Understanding The Water Market

June 23, 2026 by Energy Consultant

Every business needs water. It powers sanitation and hygiene, keeps your employees hydrated and the kettle full.

Yet supplying your business with water costs money. Now that the water market is open for business, you can shop around for the best deal on your water.

The open water market allows UK businesses, charities, and public sector organisations in England and Scotland to choose their water retailer, rather than being tied to a single regional provider. The market was deregulated in England in April 2017, regulated by Ofwat, and gives over 1.2 million eligible organisations the ability to compare suppliers and switch. Only the retail element of your bill is affected the physical water supply and network infrastructure remain the same, managed by your regional wholesaler.

Here at Tariff.com, we’ve made it our mission to help businesses get the most from their utilities, including water. If you’re looking to explore the open water market, this is the guide is for you. We’ve pulled together everything you need to know about the open water market.

Let’s take a closer look at the water market and how your business could save money on your water utility bills.

 

What is the open water market?

For a long time, businesses were not able to choose who provided their water and wastewater services. While the water sector was privatised in the 80s, they were restricted to getting their water supply from their regional monopoly. In 2017, the English water market was officially deregulated and became open to competition.

Now, over 1.2 million businesses, charities and public sector organisations in England and Scotland can choose where they get their water from. This allows water providers to compete with one another and passes on benefits to businesses and consumers. As the open water market is only for businesses and organisations, non-eligible and households customers will continue to be serviced by their regional providers.

 

How does the open water market work?

Now the commercial water market is open to competition, the water market works just like any other utility market like electricity and gas. The retail water suppliers purchase a wholesale service such as supplying water or removing wastewater and then pass on packages to businesses, charities and organisations looking for a water service.

With a range of suppliers that customers can choose from, the retail providers will have to compete with one another to win customers and new business. In theory, this will result in increased benefits for customers (See “What are the benefits of the open water market for businesses?” for more information).

 

Who Are The Licensed Water Retailers?

Below is a list of licensed business water suppliers currently serving businesses in England and Scotland.

*Please note: retailer availability varies by region. Contact Tariff.com to find out which suppliers are available in your area.

 

Supplier	Retailing In
ADSM	England
Aimera	Scotland
Bluewater	Scotland
Brightwater	Scotland
Business Stream	England, Scotland
Castle Water	England, Scotland
Clear Business Water	England, Scotland
Commercial Water Solutions	Scotland
ConservAqua	England
Everflow Water	England, Scotland
First Business Water	England
Intelligent Business Water	Scotland
Olympos Water	England
Pinnacle Business Water	Scotland
SES Business Water	England, Scotland
Smarta Water	England
Source for Business	England, Scotland
SSWB	Scotland
The Water Retail Company	England, Scotland
Veolia	England, Scotland
Water 2 Business	England, Scotland
Waterscan	England
Wave	England, Scotland
WaterPlus	England, Scotland
Yu Water	England

 

Is the Water Market Regulated?

Much like the energy market, the water sector is monitored by a regulatory authority, in this case, Ofwat. Ofwat stands for Office of Water Services and is the non-ministerial government department responsible for the regulation of the water and sewerage industry in England and Wales. Founded in 1989, Ofwat strives to deliver value for money to consumers, as well as plan for the changing demands and challenges of water provision.

In Scotland, the water market is regulated by the Water Industry Commission for Scotland (WICS) and operated by the Central Market Agency (CMA).

 

How Many Water Suppliers Are There?

In the UK and Scotland, there are 29 licensed water retailers. Whether you’re a business, charity, or public sector organisation, you can shop around to find the best prices, deals and customer service.

 

How is the Water Market Different in Wales?

The water market in Wales is different to England and Scotland. In Wales, only customer sites using more than 50 megalitres of water a year can switch suppliers, and this is only on clean water services. For more information about the Welsh Water Market, visit the Welsh Water website here.

 

What is a Water Audit?

A water audit compares what you’ve been charged with the volume of water you use. This can help to spot any inconsistencies in your water bills, as well as highlight areas where you could reduce water consumption and the associated cost.

Water audits will also check that you’re on the correct banding for your surface water, sewerage and drainage charges, which differentiate based on things like land size and property type. Audits can also ensure that you’re paying the right amount of taxes (incl. VAT) for your type of organisation.

Businesses that carry out a water audit can in some cases see significant reductions in their water bills, and may discover past overcharges which can be claimed back from their supplier. Savings vary depending on your sector, usage, and current billing arrangements

What is a Water Usage Survey?

A water usage survey details how much water your business property or site uses. To do this, your supplier will need to analyse your bills, as well as ask you specific questions about your business and industry.

This could include things like staff levels, the number of toilets and any other facilities that use water. Carrying out a survey will help to give an in-depth report about water usage across your business.

 

What Are the Benefits of the Open Water Market?

Now you know what the open water market is, let’s take a closer look at the benefits it could bring to your business.

Lower charges and bills

Depending on your current contract and usage, switching can result in a reduction in your water bills, some businesses save between 5–10% by moving to a more competitive retailer.

Better customer service

In order to win new customers, water suppliers not only need to offer lower prices but also better customer service.

Improved value for money

Water retailers will be looking to provide USPs to attract new customers. This could include things like water efficiency services.

Less admin for you

If your business has multiple properties, your supplier could help you manage the administrative side by consolidating your bills.

 

Are you looking to switch water suppliers?

If you’re looking to get a better deal on your water bills, get in touch with the Tariff.com team today. Our consultants will analyse your water bills to see if you could be getting a better deal elsewhere. If you choose to make the switch, we’ll help switch you over to your new supplier. The result? Cheaper water for your business without the hassle of comparing and switching.

 

Why should I choose Tariff.com

Whether you’re looking to save money on your water bills or start your net-zero journey, you should choose Tariff.com as your trusted partner and consultant. Here’s why we think you should choose us.

We Help Businesses Act Plan and Change

Whatever your business goals, whether you’re looking to reduce your carbon emissions or take control of your business bills, we can help your business act, plan, and change for a better future.

Our Consultants Are Here for You

We understand that running a business is no easy feat. That’s why our team are here to take care of your energy and carbon emissions on your behalf. We take the stress out of managing your utilities.

We Recommend Green Solutions

At Tariff.com, we’re dedicated to helping both businesses and our planet. Where possible, we’ll always offer your business a sustainable solution on your energy and utilities. You can then decide if going green is right for you.

 

Frequently Asked Questions

What Is The Open Water Market?

The open water market is the competitive retail market for water and wastewater services in England and Scotland. Since deregulation in April 2017, businesses, charities, and public sector organisations can choose their water retailer rather than being automatically served by their regional monopoly supplier. Over 1.2 million organisations are eligible to switch.

When Was The UK Water Market Deregulated?

The business water market in England was officially deregulated in April 2017, allowing commercial customers to choose their water retailer for the first time. Scotland opened its market earlier, in 2008. Wales and Northern Ireland remain regulated markets for most businesses in Wales, only sites using more than 50 megalitres per year can switch.

Who Regulates The Water Market In The UK?

In England and Wales, the water market is regulated by Ofwat , the Office of Water Services a non-ministerial government department established in 1989. In Scotland, the market is regulated by the Water Industry Commission for Scotland (WICS) and operated through the Central Market Agency.

What Is The Difference Between A Water Wholesaler And A Water Retailer?

A water wholesaler owns and maintains the physical pipe network that delivers clean water and removes wastewater from your premises. A retailer buys wholesale water services and sells them to your business, handling billing, customer service, and meter reading. You can switch retailers freely in England and Scotland, your wholesaler is fixed by your geographic location and does not change.

Who Is Eligible To Switch Water Supplier?

Any business, charity, or public sector organisation based in England or Scotland is eligible to switch water retailer, provided they are not currently locked into a fixed-term contract with exit penalties. Domestic households are not eligible, the open water market is commercial only. Businesses in Wales can only switch if they use more than 50 megalitres of water per year.

What Is A Water Audit And Does My Business Need One?

A water audit compares the volume of water your business uses against what you have actually been charged, checking for billing errors, incorrect drainage bandings, and VAT discrepancies. It also identifies where consumption could be reduced. Businesses with complex sites, high usage, or long-standing contracts with a single supplier are most likely to benefit from an audit, as billing errors in those situations can go undetected for years.

What Is A Water Usage Survey?

A water usage survey is an assessment of how much water your business consumes across all activities and facilities. Your supplier analyses your bills and asks questions about your operations, including staff numbers, sanitation facilities, and any water-intensive processes. The output is a detailed report that gives you a clearer picture of where water is being used and where it could be reduced.

What Are The Benefits Of Switching Water Supplier?

The main benefits of switching water retailer are: lower standing charges or volumetric rates from a more competitive supplier; better customer service and dedicated account management; access to water efficiency tools and audits; and consolidated billing if you operate multiple sites. The physical water supply is unaffected, only the retail relationship changes.

Does Switching Water Supplier Affect My Water Supply?

No. Switching retailer has no effect on your physical water supply whatsoever. The same regional wholesaler continues to maintain the pipes and infrastructure. Only your billing, account management, and customer service transfer to the new retailer.

How Do I Find Out Which Water Supplier Covers My Area?

Your regional water wholesaler is determined by the location of your premises and cannot be changed. You can find out which wholesaler covers your area using Tariff’s regional water supplier directory, or by checking the Open Water website.