Are you wondering how UK water businesses identify their commercial customers’ water and sewerage prices? The article examines the various strategies used for household as well as non-domestic clients, along with small, medium, as well as large water users.
It discusses the function of the UK’s water sector regulator, Ofwat, in ensuring fairness before evaluating the various charge tariffs employed by water providers in its final section.
Explaining business water and sewage charges
All water companies in the UK have unique methods for billing non-household clients (businesses) for their water and sewage services. The fees are determined by the amount of potable water utilized as well as the volume of trade effluent as well as wastewater generated by the company.
How are water costs calculated for businesses?
Businesses that are not residential but have water meters placed must pay a standing fee based on the size of the meter as well as a fixed fee per cubic meter of water consumed. The cost per unit of water consumed is the same for home users and the majority of small businesses.
Water business rates without water and meters are computed similarly to domestic customers without meters. The standing fee for the mains connection is still applicable; however, the remaining portion of the bill will be set and determined based on the rateable worth of the property. This includes the price of billing as well as customer service.
How are water bills for large and medium-sized business clients calculated?
Instead of only paying the normal rate, most enterprises that use more water than expected have the option to request a bigger or intermediate tariff. Many tariff structures may offer a cheaper rate for usage exceeding a certain threshold or a reduction in a fixed charge.
Tariffs are also created to attempt to promote reducing water use. It is worth mentioning that you should always ask your water provider about their prices for larger customers, as each water company operates differently.
The operation of seasonal tariffs
Businesses that have significant seasonal fluctuations in their water usage may want to think about a seasonal rate.
The price of a unit of water is higher under these seasonal tariffs in the summer when the weather is dryer than it is in the winter when the weather is wetter.
You need to note that only businesses that currently have a meter as well as frequently have it read may be eligible for this type of tariff.
Are subscribed demand tariffs more affordable for companies?
Businesses that can estimate their water usage with precision, even during peak periods, should use the subscription demand tariff method of billing.
To take advantage of this form of subscription demand pricing, you must predict peak demand precisely before the beginning of your billing year. A subscribed demand tariff includes the following:
• Annual maximum
Based on maximum demand, the annual maximum demand charge is represented in pounds per megaliter per day.
• Usage rate
Usage rate in pennies per cubic meter. You will be billed this sum for any water you consume up to your maximum daily demand.
• Penalty rate
Penalty amount in pence per cubic meter. This is the price you will pay if you use more water than you were supposed to if you overestimate how much you consume.
I hope this article has helped you understand how business water is calculated so it will be easier for you to calculate as well, depending on the size of your business and how much water you consume.