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With business water rates set to rise from April 2025, it’s vital that companies across the UK are prepared for the impact of the changes to their water rates and tariffs.
As your water retailer, we want to clarify that our pricing and margins remain unchanged. However, water wholesalers, who own and maintain the water and wastewater infrastructure, are required to implement rate increases set by the regulator, Ofwat. These rates vary by region and reflect the costs of supplying, maintaining and investing in the water network. As a result, businesses across the UK will see an increase in their water bills.
We’re breaking down the latest updates from Ofwat, what these mean for your business, and steps you can take to help reduce your water consumption and increase efficiency, to help combat the effects of these increases.
The UK’s water and sewage regulator, Ofwat, confirmed in December 2024 that business water rates will increase in 2025 as part of a wider strategy to fund essential improvements in the UK’s water infrastructure. The rise in wholesale water prices is driven by:
In his latest blog, Castle Water CEO, John Reynolds, advised customers that water increases are expected annually until 2030, and that customers should take active steps to monitor and manage water consumption to help mitigate the impact of these pricing increases.
According to Ofwat’s latest determinations, the following increases are expected from April 2025:
|
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%
|
|
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%
|
Data provided by Water.org, Discover Water and Ofwat.
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 therefore important for business owners to shop around to find the best possible rate for their water before the pricing increase in April. You can receive a quote for business water from Castle Water by entering your SPID and address here.
To protect businesses that remain on default tariffs, Ofwat have 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. To find out more about the business water pricing caps, click here.
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:
You may be tempted to switch to the water retailer that’s offering the cheapest rates, but considering additional services, customer satisfaction and brand reputation can help avoid problems further down the line.Â
Castle Water were named MOSL’s highest performing water retailer for metering in 2024, taking large measures to improve inefficiencies and poor performance in the industry. By employing our own team of meter readers, instead of opting for third party contractors as is the industry standard, we have transformed the landscape of what metering can look like for our customers. Our highly trained meter readers can help detect leaks early, make recommendations to help reduce your water consumption and usage, and assist with complex metering queries and requests.
We’re also big on customer satisfaction, and are proud to over 24,000 reviews on Trustpilot, with more 5-star reviews than all other water retailers combined. Our UK based customer service team are on hand to assist with any queries or requests, and our industry leading customer portal provides you with access to our webchat service where you can talk to our advisors directly, as well as access to a library of Help and Support articles for you to explore.
It’s important to compare water suppliers to find out which best suits you and your businesses needs.
A water wholesaler owns and maintains the water and wastewater infrastructure, supplying water to businesses and homes. A water retailer, on the other hand, buys water from wholesalers and manages customer accounts, billing, and customer service, providing businesses with competitive pricing and support.
Ofwat is increasing rates from April 2025 to fund essential upgrades, including supply resilience, sewage treatment improvements, and smart metering.
Businesses can cut costs by switching suppliers, conducting water audits, installing smart meters, and monitoring monthly usage to detect leaks.
Yes, since 2017, businesses in England can switch water retailers to find better rates and services. Many still pay default tariffs, so switching could save money.
You can request a quote by entering your SPID and address on Castle Water’s website.
Castle Water has nearly 20,000 5-star Trustpilot reviews, UK-based customer service, and employs its own meter readers for better accuracy and service.
