How Will the Water Sector Review Affect Your Business?
A landmark review has recommended 88 changes to how the water industry operates in England and Wales.
The review claims the water market requires fundamental reform including a new water regulator. Here, we take a look at how the review could affect business water services and your bills.
What Does a New Water Regulator Mean for My Business?
In England, we currently have various bodies responsible for water regulation. This includes Ofwat, the Drinking Water Inspectorate, and the Environment Agency and Natural England.
The report has recommended a ‘reset’ of the water sector which would see one new regulator responsible for the water market in England. This would see Ofwat scrapped and replaced by the new regulator.
The goal is to offer the new regulator greater powers “stand firmly on the side of customers, investors, and the environment”.
Due to the time it takes to establish a new regulator, we are unlikely to see the impact of this change for a number of years.
Will Business Water Bills Increase?
Water bills are still expected to increase in the coming years according to the water review.
Businesses have already seen an increase in their water bills between 2024/25 and 2025/26. This came after efforts to keep bills low by the government and the regulator in previous years.
The leader of the review, Sir John Cunliffe, noted that this “can now be seen as underinvestment” and “is really what has driven those huge bill increases we have seen”.
The review has stressed the need to avoid sharp increases in the future. Despite this, the cost of producing water is expected to rise in the coming years.
Could Smart Meters Become Compulsory?
Smart water meters could become compulsory with the aim of reducing water consumption.
As with the energy sector, the review has recommended that suppliers must install a smart meter if they are replacing a meter or installing one for the first time.
Although the review has focused on compulsory smart meters in homes, it is likely that this would come with a push to install more meters in commercial premises. Installing a smart water meter could allow businesses to track water usage and find identify areas of potential waste with a business water audit.
Will a Mandatory Water Ombudsman Protect Businesses?
Currently, the Consumer Council for Water (CCW) runs a voluntary ombudsman providing impartial advice to homeowners and businesses.
The government has already announced that it will adopt the recommendation to upgrade the CCW to a fully fledged ombudsman. This change would give a clearer route to resolving any complaints with your water provider.
It will become mandatory for water suppliers to follow the new ombudsman’s rulings, much like other utilities including energy.
Can I Still Switch Business Water?
Businesses are still able to compare prices and switch their water provider. Despite this, many businesses are still yet to take advantage of the opportunity to switch.
At British Business Energy, we make the process of switching your business water simple. You can compare prices from our trusted providers to find a deal that suits your needs.