Are business water rates cheaper than domestic?
On average, domestic water rates are 13% cheaper than the equivalent default business tariffs.
From April 2025, a typical metered household will pay £739 a year, while a comparable business on default rates will pay £833.
However, costs vary significantly by region. Read on to see how prices compare in your area.
How expensive is water in my area?
The British water network is not a single interconnected system. The country is divided into regional water and wastewater networks, each managed by a separate private water company. The amount users pay for water services in each region depends on water scarcity and the cost of maintaining the local water network.
Our water experts compared household metered water rates with the default business water tariff in each region. See the results in the graph below.
In 2025, household rates are slightly cheaper than the default business rates in all regions of the country.
Where is water most expensive in Britain?
The most expensive region for water rates is the South West, where the average household and small business customer now pays over £1,000 in water bills each year. In Devon and Cornwall, the water company maintains thousands of miles of pipes to serve only a small population, making bills more expensive.
Southern Water is quickly catching up with South West Water following a 40% price increase in April 2025. Learn more in our guide to the business water price increase.
Where is water cheapest in Britain?
In 2025, the cheapest water bills for both households and business water bills are in the Northumbrian Water area.
Northumbria benefits from abundant rainfall compared with areas of high water scarcity, such as the South East, reducing the need for expensive infrastructure like reservoirs or long-distance water transfers.
Northumbrian Water also benefits from geography that is favourable for reservoirs, with upland areas like the Pennines and Cheviots helping to naturally collect and store water.
Are business water rates more expensive than households?
Yes, our study has found that, by comparing an average household to a comparable business property, default business water rates are, on average, 13% more expensive.
The default business water rates are paid by approximately 80% of businesses in Britain.
The water regulator Ofwat caps the rates business water suppliers can charge on default tariffs. However, Ofwat has allowed the cap to rise ahead of inflation in recent years to encourage competition in the deregulated business water market.
This increase in the water price cap has contributed to business water rates being, on average, more expensive than household rates.
💡Businesses can save up to 20% on their water rates by switching to fixed rates offered by the most competitive business water suppliers. Find out how much your business could save using our business water comparison service.
Our study of domestic versus business water prices
Our study compared published domestic and business water rates for 2025/26 for the following property type:
- Water consumption – 120 cubic metres per year (350 litres per day), which is the average household water consumption.
- Water meter size – A 15mm water meter, standard for household and small commercial properties.
- Surface area – 70 square metres, the size of a small garden (this is relevant in regions with surface drainage charges).
- Return to Sewerage Allowance (RSA) – Used the standard RSA percentage automatically applied in each region.
The domestic water rates we used are published on each local water company’s website, and the default business water rates are published annually on our business water rates page.
Our study has not considered unmetered water rates, as these rely on rateable values, an estimate each council made of the value of individual properties in 1991. These historic valuations are highly subjective, meaning water rates vary significantly from one property to another.
💡Use our water meter calculator to find out whether requesting a water meter for your home could save you money.