Businesses should expect a large increase in wholesale water costs as of April 2023.
Despite the fact that this increase happens every year, this year’s price increases will be far more than usual, with some areas likely seeing increases of up to 12%.
Your business should take action to mitigate these wholesale water price increases.
How These Increases May Affect Your Business
Every year, the wholesale water price for commercial customers rises typically by 4%.
But this year, depending on your region and tariff type, businesses can notice a significant rise in their water bills.
Why Water Costs Have Significantly Increased This Year
Inflation is at a 40-year high, driven by the energy crisis and other factors.
This implies that the cost of running water companies has increased, as has the cost of installing water infrastructure.
The rate of default water charges that businesses must pay has also risen.
Ofwat revised how they calculated their default price cap, which caused the retail rates charged to increase.
How to Mitigate These Increases
Our specialist water team has compiled three of the best strategies to manage the expected increases, helping your business in lowering its costs and consumption.
1. Review Procurement Alternatives
By switching suppliers, your business could save costs.
Exploring your water procurement options can provide your business with a number of advantages, including reduced water and wastewater costs.
When it comes to buying water, it might be difficult to know where to begin, but our water experts can help you every step of the way.
2. Request a Water Audit
Regular water audits will help you figure out if your business is using the right amount of water.
Our water audits can help you in reducing costs and reclaiming historical overcharges, providing you with a financial infusion to help you deal with these price increases.
3. Regularly Monitor Consumption Levels
Continuous monitoring can help you ensure that your business doesn’t end up paying more than necessary for water.
You can determine if you are wasting water by knowing your typical patterns of water consumption.
We provide usage software which monitors and analyses your average consumption levels, generating automatic alerts if any unusual activity is detected.