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Health clubs to be hit by April 2022 rise in water rates
The turmoil and skyrocketing prices in the electricity and gas markets are well publicised, but soon health clubs will suffer price increases in another utility – mains water supply.
Business water rates are already a significant cost to health clubs for the following reasons:
Large consumption of mains water - health clubs pay a volumetric charge per cubic meter of water supplied by the mains. Shower facilities, toilets and topping up the pool all contribute to massive water consumption.
Surface and highway drainage charges - in the North of England and Scotland, surface drainage fees are charged based upon property area. In these areas, health clubs with large properties receive expensive drainage charges.
What’s happening to water rates in April 2022?
Every April, the water rates paid by businesses and households across the country increase with inflation as the cost of maintaining and operating the local water network increases.
April 2022 is different; regulator Water Service Regulation Authority (Ofwat) is allowing business water suppliers a temporary increase in default rates. This one-off price rise is designed to protect the water industry from suppliers going bankrupt under the weight of COVID-19-related bad debt.
Most businesses in England have never switched water suppliers, so instead pay the default rates set to increase.
What can I do about increasing water rates?
The English water market deregulated in 2017 and competition among water suppliers has gradually increased. The savings now available from switching away from default rates to a fixed-term contract are significant.
Now, health clubs can save money with cheaper water rates and avoid the April price increase by comparing and switching water prices today.
AquaSwitch provides a free service. Request a business water comparison report to see how much your health club could save by switching water suppliers.