April 2025 Water Rate Increases: How To Avoid Cost Increases

Did you know that UK businesses are facing large increases in water rates this April, driven by a combination of higher wholesale costs and retail price adjustments? If your business hasn’t yet explored switching water suppliers or adopting innovative solutions like Automated Meter Reading (AMR), you could be missing out on significant cost savings and operational efficiencies. 

Why are UK business water rates increasing in April 2025? 

The upcoming water rate increases are tied to rising wholesale water costs, which make up the bulk of what businesses pay for water. In December, Ofwat published its final determinations which confirm an average price increase of 42% before inflation over the five years from 2025-30. The water wholesalers will publish their wholesale charges for 2025/26 in early 2025, with charges priced to fund essential infrastructure projects. These include building new reservoirs, upgrading sewage treatment facilities, and rolling out smart water meters across the country. 

On average the wholesale increase for 2025 to 2026 will be around 20%, with some areas increasing over 35%.

These price adjustments will also reflect the industry’s response to challenges like water scarcity, population growth, and environmental protection requirements. Retail prices, which cover customer service and billing, will rise alongside wholesale costs, compounding the financial impact on businesses. 

Why businesses shouldn’t just stick with their default water supplier 

Despite deregulation of the UK water market – introduced in Scotland in 2008 and England in 2017—only about 25% of businesses have taken advantage of the opportunity to switch suppliers. Staying with your current supplier and not reviewing your water management strategy could mean paying more than necessary, especially as price increases take effect in April. 

Water tariffs vary significantly between suppliers, and businesses that fail to review their contracts may end up with less competitive rates. Additionally, many businesses remain unaware of billing errors or inefficiencies in their water usage that could be costing them money. 

Smart water management - the opportunity to save 

A Smart water management approach, enabled through technology and expertise can help your business: 

• Unlock lower tariffs 
  By analysing your current water usage and supplier rates, you can identify better tariffs that match your business needs. (On average, our clients save over £11,500 annually* by switching suppliers through our services.)
• Simplify the switching process 
  Switching water suppliers can be daunting, with complex tariffs and administrative hurdles. Using the expertise of a partner can help simplify this process, so you can focus on running your business. 
• Recover historic overpayments 
  Billing errors are surprisingly common, with as many as 1 in 8 water bills containing mistakes**. (Our audits have helped businesses recover thousands of pounds in refunds for overcharges.)
• Create efficiencies  
  Smart water management includes identifying inefficiencies, addressing infrastructure issues like leaks, and providing guidance to reduce consumption and costs over the long term.  

Discover how AMR – smart water management technology - can help your business secure better water rates, track real-time usage, and unlock sustainable savings – click to learn more.

How can you manage water supply more sustainably?  
Switching to AMR can revolutionise the way your business manages its water usage: 

• Real-time insights & alerts: Monitor water usage in 15-minute intervals, detect leaks, and address inefficiencies promptly with automated alerts.
• Cost savings & accurate billing: Eliminate manual errors, ensure accurate billing based on actual usage, and reduce disputes and overcharges.
• Sustainability & efficiency: Optimise water usage to reduce waste and carbon footprint, while freeing staff from manual readings with easy, non-disruptive installation. 

By combining these benefits and many more, AMR not only saves money but also supports your business’s sustainability and efficiency goals.