New Water Market Rules: The Impact on UK Businesses

Article posted

5th Aug 2025

Read time

4-7 min read

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Resolve Energy

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Is your business paying more than it should for water? It might be - and big changes are coming.

In July 2025, the UK Government issued its formal response to the Independent Water Commission’s final report and for businesses paying for commercial water services, this could mark a turning point.

The review, chaired by Sir Jon Cunliffe, former Deputy Governor of the Bank of England, was designed to assess whether the current market set-up is working in favor of business customers and the conclusion is clear: it isn’t working well enough.

 

Why is the Government Involved in Business Water?

The commercial water market was deregulated in 2017, allowing UK businesses to switch suppliers, in theory to increase competition, improve service, and reduce costs.

But in practice?

 

  • Many small and medium-sized businesses have never switched.
  • Billing remains confusing and opaque.
  • Customer service is often inconsistent.
  • And the promised savings haven’t materialised for everyone.

 

The government’s latest response indicates a growing recognition that reform is overdue. They're now exploring:

 

  • Tougher licensing and oversight of suppliers
  • Improved transparency and switching support
  • Stronger incentives for customer service
  • A market that better serves SMEs, charities, and the public sector

 

When the Bank of England Looks at Your Bills…

 

This wasn’t a token consultation. The review was led by Sir Jon Cunliffe, a heavyweight in UK economic policy with deep experience in regulation and financial markets.

His involvement signals that this isn’t just about utilities - it’s about efficiency, fairness, and economic productivity. If poor billing practices or hidden charges are affecting how businesses operate, it becomes a national issue.

That level of oversight suggests one thing: real change is coming and businesses should start paying attention now.

 

What This Means for Your Business

Even before any policy changes take effect, this is a prime opportunity to take stock of your current water arrangements.

 

Here’s what you should know:

 

  • You might be overpaying.

Many businesses are on outdated tariffs or default rates, which can be 20–30% higher than negotiated rates.

  • Switching is simple with the right support.

Most companies don’t switch simply because they’re unsure how, or they don’t have time to compare options.

  • Billing transparency varies hugely.

Hidden costs, estimated usage, or vague service fees are still common especially for multi-site businesses.

  • Water efficiency will soon hit the boardroom.


    With rising environmental expectations and new market reforms on the horizon, knowing how much water you use and waste will become essential.

 

The Resolve View

At Resolve, we welcome reform but we also know that businesses can’t afford to wait for government policy to catch up.

Whether you’re a retail chain, manufacturer, office, or hospitality business, your water spend is likely higher than it needs to be.

And in a market this fragmented, the best protection isn’t policy it’s knowledge.

We believe:

“Better oversight is great, but proactive cost management today beats policy promises tomorrow.”

 

What You Can Do Today?

 

Review your current water contract.


Do you know when it ends? What does your usage look like? Whether you’re on a fixed or default rate?

Ask for a no-obligation audit.


Resolve offers fast, expert reviews of your business water spend. We compare your usage, look for billing red flags, and identify potential savings.

Be ready for reform.


Whether it’s new licensing, service benchmarks, or easier switching, the businesses that understand their data now will benefit most.

 

Let’s Get You Ahead of the Curve

Don’t let legacy contracts or unclear billing hold your business back.

Request your free water review today - no jargon, no hard sell. Just honest insight and the chance to take control of your utility costs.

 

This article is based on the UK Government’s official response to the Independent Water Commission’s final report, chaired by Sir Jon Cunliffe, published July 2025. Read the full statement here:
https://www.gov.uk/government/speeches/government-initial-response-to-independent-water-commissions-final-report

 

Lower Your Water Bills with Expert Negotiation

We work with top water suppliers to cut costs and optimise your business supply – without the hassle.

Get your water quote

 

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