Leading firm of water consultants H20 Building Services sends out a stark warning to those customers still receiving estimated water bills.
The water bill validation team at H20 Building Services have identified a substantial back charge liability for a new client of £1 million!
An historical water audit was completed as a part of the overall pitching process for the water and waste water cost reduction project.
For some time the client has been billed for water and waste water services based on estimated readings and historical water billing data.
Although the water consumption appeared very high in consideration of the site operations an actual water meter reading has revealed a potential back charge liability of £1 million which will come as a huge shock to the business.
There is potential for many more customers to receive huge water, waste water and trade effluent bills in the very near future.
Indeed, there will be customers making provision for back charges by way of accruals based on previous charges prior to water market deregulation.
Now the water retail market is in its 3rd year back charging will increase as incorrect water market data is slowly rectified.
Irrespective of water market data corrections says Graham Mann, Senior Partner at H20 Building Services, there will be customers that have water leaks on their water supply pipes underground and water losses inside buildings and this will contribute to higher than budgeted water consumption and will have dire consequences on finances going forwards.
Ask yourself this – What effect would a back charge bill of £100,000, £200,000 or even £1 million have on your budget?
Believe me water retail companies will not simply reduce a large un-budgeted water, waste water or trade effluent bill without good reason, as the water wholesaler will bill the water retailer and you will receive the bill.
Taking regular water meter readings is the key.
Now is the opportunity to look much more closely at your water and waste water charges and obtain advise from experts in the water industry and protect your business or organisation from a crippling water back charge bill which if you are on estimated bills you leave yourself wide open to what could be a very large back charge bill.