Business water bills can contain more than water consumption. Understand the different services and charging elements that may affect your organisation.
A water bill may cover more than the water used
It can be tempting to think of a business water bill as a simple calculation:
Water used multiplied by a price.
In practice, non-household water and wastewater charges may contain several separate elements. The precise structure will depend on the premises, services received, meter arrangements, retailer and relevant charging structure.
Government guidance confirms that businesses may be charged for water use, drainage and effluent from their premises. A metered business may be charged for the measured water used together with a set charge. Read the government guidance on business water and sewerage charges. [gov.uk]
Common elements of a business water bill
Water supply
This is the water supplied to the premises.
Where a meter is used, the charge will generally be influenced by the recorded or estimated volume of water passing through it. The bill may show the previous reading, current reading, volume charged and whether the readings are actual or estimated.
Wastewater services
Wastewater charges relate to used water being removed and treated.
The volume used for wastewater charging may be connected to the volume of water supplied, but the assumptions and charging arrangements should be understood rather than taken for granted. Different business processes may qualify for an allowance or alternative method of charge.
Surface water drainage
Surface water drainage concerns rainwater draining from roofs, yards, car parks and other parts of a property into the public sewer network.
The way this service is charged can vary. It may be influenced by factors such as property characteristics, site area or another charging basis applicable to the premises.
Highway drainage
Highway drainage contributes towards the costs associated with rainwater draining from public roads into the sewer network.
Where applicable, it may appear as a separate charge or form part of the relevant sewerage charging arrangements.
Trade effluent
Trade effluent is wastewater discharged from business or industrial processes, rather than ordinary domestic-type sewage.
It can be particularly relevant to manufacturing, food production, processing and other operational sites. Its composition and volume may influence the applicable arrangements and charges.
Standing and fixed charges
A bill may contain fixed or standing charges that do not vary directly with the volume of water used.
These can relate to the account, meter, service or charging structure. They should be considered alongside consumption charges when assessing the total cost.
Retail charges
In England’s non-household retail market, retailers buy wholesale water and wastewater services, package them and sell them to eligible customers. Market information such as meter reads, tariffs and customer data is used within the arrangements that support settlement and customer billing. Learn how the English non-household market works. [mosl.co.uk]
The bill may therefore include retail charges or margins alongside the underlying wholesale services.
Why the detail matters
Understanding the description of a charge is useful, but it is only the starting point.
An organisation should also consider:
Does the bill relate to the correct premises?
Are the meter details consistent with the physical site?
Are readings actual or estimated?
Do the billed services reflect the services received?
Have property or operational changes been reflected?
Can unusual changes in consumption be explained?
Are all accounts and meters recognised by the organisation?
A clearly presented bill can help a customer understand what has been invoiced. It does not, by itself, confirm that every item accurately reflects the circumstances of the site.
Processing a bill is not the same as reviewing it
Most organisations have procedures for receiving, approving and paying invoices.
Fewer have a process for independently examining whether the underlying water and wastewater information remains consistent with the premises and its operations. This distinction has already formed part of WTR Utilities’ problem awareness messaging. Discussion about auditing water bills highlights how properties, operations and records can change even while invoices continue to arrive and be paid.
How WTR Utilities can help
WTR Utilities independently examines available bills, account information, meter records, consumption data and relevant site information.
Our purpose is not simply to restate what appears on the invoice. It is to help establish how the charges were produced and whether the available evidence supports them.
If parts of your business water bill remain unclear, contact WTR Utilities to discuss whether an independent review may be appropriate.
Important information: This article provides general information about non-household water and wastewater arrangements. Individual accounts, properties and charging arrangements vary. The content should not be treated as confirmation that any particular charge is correct or incorrect, or as legal advice on a lease or property agreement.