Has your business renewed it’s water contract yet? Set to take effect on 1 April 2025, businesses in England should prepare for significant water and wastewater charges increases. These changes stem from Ofwat’s draft predictions for the next five-year period and the indicative wholesale water changes published by regional wholesalers. Here’s what you need to know about the upcoming water increases, why they are happening, and how they may impact you.
Why Are Prices Increasing?
In July 2024, Ofwat outlined the largest investment programme since the privatisation of the water industry. The objectives include:
- Reducing pollution and improving water quality.
- Enhancing climate resilience and adapting to climate change.
- Progressing toward net-zero emissions.
- To support these goals, the price control period (2025-30) will require greater investment. This will lead to higher than usual price increases compared to previous years.
Indicative Price Increases by Region
In October, wholesalers shared projections for the 2025/26 financial year. The weighted average price increases vary by region and service:
The final wholesale charges will be confirmed once Ofwat publishes its final determinations which is expected by the end of January.
Supporting Businesses
These investments aim for long-term improvements, but the expected water increases will add cost pressures on businesses. We recommend speaking to an expert if your renewal is due near April. If you need help navigating these costs, get in touch with our team!
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For more information on water for businesses, check out these websites:
