Water Bill Validation

What Is Water Bill Validation?

As a business, regardless of what industry or sector you’re in, one of your biggest overheads will likely be your water bill.

Despite this, however, it’s not uncommon for companies to have little understanding about what they’re being charged for, or whether they’re being billed correctly based on actual water usage and consumption.

This is because, unlike domestic water bills, commercial billing can be complex and difficult to decipher.

Matters can be further complicated if you operate different sites and have different premises, if you use lots of water and/or if you have many different operational processes to account for.

Water suppliers often hide or obscure charges, so it can be difficult for you to work out if you’re being billed accurately or fairly over time.

Why is water bill validation important?

Water bill validation is a must for businesses of all kinds, ensuring cost control and operational efficiencies through billing error identification and overcharging issues.

It can also help you identify hidden water leaks, which over time can lead to significant financial losses.

By comparing your bills against meter readings and tariff rates, you can prevent overcharging from happening, so you only ever pay for what you use.

Incorrect charges can also be identified for fixed services and miscalculated site areas, helping you to save cash.

Plus you can submit claims for rebates and refunds if you were historically overcharged and bill validation reveals past errors. It’s possible for thousands of pounds to be recouped because of overcharging issues.

Aside from the financial benefits, you can also enjoy operational efficiencies through water bill validation.

For example, you can identify water leaks more quickly, ensuring swift action to reduce water wastage and save you money, as well as supporting the natural environment.

It also helps your business become a better water steward, improving sustainable water management practices and boosting your water footprint.

This, in turn, will make consumers look upon your business more favourably, potentially encouraging them to spend with you.

How to detect errors in water bills

There are various ways to identify errors in your water bills, including:

Comparing current & past bills

See if there are any sudden increases in the amount due or if you can see a sudden spike in usage.

Check the billing period

Make sure that the bill you’re looking at covers the right timeframe and isn’t for a longer period than you were expecting.

Check your meter readings

If you’re suspicious about a bill, compare it against your meter reading to make sure they both tally up.

Reject estimated readings

Make sure that your bill includes an actual meter reading, rather than estimated usage, to avoid being charged incorrectly.

Regularly review additional charges

It’s possible that you may be charged unnecessarily or incorrectly for services such as wastewater and surface water drainage, so review these regularly to make sure they’re accurate.

Regularly check for hidden leaks

Water leaks can be difficult to find, developing behind the scenes or far below ground. Over time, even a small trickle can add up to a big problem, costing you lots of money in wasted water and property damage. Carry out site checks regularly to keep on top of problems

Inspect the meter

If you have a water meter on site, carry out regular checks to make sure that it’s working as it should be. Request a meter test if you’re unsure.

Is it worth getting a water meter installed?

With a water audit and ongoing bill validation, you can start to build up a good understanding of what your expected water costs will likely be, but until then it can be hard to work out if your water bills are too high.

As a business, one of the most effective ways to assess water usage and consumption is to install a smart water meter.

If you don’t have one of these, you will either be charged on an unmeasured or assessed tariff, which is set by your water wholesaler.

Unmeasured water tariffs

On unmeasured tariffs, you will be charged for water and sewerage services based on the rateable value (RV) that’s associated with the premises you’re in, rather than the amount of water that you’re actually using.

Water companies will calculate your bill based on fixed charges and a charge based on the RV of the site, taking into account size and location. This can be problematic, particularly if your water consumption varies over time.

If you think that your unmeasured tariff charges are not a reflection of how much water you’re using, you can have a smart meter installed or you can move to an assessed tariff, which is more accurate than the unmeasured tariff.

Assessed water tariffs

It may be that you can’t have a water meter installed – and wholesalers can refuse to do this if it transpires that it’s not practical or it’s too expensive.

In this instance, your water company must offer you an assessed charge, an alternative to the standard unmetered rateable value charge. This will not be offered to you unless you’ve already applied for a water meter.

Assessed charges are based on:

• Property size
• Property type
• Number of occupants
• What water resources are being used for
• An annual estimate of your water consumption

In this instance, it is necessary to inform your water retailer about any changes to your business activities that could have an impact on water consumption, such as changes to business hours or staff numbers.

How do water meters save businesses money?

Figures from MOSL show that one in ten businesses now have a smart water meter, with water companies investing £1.7 billion to install an extra ten million between 2025 and 2030, including almost 800,000 business customers.

Installing a water meter can help you save money in a range of ways, particularly if you’re in a heavy water use industry such as hospitality, manufacturing or agriculture.

Money-saving opportunities include:

Accurate billing

You’ll receive accurate water usage measurements, which in turn makes sure you receive fair and precise billing, only paying for what you use.

Cost savings

You can potentially make significant savings with a water meter if you’re a business without heavy reliance on such resources, as you’re only paying for what you use.

Water meters also mean that you will become more aware of how much you’re using, which can encourage water-saving campaigns and solutions through heightened awareness of consumption, thereby lowering bills as a result.

Improved budgeting

Knowing what your monthly bills are is essential for keeping costs down and a water meter can help you do just that, allowing you to budget more accurately for utility expenses.

If you run a seasonal business where water consumption fluctuates throughout the year, this can be particularly useful.

Rebates

It’s possible that your water retailer will offer rebates to offset installation costs of water meters, as well as other incentives for additional savings over time.

Water bill validation: Best practice for businesses

The best way to validate your water bills is to perform regular water audits so you can better understand your usage and consumption, while checking bills for accuracy.

This will help you identify leaks, water wastage and the vulnerable areas across your site where water-saving solutions could be employed.

To identify over or undercharging, audit a minimum of 12 months of water bills so you can make sure that your current billing is an accurate reflection of your site, based on the tariffs and rates in your area.

As mentioned, smart meter installation is a recommended option to help you monitor your water usage, immediately identifying spikes in usage which indicate you have an issue that needs to be resolved.

It might sound simple but it can be complicated and time-consuming, which is why enlisting the services of professional water consultants can make a significant difference.

When you book in a water audit with the H2o Building Services team, we include water bill validation as part of the process.

Here, we compare historical billing with your water use to ascertain that you’re only paying for the water you use – and no more. The process can be broken down into three stages:

• Checking that previous bills are accurate and that you haven’t been overcharged
• Identifying ways to save money on future bills
• Ongoing monitoring of bills to ensure that you never pay more than you should

How to dispute a water bill after validation

If you think you’ve been billed incorrectly, get in touch with your water retailer and request a reassessment.

Gather as much evidence as you can, taking meter readings with dates, times and photographs, as well as any details of leak tests. Provide details of any changes to your business operations that could have an impact on water consumption.

Do not delay if you do spot an error and get in touch with your water company as soon as you can. They have a duty to investigate and, if in England or Wales, are bound by Ofwat regulations regarding procedures for complaints and disputes.

Remember that you have the right to question any unusual changes in your bills and request corrections wherever relevant.

It may be that your water supplier will ask that you complete a written/emailed complaint form. Follow all instructions and retain copies for your own reference. If you don’t own your business site, get in touch with the landlord or facilities company to apprise them of the situation.

Once an issue has been raised, your water supplier will open a case and launch a file review. Usage history will be verified, alongside examination of meter readings and any submitted documents.

If a leak is identified, leakage allowance may be considered where charges are reduced for the period in question.

If billing or clerical errors are identified, the supplier will investigate further and confirm whether adjustments are required. You may receive a refund, a revised bill or an explanation as to why the original bill was accurate.

It is a time-consuming and potentially frustrating process, but the H2o Building Services team can help you be successful in your complaint, doing the leg work for you.

Business water bills made easy: Call H2o today!

As well as carrying out an initial water audit and checking over your accounts, we also offer ongoing water bill validation where bills are monitored and managed over time.

All bills are examined by our team of water consultants before you receive them, so they can be verified and validated before payment is approved.

This ensures peace of mind that the fees you’re paying are correct every time, with any issues dealt with immediately before payment authorisation.

Working in this way, we successfully saved McDonald’s £250,000 to date through long-term monitoring of surface water charges levied for all its UK restaurants.

We offer our clients:

• No long-term contracts
• Money-saving opportunities on an ongoing basis
• Past and present billing history emailed on demand
• Billing errors dealt with before payment authorisation
• Efficient identification of water usage spikes
• Easily accessible information on water and wastewater issues

To find out more, get in touch with one of our experienced and professional water audit experts today.

Water Bill Validation – Infographic

Do you know precisely what your water supply company charges you for? Would you have any idea if they were billing you correctly based on your actual water use, or whether you were being overcharged?
Download Water Bill Validation Infographic