If you run a business in the UK, understanding your business water contract can help you cut costs, stay compliant, and make environmentally responsible decisions. Since the deregulation of the water market in England in 2017, businesses have been able to choose their water supplier, but many still don’t take full advantage of this freedom.
This guide breaks down what you need to know about business water contracts and how your company can benefit.
What is a business water contract?
A business water contract is an agreement between your company and a licensed water retailer. It covers:
- Water supply: The clean water your business uses.
- Wastewater services: How used water is removed and treated.
- Billing terms: Pricing, payment schedules, and charges.
Unlike domestic water supply, business water services are open to competition in England and Scotland.
How the UK business water market works
The water market in England and Scotland allows businesses, charities, and public sector organisations to choose from a range of licensed water retailers. These retailers buy water wholesale from regional suppliers and sell it to businesses.
Key players include:
- Castle Water
- Ever flow Water
- Wave
- Water Plus
- Business Stream
These retailers offer different service levels, prices, and account management options.
Why switch water suppliers?
Many businesses stay on default tariffs without realising they could:
- Save money – You could be paying more for your water contract than you realise. Make sure you are comparing prices the same way you would with other utilities to take advantage of savings.
- Get better customer service – If you are not happy with the current services from your water supplier, then switch to a supplier that suits your business needs.
- Consolidate bills across multiple sites – Get one easy to manage contracts for all sites. This will make it easier to spot higher usages and costs.
- Access tailored business packages – By switching water suppliers, you could be offered bespoke water quotes that are built for your business’s needs.
What to look for in a business water contract
Before signing a new deal, compare:
- Unit price per cubic metre (m³) – This is based on the mount of water that is used.
- Fixed monthly/annual charges – Like with energy bills, you will have a fixed standing charge on your water bills that stays the same throughout your contract.
- Length of contract – This will be how long you contract will last for. Locking in lower prices for a longer time can be more advantageous.
- Early exit or renewal terms – When your contract is coming to an end there will be certain windows to renew or end your contract to enter another one.
- Customer support – Before you make a decision look at what other customers are saying about working with a particular water supplier.
How to switch business water supplier
Switching is straightforward and typically takes 15–30 days.
- Check your current contract – Look for the end date or auto-renewal terms.
- Compare quotes – Use a broker or comparison site.
- Choose a new supplier – Based on price and service.
- Authorise the switch – Your new supplier handles the transfer.
- Provide meter readings – To finalise your last bill.
You won’t experience any interruption in your water supply, only the retailer changes.
Common pitfalls to avoid
- Auto-renewing without reviewing your options
- Paying estimated bills without regular meter checks
- Overpaying due to outdated tariff structures
- Assuming you can’t switch if you rent a premises
How water contracts differ for SMEs vs large businesses
- SMEs: Often benefit from simple, competitive tariffs and digital billing.
- Large multi-site businesses: Can negotiate bespoke rates, water audits, and consolidated billing.
If you're managing water for multiple locations, consider a supplier with strong account management and centralised services.
Sustainability and your water contract
More suppliers now offer green initiatives, such as:
- Smart metering
- Leak detection
- Water efficiency audits
- Greywater reuse systems
Choosing a supplier aligned with your CSR or Net Zero goals can be a win for both the planet and your brand.
Final tips
- Review your contract annually
- Keep track of meter readings
- Negotiate proactively before auto-renewal
- Use a reputable broker if you're unsure
If you're ready to improve your energy efficiency whilst driving down energy bills then why not get in touch? With our carbon management plans we will give your business everything it needs to reduce consumption and maximise on savings. . Request a free quote now and start reducing your carbon footprint and energy bills today.
