It depends on what your business does. Water supplied to most businesses is zero-rated, but VAT at 20% applies if your main activity falls within what HMRC defines as a "relevant industrial activity", which is based on the 1980 Standard Industrial Classification. Your retailer relies on your SIC code to decide, so it's worth making sure it's correct.

If you'd like help with any of this, from comparing retailers to checking whether you've been overcharged, get in touch and we'll take a look. To find out more, you can read our latest guide: What is the VAT rate on business water bills?

If you have a meter, your bill is made up of a standing charge, which varies with the size of the meter, a volumetric charge for the potable water you use, and a wastewater charge based on how much of that water is assumed to return to the sewer, usually set at 95% of water consumed. There may also be separate charges for surface water drainage and a retail fee. If you're unmetered, your bill is a fixed charge plus a charge based on your property's rateable value.

Often, yes. Where you've been charged in error, for example because of an incorrect rateable value, a meter error, or a surface water drainage charge that doesn't apply to your site, you may be able to claim back overpayments for up to six years in some cases. The period depends on the type of error and your wholesaler, and you'll need evidence to support the claim. We can review your bills to check.

On a metered supply, the more water you use, the more you pay in volumetric charges, and your wastewater charge usually follows your usage too. The size of your meter also affects your standing charge. If your supply is unmetered, your bill doesn't follow your usage at all, as it's based on the rateable value of the property.

Water lost on your side of the meter is still metered and billed, so a leak can push a bill up quickly. If you find and repair one, you may be able to claim a leak allowance through your retailer. It should be noted that unless the leak is on the meter, only the sewerage element of the leaked water can be claimed for. Most wholesalers have time limits for claims so it pays to act fast and speak to your retailer promptly. Further to this, claims cannot be made for negligence or where the leak occurred on private pipework but we can help with this process if necessary.

In England, Ofwat is the regulator and licenses the retailers, MOSL runs the market and handles the transfer of customer information when you switch, and CCW is the independent body that offers free advice and helps resolve complaints. Scotland has its own market regulated by the Water Industry Commission for Scotland.

Yes. In England, charities can switch water retailer in the same way as other eligible non-household customers, provided their premises are used mainly for non-domestic purposes and are rated as such.

Yes. Businesses with several premises can often move them all to one retailer, which can mean a single account, a single invoice, and one point of contact. It also makes it easier to spot unusual usage or billing errors across the portfolio.

It's always a good idea to keep an eye on the market but as the wholesale rates are set by the wholesaler and the retail element is not subject to market fluctuations, it's usually fine to check a few months ahead of your contract end date. What's more important is to ensure you have performed a thorough check of the available suppliers before going ahead with a new contract.

It depends on your contract. If you're in the middle of a fixed term, check the terms for notice periods and early exit charges before you move. If your contract has ended and you're on a default rate, there's usually nothing tying you in, but this is something we check for our clients as part of every comparison.

Your most recent bill, your current contract end date, details of any notice period, and a recent meter reading are the main things. If you have recently occupied a premises or don't have a bill to hand, your supply details can be found on an industry database so don't worry too much if not.

No. Switching only changes the retailer who bills you and manages your account. The same regional wholesaler keeps delivering your water and treating your wastewater, and there are no engineer visits or physical changes involved.

Switching supplier usually takes around four weeks, though it can vary depending on the retailer. This means it is important to plan ahead and start the process at least a month ahead of your contract end date if possible.

Domestic and business water supply differ in regulation, pricing, and flexibility. Households must use their regional supplier, while most businesses in England can switch. Business water is billed based on actual usage and service needs, with more flexible contracts and potential savings through supplier choice. 

Learn more about the differences between business and domestic water

Yes, businesses in England can switch water suppliers thanks to the deregulated Open Water Market. This allows eligible businesses, charities and public sector organisations to choose their water retailer based on price, service, or billing preferences. Wholesalers still supply the water, while retailers handle billing and support.

If you're in Wales, switching is only possible if your business uses over 50 megalitres of water per year. To switch, you'll typically need a recent water bill, your SPID, and usage details.

Clear Utility Solutions can help you compare suppliers and manage the switch from start to finish.

There are many simple ways for businesses to reduce water bills. Start by monitoring your meter for leaks or spikes, fix any faulty equipment promptly, and install water-efficient fixtures. Encouraging staff to use water wisely also helps. For high-usage sites, consider greywater or rainwater reuse systems. If your usage is efficient but costs remain high, reviewing your supplier or tariff may lead to savings.

Business water rates are based on your location, property type, and how much water you use. Most businesses are metered and pay for actual usage, while unmetered sites are billed using a fixed rate. Charges cover water supply and wastewater, and some businesses may also pay trade effluent fees. 

For more information, check our full business water rates guide