Understanding water rates
Water rates in England & Wales
There are two ways that water companies can calculate your water rates:
Are you unmetered?
This is a set amount that you pay for your water and sewerage service, regardless of how much you use, based on the rateable value (RV) of your home.
Are you metered?
This charges you for the number of units of water you actually use, based on readings taken from a meter.
Water rates in Scotland
There are two ways that Scottish Water can calculate your water rates:
Are you unmetered?
This is based on the council tax band of your property.
Are you metered?
This charges you for the number of units of water you actually use, based on readings taken from a meter.
Water rates in Northern Ireland
In Northern Ireland domestic customers don't pay any water rates at all! Free water and sewerage service are funded from the Northern Ireland budget and water charges made to the non domestic sector. However the Government recently announced plans to consider introducing domestic water rates to Northern Ireland.
Who sets your water rates?
Every five years Ofwat, the water industry regulator, reviews water rates to ensure that firms can continue to deliver their services effectively and meet new obligations. Under the latest Ofwat review, which is the fourth price review since privatisation, water rates will rise by an average 18%. The new pricing levels will be gradually phased in until 2009.
Do water rates differ across the UK?
Yes. In England and Wales water and sewerage rates differ with each water company. These regional differences in water rates depend on water availability and the geographical area of the region - a large water supply region, for example, may charge higher water rates as it has to carry water supplies across a larger area.
Water rates for vulnerable groups
Under the Water Industry (Charges) (Vulnerable Groups) Regulations 1999, particular vulnerable customers in England, such as those with certain medical conditions or those in receipt of benefits, are entitled to special water rates if they have a meter. This vulnerable group’s tariff caps water rates at the average household charge for that area. This scheme is offered on a voluntary basis. To find out more contact your water supplier.
Can you reduce your water bills?
If you are paying a high water rate and use below average water you could save money by switching to a water meter. Use the uSwitch.com water switching service to calculate if switching to a meter will be cheaper or, if you already use a meter, how you can reduce your water consumption and save money.
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