International comparisons - business charges: results for 2006–07
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Introduction
Introduction

 Customers' bills
Customers' bills		 Unit costs
Unit costs

 Customer service levels
Customer service levels		 Water quality
Water quality
Environmental performance
Environmental performance		 Water balance
Water balance

 Water efficiency
Water efficiency

 Leakage
Leakage

 Network activity
Network activity


International comparisons - business charges: results for 2006–07


Key conclusions
  • Charges (p/m3) for business customers in the UK are in line with other countries in Northern Europe.
  • Business charges have generally increased across Europe, North America and Australia since last year.

Figure 3 and table 5 show estimates of charges to business customers in a range of countries, taken from a 2007 survey by the NUS Consulting Group. Figures are calculated on the basis of a model supply for a business occupying 45,000 square feet of city centre office space and consuming 10,000 m3 of water a year.

Relative business charges mirror the trend in household prices, with general increases across Europe, North America and Australia. The main reason is investment to maintain and improve aging infrastructure. Other reasons include rising purification costs, taxation, water quality and legislation.

Northern European countries have the highest business charges. Although average charges increased in the USA last year, overall the USA is the cheapest of the countries surveyed. This reflects that many American cities reported little or no increase this year as local governments forestall improvements until absolutely necessary.

The Water Industry Commission for Scotland (WICS) has determined that bills for business customers in Scotland will rise by 1.5% less than the rate of inflation until 2009-10. This compares with average increases of 3.2% above the rate of inflation in England and Wales for 2007-08 and 2.5% above inflation for 2008-09. In Scotland the market for retail services for non-household water and sewerage customers was opened up to competition in April 2008. This is likely to affect future levels of bills for business customers. The charge caps set by WICS define a default tariff that serves as a minimum standard (on price and service levels) that Business Stream and its competitors must offer as an option to customers.

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