Water Price Increases 2026/27: What UK Businesses Must Do

Water Price Increases 2026/27: What UK Businesses Need to Know – And How to Reduce the Impact

Every five years, water pricing is reset in England and Wales through Ofwat’s Price Review process. The current review (PR24) approved record levels of infrastructure investment, driving increases from April 2025 and further changes from April 2026.

In Scotland, pricing is overseen by the Water Industry Commission for Scotland (WICS) through its Strategic Review of Charges, with the current regulatory period running 2021–2027.

The headline message for 2026/27 is clear: wholesale charges are rising in most regions and in some cases significantly. But businesses are not powerless. Consumption remains one of the few controllable variables in your bill.

Why Are Water Bills Increasing?

Wholesale water companies are under growing pressure to:

• Upgrade ageing infrastructure

• Reduce pollution incidents

• Improve resilience against drought

• Deliver against environmental and sustainability targets

That investment is funded through customer charges.

Your water bill has two parts:

Wholesale charge – Set by the regional water company and approved by Ofwat. This funds infrastructure, treatment and networks.
Retail charge – A smaller uplift covering billing, meter reads, customer support and account management.

Wholesale is the dominant cost and where most of the 2026/27 increases sit.

2026/27 Confirmed Wholesale Increases (England & Wales)

Below is a centralised summary of confirmed 2026/27 wholesale increases for dual supply customers, based on final published data.

Note: Individual tariffs within each region may see higher or lower movements depending on usage band and supply type.

Trade Effluent: Often Higher Increases

Businesses discharging trade effluent are seeing sharper increases in many regions.

Examples of 2026/27 final increases

• Anglian Water: 12% – 14%

• Northumbrian (Mogden): 17%

• United Utilities: 11%

• Thames Water: -5% (reduction)

• South West Water: 15%

• Wessex Water: 8% – 11%

For manufacturing, food processing, healthcare and industrial sites, this can materially impact operating costs.

The Strategic Risk for Businesses

Water rarely receives board-level attention until:

• A large backdated bill lands

• A leak runs unnoticed

• Capacity bands shift

• Trade effluent charges spike

Yet non-household customers account for around 40% of water use across England. Most sites use more water than operationally necessary. With increases of 10–30% in some areas, water efficiency is no longer optional it is cost control.

Turning Price Increases into Opportunity

There are three practical levers businesses can control:

1. Data Visibility

• Take regular meter readings

• Install Automated Meter Readers (AMRs)

• Monitor continuous flow alerts

• Identify consumption spikes early

2. Leak Detection & Infrastructure Review

• Check for overnight flows

• Review pipework, toilets, taps and washdown systems

• Assess pressure settings

• Review trade effluent strength and discharge volumes

3. Behaviour & Device Efficiency

• Install low-flow taps and aerators

• Fit sensor taps where appropriate

• Upgrade spray nozzles and wash systems

• Run staff awareness campaigns

The cheapest unit of water is the one you don’t use.

Download: Workplace Water Efficiency Toolkit

To support businesses facing 2026/27 increases, we’ve developed a practical Workplace Water Efficiency Toolkit.

It includes:

• A step-by-step water audit template

• Meter reading log sheet

• Leak detection checklist

• Trade effluent review checklist

• Staff awareness posters

• Internal presentation slides

• Social media assets for internal campaigns

• Cost savings estimator worksheet

You can download the full toolkit below.

Final Takeaways

• Wholesale increases for 2026/27 are confirmed and in many regions remain significant.

• Trade effluent charges may rise more sharply than standard sewerage charges.

• Monitoring and reducing water consumption is the most direct way to offset cost increases.

• A structured water audit often identifies 5–15% savings on most sites.

Water is moving from a background utility to a managed cost centre. Businesses that treat it strategically will reduce both spend and environmental risk.