From 1 April 2026, businesses across England, Scotland and Wales will face another round of significant water and wastewater price increases. These are part of the biggest transformation of the UK water sector in decades, driven by Ofwat’s PR24 price controls (2025–2030) and the record £104 billion investment programme approved to overhaul water infrastructure, reduce sewage spills, and secure long‑term supply resilience.
These increases will directly impact operational costs for SMEs, multi‑site organisations, and high‑consumption industries. Understanding what’s changing—and what you can do about it—is essential.
Why Are Water Prices Rising Again in 2026?
Water wholesalers set charges annually, but 2026 marks the second year of a front‑loaded five‑year investment cycle, approved by Ofwat to address widespread infrastructure failures, environmental pressures, and population growth.
Key drivers include:
- Major infrastructure upgrades: New reservoirs, treatment plant upgrades, storm overflow reduction, and leakage reduction.
- Environmental requirements: Companies are mandated to meet stricter standards set by the Environment Agency, Natural Resources Wales, and the Drinking Water Inspectorate.
- Historic under‑investment: Decades of low capital reinvestment have resulted in failing systems and public outcry over pollution events.
- Regulatory pressure: Wholesalers must now deliver performance improvements or face penalties, clawbacks, and refund mechanisms.
HOW MUCH WILL WATER PRICES INCREASE IN 2026?
Wholesale charges—the largest portion of business water bills—will rise across nearly all regions. These increases vary significantly depending on the supplier and whether the charge relates to water, wastewater, or trade effluent.
Below are the verified 2026/27 wholesale price changes:(src:Waterplus)
Major Regional Increases
| Wholesaler | Water | Sewerage | Trade Effluent | Average |
|---|---|---|---|---|
| Affinity Water | 11.7% | 0.0% | 0.0% | 11.7% |
| Anglian Water | 11.9% | 9.8% | 13.0% | 11.3% |
| Bristol Water | 15.7% | 0.0% | 0.0% | 15.7% |
| Northumbrian Water | 3.8% | 5.4% | 16.9% | 6.3% |
| Portsmouth Water | 4.3% | 0% | 0% | 4.3% |
| Severn Trent Water | -1.1% | 12.1% | 10% | 4.8% |
| South East Water | 12.6% | 0% | 0% | 12.6% |
| Southern Water | 29.1% | -5.6% | -7.1% | 5.7% |
| Southstaff Water | 4% | 0% | 0% | 4% |
| Southwest Water | 11.5% | 24.5% | 14.9% | 17.1% |
| SES Water | 7.7% | 0% | 0% | 7.7% |
| Thames Water | 10.6% | -4.9% | -4.6% | 2.8% |
| United Utilities | 17.9% | 8% | 11.1% | 12.1% |
| Wessex Water | -1.5% | 10.2% | 3.4% | 4.7% |
| Yorkshire Water | 3% | 9.8% | 6.8% | 6.4% |
How Black Sheep Utilities Can Help
At Black Sheep Utilities, we are committed to helping businesses navigate these changes and find the best possible rates for their water supply. Since deregulation in 2017, businesses in England have had the option to switch water suppliers and secure competitive rates. However, around 80% of businesses have never switched and continue to pay default business water tariffs set by their regional supplier. It’s important for business owners to shop around to find the best possible rate for their water before the pricing increases in April.
SEE HOW MUCH YOU COULD BE SAVING
For more information
on The Business Water Market phone us on
01273 914000
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