Farmers warned water bills likely to rise in April

Farmers are being warned that they should prepare for an increase in their water bills in April.

Water comparison site Aquaswitch has said that it expects to see charges for business users of water move upwards to reflect changes in the wholesale price and because of an exceptional increase that will be levied to protect suppliers against Covid-related bad debt losses.

It suggests wholesale price increases will vary from region to region, but could be around the 3-4% mark, while a bad debt adjustment agreed with Ofwat will equate to 0.31% of total water bills in the English non-household water market.

See also: Water deregulation: Farmers ignoring opportunity to cut bills

Water suppliers will also want to factor in a rise in the retail fee they charge customers.

Kelly Hewson-Fisher, NFU national water specialist, said it was anticipated there would be an increase in price for business users, but it was not clear yet what that would mean in percentage terms or price/cu m.

The business market for water was a complex mix of wholesalers and retailers, so it had not possible to get an indication of an average increase, she said.

“There will be an increase for household bills, but for business and non-household, the issue we have is just how much that increase will be.”

Given many farmers use lots of mains water, it was important to be aware that this change was coming.

“After April, have a look at your bills, see what the impact will be and the implications for your own business,” said Ms Hewson-Fisher.

“If you are concerned, then get in touch with your retailer or look at a comparison website.”

Since 2017, farmers have had the option to choose their own water supplier, but it is thought that most have tended to stick to their pre-existing supplier, paying the default tariff.