Business Water Rates

Business Water Rates 2025/26

Commercial water bills can be confusing, with rate calculations often stretching across multiple pages.

Our business water experts have prepared this guide to current water rates to help business owners understand how business water rates work and how to benefit from lower bills.

Here are the key sections of our guide:

• English business water rates 2025/26
• Scottish business water rates 2025/26
• Did business water rates go up in April?
• How are business water rates calculated?
• How do water rates work if I don’t have a water meter?

English business water rates 2025/26

Using published data from each regional default water supplier, here are the 2025/26 business water rates relating to the ten biggest water companies.

These water rates apply for water used by commercial properties from 1 April 2025 to 31 March 2026.

💡See below for a full breakdown of 2025/26 business water rates.

Source

Over 80% of all English pay the needlessly expensive default water rates presented in the table above.

Find a cheaper fixed-rate contract with AquaSwitch. Compare commercial water rates currently offered in the market with our business water comparison service.

Scottish business water rates 2025/26

Scotland has a single company responsible for managing the water and sewerage network called Scottish Water.

Business Stream is Scotland’s default business water supplier. Here’s a summary of deemed water rates for small commercial properties from 1 April 2025.

Source

In Scotland, default business water rates are significantly higher than the fixed rates available on the market. Find out how much you can save with our comparison service.

Small business water rates

Upon the deregulation of the water market, the commercial properties of small businesses were assigned a Supply Point ID and moved into the open water market.

These small companies pay the English and Scottish business water rates we have presented above, except for:

• Mixed-use properties that pay council tax and continue to be charged household water rates directly by the local water company.
• Small businesses without a water meter are charged using an unmeasured or assessed tariff.
• Small businesses that have switched to a cheaper fixed business water tariff.

Do businesses pay water rates?

Yes, businesses will pay water rates when they have any property connected to British water infrastructure. That can be any of the following (and typically all of them):

• Potable water pipes coming into the property
• Sewage pipes going away from the property
• Rainwater drains around your property.

The business water rates your business pays depend on your region. See below for an example of a typical business water rates:

Business water rates example

Business water rates are confusing, so let’s examine an example of how they are calculated. A small office in Blackpool uses 100 cubic meters of water each year (about the same as a small household).

From 1 April 2025, the regional default tariff business rates are calculated as follows:

Example: Annual business water rates for a single small office.

Water standing water charge – £84.27 (Based upon the standard water meter size of 15mm)

Volumetric water charge – £250.86, calculated by multiplying:

• Water consumed – 100 cubic meters (as measured by the water meter)
• Volumetric charge – £2.5086 per cubic meter (default tariff volumetric rate)

Wastewater standing charge – £56.52

Wastewater volumetric charge – £181.94, calculated by multiplying:

• Wastewater returned – 95 cubic meters (Using a 95% return to sewerage allowance)
• Volumetric charge – £1.9152 per cubic meter (default tariff volumetric rate)

Surface water drainage – £133.41 (Based upon the size of a small office)

Highwater drainage charge – £57.18 (Based upon the size of a small office)

Total annual business water rates – £764.18

*The example above used property within the United Utilities wholesale area on the default regional tariff. How business water rates are charged depends on your property’s wholesale region.

Check out our business water rates calculator for an interactive demonstration of the above.

What is Rateable Value (RV)?

Rateable Value is one way that business water suppliers calculate unmeasured water rates. The primary use of Rateable Value is to determine the business rates that each commercial property will need to pay to the local council.

The rateable value can also be used to determine volumetric water and wastewater charges where a property does not have a water meter. In this case, water and wastewater will be charged at a specific unit price per £ rateable value.

Each wholesaler annually publishes how the Rateable Value determines the unmeasured water and wastewater rates.

Business water rates units of measurements

The business water rates a property pays depend upon the following measured inputs that will be used to calculate the amount due in on your water bill:

• Cubic meter (m³) – A measure of the volume of water consumed by a property, as measured by a water meter.
• RSA (%) – The ratio used to calculate the volume of wastewater disposed of based upon the volume of clean water consumed. The RSA is usually between 90 and 100%.
• Surface area (m²) – The area that a business property encompasses, a measure used to calculate the surface drainage charge.
• Meter size (mm) – The width of the clean water pipe entering your water meter. Used to assess standing water charges.

Business Water Rates FAQs

Here are the answers to frequently asked questions on business water prices.

How often do business water rates change?

Once a year. Business water rates change every year on the 1st of April. To view the latest business water rates in your area, you can review our tables above for English business water rates and Scottish business water rates.

How much are business water rates in my region?

Business water rates vary from region to region. The disparity arises because the cost of maintaining the regional water network is higher in certain parts of the country than in others.

As an example, there is less rain in the South West of England, and the region is sparsely populated. Hence, pipes need to travel long distances between reservoirs and properties, making water supply more expensive.

Each regional water network determines its own wholesaler charges. In Scotland, there is only a single wholesaler, Scottish Water. In England, the different regional water networks are:

Water and wastewater regional wholesalers:

• Anglian Water
• Northumbrian Water
• Severn Trent Water
• South West Water
• Southern Water
• Thames Water
• United Utilities Water
• Wessex Water
• Yorkshire Water

Water only wholesalers:

• Affinity Water
• Bristol Water
• Portsmouth Water
• South East Water
• South Staffs Water
• SES Water

What are the regional commercial water rates?

The following rates relate to the 2025/26 standard default non-household tariff in each region:

Source

Some wholesalers use different pricing structures depending on your property’s location within each region. The table above displays a representative tariff for each wholesaler based on a single region.

Where applicable, the charges for the lowest banding of surface and highway drainage have been used.

How much are the average business water rates?

The water rates paid by businesses in Britain depend both on region and the amount of water consumed. 1.2 million English and 0.3 million Scottish properties are registered on the non-household water network.

In 2025, the mean average non-household water rates bill is £2,700 per annum. These average business water rates have increased significantly following price changes in April.

The average figure encompasses millions of small businesses that use only a few cubic meters of water each and the largest industrial users, which spend millions yearly on water.

Do business water rates have VAT?

Most businesses do not pay VAT on water bills. The exception is industries that use large quantities of water as a direct input in their production, the biggest ones being:

• Construction
• Chemical Production
• Food Production
• Mining
• Textile Production

Your business water supplier will automatically assess whether they need to charge your business VAT.

For our in-depth explainer, check out our guide to VAT on business water bills.

Are business water rates cheaper than domestic?

Generally speaking, domestic water rates are cheaper than business water rates because the average household uses less water than the average business. Domestic property water rates are calculated differently from business water rates.

Most homes do not have a water meter installed, so domestic water consumption is assessed rather than measured. Unless you specifically request a water meter for your house, a water supplier will charge your home a fixed cost regardless of how much water you use.

In contrast, most business properties pay water rates based on measurements taken by a water meter.

AquaSwitch completed a one-off study comparing a house and a small business property using the same amount of water. We found that, in this case, a business on the regional out-of-contract tariff will pay an average of 8.7% more than the household.

Can I save money on business water rates?

Yes. The water market for non-households is deregulated so businesses can switch suppliers to cheaper rates. Business water suppliers add a retail fee to the underlying wholesale water rates for customer services.

How does Ofwat regulate business water rates?

Ofwat carefully regulates water rates to avoid the excessive profitability of any of the companies involved in the supply of water and wastewater services.

Firstly the regional wholesale water rates are carefully controlled such a balance is maintained between:

• Ensuring the wholesaler has sufficient incentive to invest in water infrastructure for the future.
• Ensuring both household and non-household water rates fairly reflect the cost of water and wastewater services to the end-user.
• Ensuring that the wholesaler’s return on investment is fair and is not unduly profitable.
• Ensuring that the wholesaler can meet their legal, social and environmental obligations.

Ofwat then further regulates the business water suppliers by providing an annual price cap which sets a maximum retail fee that can be charged to business customers.

For more information, check out our guide to everything you need to know about Ofwat.

Are business water rates determined by postcode?

Yes, the amount a business pays for water rates depends on where your property is located. England is divided into approximately 20 different wholesale regions, each of which has its own company owning and operating the water infrastructure.

The cost of maintaining the water network in each region is different so business rates also vary from region to region. See our handy guide here to the different regional water rates.

Are small business water rates more expensive than large businesses?

In most regions of England and Scotland, wholesale water companies offer large user tariffs for industrial customers. Large user tariffs generally levy a standing water charge in the tens of thousands but offer a lower volumetric water and wastewater rate than the standard tariffs.

The effect of large user tariffs is to provide a bulk-buy discount to those industries that use significant amounts of water in their production.

How much water does a business use?

Business water rates are calculated on a volumetric basis; the more water a property uses, the higher the charges. Volumetric business water rates are measured in price per cubic meter. The following shows how much water properties are typically consumed:

• The average household: 130 cubic meters
• A small shop: 60 cubic meters
• Office building (per employee): 20 cubic meters

However, some industries use a huge amount of water. Check out our blog post on which industries use the most water.