By Josh Gill, CEO and Founder ofEverflow
The rising cost-of-living isn’t just a crisis facing consumers. Businesses across the country are also feeling the pinch whether it’s from the increasing utility bills, soaring fuel costs, wage growth, inflationary pressures or a mix of all of the above. As a result, UK firms of all sizes are rightly re-assessing their finances on the hunt for cost-saving measures.
When it comes to savings, utility bills are often one of the first expenses scrutinised. Especially, given the recent, much publicised hike in electricity and gas bills. By contrast, far less attention has been paid to the costs of water supply. Perhaps understandably since water accounts for a far smaller proportion of the overall cost of utilities.
But savings on water are more than just a drop in the ocean for businesses facing the cost-of-living crisis. And they’ve taken on even greater importance in the current climate, at a time when the purse strings have rarely been tighter and given that wholesale water and retail water default rates have risen in recent months.
So how can businesses save on water bills?
Switching
Until recently, businesses weren’t afforded the luxury of choosing their water supplier to save costs due to regulation mandating the exclusive use of local water suppliers. This all changed in 2017, when deregulation opened England’s business water market for competition, creating the world’s largest competitive water and wastewater retail market.
Since then, businesses have been incentivised to switch providers or renegotiate their existing deal, as the new market competition has driven providers to offer increasingly attractive rates. This has raised the prospect of marginal gains on water rates for savvy business leaders and CFOs to capitalise upon. For example, based on an average spend of £2,000 per annum on water and wastewater, SMEs can save an average of over £500 per year by switching to Everflow.
Although there appears to be a positive, upward trend in awareness among businesses of the benefits of switching providers and how to do so, there is still progress to be made. The water market falls well below other utility markets in terms of customers switching, with Ofwat’s State of the Market report finding that only 9% of all customers in the water market had been active in the prior 12-months. And almost half of businesses remain unaware that they can shop around and choose their water supplier.
For businesses interested to know more but unsure how to switch or even where to start, brokers play a crucial role in providing UK businesses with the insights and advice needed to understand this new marketplace and find the best deals for their business. Additionally, businesses can also view our instant quoting tool which provides a quote in minutes.
Bill management
Managing your bills is an important step to becoming aware of your outgoings on water and how much you can be saving. In particular, staying on top of your invoices will keep you up to date on the period you’re being charged for and help you plan effectively for any adjustments in prices which occur every April, when wholesalers increase your charges.
As well as reading your invoices, another way to manage your bills will be to read your water meter regularly. We recommend checking around every six months. This will ensure you avoid adjustments if your usage changes over time and keeps your bills as accurate as possible. Additionally, it can help you to spot any leaks or problems. Only when businesses are fully aware of their usage, as they are with their electric and gas usage, will they be able to identify problems and address the issue.
Efficiencies
Possibly the most obvious way to save money on water bills is to use less water. Measures to create efficiencies in your water usage can support while having the added benefit of contributing positively towards your sustainability goals. However the solutions aren’t always as straightforward as you might think.
There are a range of solutions to managing and reducing your water bills. Businesses that are able to do so successfully can make significant, long-term savings, gain an edge over their competitors and boost their sustainability credentials. Amid such a challenging economic landscape, there has never been a better time for businesses to act on their water bills.
A water supplier is a company that provides water services to businesses and households, including sourcing, treating, and delivering water.
Utility bill management involves tracking and analyzing utility expenses to identify savings opportunities and ensure accurate billing.
Water efficiency measures are strategies and technologies implemented to reduce water consumption and waste, helping businesses save money and promote sustainability.
Deregulation in the water market refers to the removal of restrictions that previously limited businesses to a single water supplier, allowing them to choose from multiple providers.
The cost-of-living crisis refers to a situation where rising prices, particularly for essentials like utilities and food, strain household and business budgets.
Explore more articles in the Top Stories category
