. There is typically a short payback on this investment, although we will do a full cost evaluation before recommending it as an option.
