How are business water rates calculated in the UK?

3 June 2025

Business water rates in the UK are calculated based on a few key factors:

your location
the size and type of your premises
how much water your business uses

Rates are typically broken down into two main parts: water supply charges and wastewater (or sewerage) charges.

If your property is metered, you’ll be charged based on actual consumption, measured in cubic metres. This is the most common setup and ensures you only pay for what you use.

Unmetered businesses (rare, but still possible) are usually billed based on a fixed rate tied to the property’s rateable value.

In addition to water usage, wastewater charges often include a standing charge and a volumetric charge based on how much water is estimated to return to the sewer. Some businesses with high water discharge levels may also pay trade effluent charges, depending on what enters the public sewer system.

By understanding these components, you can spot billing anomalies, estimate your expected costs more accurately, and make informed decisions when comparing suppliers.