Compared with electricity and gas, water bills are relatively low for most customers. Most of the cost of water is associated with its storage, treatment and distribution. Rain may fall free from the skies, but it has to be collected, treated to make it safe for human consumption, pumped to customers’ homes and the dirty water collected and cleaned.
The way bills are set – and their levels – varies across the UK, reflecting the organisation and history of water and sewerage services, including past levels of investment, and geographic factors such as the availability of supplies.
In Scotland charges for domestic customers are set by Scottish Water within limits imposed by the Water Industry Commissioner. In Northern Ireland the government, which controls and manages water services, sets the rate. In England and Wales a five-yearly price review undertaken by the economic regulator Ofwat determines customer prices. The most recent review was completed in December 2004 to set prices for 2005-2010. Only about a quarter of domestic customers are currently metered, so most customers pay a flat rate charge.
Most non-domestic customers in the UK are metered and pay for water services according to the amount they use. Businesses that discharge trade effluent to the public sewerage system are also charged for the reception and treatment of that effluent.
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