How Water Bills Work in the UK
Water bills cover clean water supply and sewage removal. Here is how they are calculated, what the charges mean, and why prices vary by area.
Water bills cover two things: clean water coming in and wastewater going out. If you have a meter, you pay for what you use. Without a meter, you pay a fixed amount based on your property’s rateable value. You can’t switch water companies - they’re regional monopolies.
Unlike energy or broadband, you can’t shop around for water. Your water company is determined by where you live, and they’re the only option. But understanding how the bill works can still help you spot problems or opportunities to pay less.
What Your Bill Covers
Your water bill pays for two services:
Water supply - Clean water delivered to your taps. This covers treatment, pipes, and maintenance of the supply network.
Sewerage/wastewater - Taking away dirty water and treating it. This includes drains, sewers, and treatment works.
Most households get both from the same company. Some areas have separate companies for water and sewerage.
| Service | Typical Annual Cost (2025/26) |
|---|---|
| Water supply | £220-£300 |
| Sewerage | £250-£350 |
| Total | £470-£600 |
The split is roughly 40% water supply, 60% sewerage. Dealing with wastewater costs more than providing clean water.
Metered vs Unmetered
There are two ways to pay:
Metered (Pay for What You Use)
A meter measures how much water enters your property. You pay:
- A fixed standing charge (covering meter and connection)
- A rate per cubic metre of water used
Typical costs:
- Standing charge: £40-£80 per year
- Water rate: £1.50-£2.50 per cubic metre (1,000 litres)
- Sewerage rate: £1.50-£3.00 per cubic metre
Your actual bill depends on your usage. Light users pay less; heavy users pay more.
Unmetered (Rateable Value)
Without a meter, you pay a fixed amount based on your property’s rateable value - a measure of its size and value from the old rates system (before council tax).
The rateable value is multiplied by a rate set by your water company. Higher rateable value = higher bill.
This system is outdated but still applies to millions of properties. You generally can’t find out your rateable value easily - it’s just whatever’s on the water company’s records.
Which Costs Less?
Depends on your situation:
| Household Type | Usually Cheaper |
|---|---|
| 1 person | Metered |
| 2 people, water-efficient | Metered |
| Large household (4+) | Unmetered |
| Garden with hosepipe | Unmetered |
| Swimming pool | Unmetered |
Rule of thumb: If there are fewer people in your home than bedrooms, a meter usually saves money.
Getting a Water Meter
If you want a meter, your water company must install one free of charge if it’s practical. The process:
- Request a meter from your water company
- They check if installation is feasible
- Installation happens (usually within a few months)
- You get 12 months to try it
- If it costs more, you can switch back within the first year
After 12 months, you’re stuck with metered billing even if it’s more expensive.
For flats and some properties, meter installation isn’t possible. In these cases, companies offer assessed charges based on similar metered properties.
Why Prices Vary by Area
Water companies are regional monopolies. Each sets its own prices, approved by regulator Ofwat. Prices vary because:
Geography - Hilly areas cost more to pump water around. Rural areas have longer pipes per customer.
Infrastructure age - Some companies have older pipes needing more maintenance.
Water source - Some areas rely on expensive treatment of river water; others have cheaper groundwater.
Investment needs - Companies building new reservoirs or treatment works pass costs to customers.
Efficiency - Some companies run their operations more efficiently than others.
| Company | Typical Annual Bill (2025/26) |
|---|---|
| Cheapest (Severn Trent) | £430-£470 |
| Average | £530-£600 |
| Most expensive (South West) | £650-£700 |
You can’t switch to a cheaper company. Where you live determines who supplies you.
Bill Frequency
Most water companies bill:
- Twice a year - Two bills, six months apart
- Monthly - Direct debit spreading the annual cost
Monthly direct debit helps with budgeting. Some companies offer a small discount for paying this way.
Common Bill Items
Your bill should show:
| Item | What It Means |
|---|---|
| Water supply charge | Cost of clean water |
| Sewerage charge | Cost of wastewater removal |
| Standing charge | Fixed fee for being connected |
| Surface water drainage | Rain water from your roof and driveway |
| Highway drainage | Contribution to draining public roads |
If you have a soakaway or water butt that handles all your rainwater, you may not need to pay surface water drainage. Contact your company to check.
Problems With Your Bill
If something seems wrong:
Bill much higher than expected - Check for leaks. Undetected leaks can waste thousands of litres.
Estimated readings - If metered, submit your own reading for an accurate bill.
Wrong property details - Make sure they have the right information about your home.
Can’t afford to pay - Contact your company about payment plans or social tariffs.
Water companies have to offer payment arrangements. They can’t disconnect your water supply for non-payment (unlike energy).