Water bills explained: Understanding your charges

We tend to be less concerned with our water bill than any other utility, as historically, water bills haven't been based on our usage. Instead, they've been down to our water supplier's standing charges and the rateable value of our property; two things that we haven't been able to do anything about.

With our energy bills, we can often save money by switching providers, but this isn't possible with our water supply, as we are tied to our local supplier.

It leaves us having to find other ways to save money. But by understanding how we are billed and becoming more aware of our water usage, we can decide whether swapping to a water meter is our best option.

Who supplies my water?

In England or Wales, water supply is divided between 11 regional water and sewage companies and 10 'water only' companies. While most customers in England and Wales receive a combined water and sewerage bill, in some parts of the country, customers are supplied by separate companies and may receive two bills.

In Scotland, water and sewerage services are provided by a public company, Scottish Water. 

Discover who provides your water and sewerage services.

How much is the average water bill?

The average annual water and sewerage charge across England and Wales is £473 (April 2024 - March 2025), an equivalent of £1.29 per day. This annual figure is split into & pounds £224 for water and £249 for sewerage.

So it doesn't come as a surprise when you consider that water companies use 2% of the UK's energy, according to Water UK, which represents the UK's water industry. This translates into an average increase of £27.40 on a household's annual bill.

How is my water bill calculated?

Water bills are calculated in three ways. They are either metered, unmetered, or assessed (if you can't install a water meter). Bills are based annually, although you don't need to pay them in one sum, and they run from April 1 to March 31.

You should expect to receive your annual water charges well before the beginning of April. "As an Anglian Water customer, mine arrived in mid-February".

Unmetered charges

If you don't have a water meter, your bill isn't based on the water you use. Instead, your water bill is calculated on your home's rateable value if you live in England and Wales. The higher your rateable value, the more you’ll pay.

For those in Scotland, the system is slightly different. Your water bill is based on the Council Tax band your home is in, and a 'combined service charge' covers both bills.

Meter charges

If you have a water meter installed, you'll receive a bill based on how much water you use. It will include standing and volumetric charges for your water and wastewater services.

You can expect to pay slightly more for your standing charge than unmetered customers, as fixed costs associated with being a metered customer are higher.

Andy White, senior leader for social policy at the Consumer Council for Water, explains: "This is because meters have to be read, maintained and eventually replaced. However, for many small households, the higher standing charges are outweighed by much lower costs overall based on charges being linked to actual usage".

Understanding your bill

Your water bill is dependent on multiple factors. Apart from the different ways of charging metered and unmetered customers, where you live also plays a part, as each water company sets its charges independently. And, as mentioned above, some regions also receive separate bills for water and sewerage services, rather than a combined bill.

If you receive your water services from one supplier, your bill will cover the supply of clean water and the wastewater treatment. And the frequency of when you are sent your bill will depend on whether you are a metered or unmetered customer.

Metered customers will receive a bill every six months, showing charges for every cubic meter of water you've used. It will also include fixed charges, covering running costs, like maintaining pipes and providing customer service.

Unmetered customers will receive a yearly bill, and the cost for clean and wastewater will be based on the rateable value of your property. And fixed charges, as mentioned for metered customers, will be added on top.

Water vs sewage charges

Water charges are for the freshwater that flows from our taps. Sewerage charges are for the water that goes back into the system as waste and needs to be treated. You might hear this being referred to as foul or grey water. You can find out more about what services are included in each bill at Discover Water.

Where and when do I pay my water bill? 

There are many options for paying your water bill, from paying by phone, popping into a Post Office, or setting up monthly direct debits. If you're in any doubt, contact your water company.

• Phone - It's possible to make regular or one-off payments over the phone using a debit or credit card.
• Instalments - Paying your water bill in regular installments makes it easier to manage your money. These can be made online, by phone, by bank transfer, or at the Post Office. Some water service companies may also offer payment cards to pay by cash at a Payzone or PayPoint outlet.
• Bank transfer - You can manage your payment using your bank's telephone, online or branch banking service.
• Over the counter at your bank - You can drop into your bank or building society and pay your bill over the counter. Just remember to take along your bill. (Your bank or building society may charge you for this service.)
• At the Post Office - Take your bill to any Post Office to pay by cash, cheque or card. (The Post Office may charge you for this service.)
• By post - Write out a cheque to your water company, add your account number on the back, and pop it in a correctly addressed envelope along with the payment slip that you’ll find on the bottom of your bill.
• From abroad - Your water company should be able to provide you with banking details if you want to pay while you're abroad.