More than 2.2m businesses in the UK have yet to switch water suppliers, leading to over £300M in savings being left unclaimed.
New data from Everflow Water, a business water supplier working in partnership with energy and business water retailer Love Energy Savings, has shown that 2,223,902 UK-based companies are yet to switch their water supplier, missing out on a mammoth annual saving of £333,585,300.
The data shared with Love Energy savings found that switching water suppliers can save businesses an average of £150 per year, and even though the water market was deregulated in April 2017, following the success of the deregulation in Scotland – many companies are yet to take the plunge.
On average, small businesses spend up to £1K per year on water, with the cost rising to almost £7.5K for medium-sized businesses. In fact, over 50% of British companies are estimated to waste money on their water bills, with waste water costing businesses up to £3.5B each year. Considering businesses account for around 25% of the UK’s total water usage, it’s vital to find water efficiencies and make savings where possible.
Business failures, compounded by the onset of the COVID-19 pandemic, have led to mounting debt owed to water suppliers. Due to this Ofwat has given the green light for suppliers to temporarily increase water bills for thousands of businesses in the UK.
Water companies have seen bad debt across the market reach more than 2% of their non-domestic revenue since coronavirus, which they will now be able to claim back through bill-payers pockets. Although the average amount water bills are set to be increased by is yet to be confirmed, higher water bills are expected to last for a minimum of two years.
One way to combat this is to invest in a water audit – some suppliers even offer them for free if business owners switch. Water audits are a valuable tool for any company that wants to determine how and why they are wasting water as they involve an intensive review of water bills, infrastructure, use, supply, and drainage.
Audits can help to avoid overcharging and estimated bills by suppliers, whilst improving overall management of water supply and reducing water charges.
Love Energy Savings had this to say:
“The recent announcement from Ofwat regarding the increase in water bills for British businesses demonstrates the need, now more than ever, for companies to switch suppliers and focus on tackling their overuse of water.
“We’ve found that our water customers save an average of £150 annually on their utilities, and with more than 25 water retailers in the UK to choose from, businesses have the option to switch to a new supplier, saving themselves hundreds of pounds per year.”