Scottish Water has announced price rises that will take effect from 1 April 2022. Scottish Farms will be hit by a 4.2% in the wholesale price of purchased water, with the cost of water increasing from 75.2 to 78.4 pence per cubic meter.
The announced price hike will hit households and businesses across Scotland. Scottish Water is raising prices to fund investments that protect against the long-term consequences of climate change. Climate scientists predict more intense rainfall, flooding and increased instances of drought, which Scottish water infrastructure will need to withstand.
How are farm water bills calculated?
The Scottish business water market is deregulated, such that the water supply to farms is provided by one of 25 competing licenced water suppliers.
The bill farms receive are made up of two components:
- Wholesale water charges from Scottish Water
- A retail fee charged by the business water supplier
Under the Water Industry Commission for Scotland regulations, the wholesale water charges are regulated and increase once a year in April to reflect the cost of maintaining water services across Scotland.
The retail fee is not regulated with the business water suppliers competing in both levels of service and pricing.
What can I do about my rising water bills?
There are big differences in the retail water rates charged by the competing suppliers in Scotland. Scottish farms spend a huge amount of water, so it’s essential to ensure that your tariff is competitive.
If you are out of contract or coming to an end of a water contract, it’s important to compare the water market to get the most competitive deal.
See how much your farm can save today with the AquaSwitch business water comparison tool.
Never switched business water supplier?
The Scottish water market deregulated in 2008 with the supply of all non-household properties transferred to Business Stream, the default provider. Approximately 5% of Scottish businesses have never switched and remain on the default tariff.
If your farm is paying default business water rates, you could be paying considerably more than necessary on water. We recommend comparing the water market to save today.
*This article contains sponsored content and does not necessarily represent the views of The Scottish Farmer.
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