As of March 2026, water costs remain a major concern for UK businesses. Ofwat said average household bills for 2025/26 rose by
26% (£123), and its PR24 determination includes
£104 billion of sector investment over 2025–2030, with bills expected to increase by an average of
£31 per year over that period.
[1][2] While non-household charging works differently to household billing, the direction of travel is clear: many commercial and industrial sites are reviewing water efficiency, reuse, and private supply options such as boreholes.
Why businesses are looking harder at water costs
For many commercial sites, mains water is no longer just a background utility. Charges can vary materially depending on wholesaler area, retailer, meter size, discharge assumptions, and whether trade effluent applies. In the Yorkshire Water area, for example, indicative measured non-household volumetric charges shown by Water Plus for 2025/26 are around £2.18–£2.25 per m³ for potable water and £2.72–£2.86 per m³ for sewerage for many users in the 500–50,000 m³ band, before fixed charges and any trade-effluent-related costs.[3]
What this means in practice:
- Water and wastewater costs can stack up quickly on sites with high, continuous demand.
- Manufacturing, food production, cooling, washdown and process applications are often far more exposed than offices.
- For the right site, a borehole can support cost control, supply resilience and operational independence — but only where yield, water quality and compliance all line up.
A more realistic way to assess borehole viability in 2026
Rather than relying on generic “payback” claims, it is usually better to assess a borehole project against five practical questions:
1. Is usage high enough?
The strongest cases are usually sites with meaningful, repeatable annual demand rather than highly variable or low-volume use.
2. Is the local geology suitable?
A borehole is only as good as the yield and reliability of the source. Hydrogeology, drilling depth and local water availability are critical.
3. Can the water be treated properly?
Raw borehole water may need iron/manganese removal, hardness reduction, filtration, disinfection, demineralisation or other treatment depending on the application.
4. What happens during downtime?
Storage, duty/standby design, alarms and a sensible backup strategy matter just as much as headline running cost.
5. Can the site meet compliance requirements?
Licensing, groundwater considerations, sampling, monitoring and environmental obligations all need to be factored in from the outset.
When a borehole is often not the best option
- Low-consumption office sites with no process demand.
- Sites with highly inconsistent demand patterns.
- Locations where hydrogeology is poor or licensing is unlikely.
- Applications where treatment complexity would outweigh the operational benefit.
Office water use: a useful benchmark, not a borehole trigger
For office environments, Waterwise says that if a company uses more than 15 litres per person per day there is probably an opportunity to save water and money. It also notes that if office consumption is higher than around 0.55 m³ per m² per year, there is a high likelihood that water could be saved.[4] In many offices, straightforward efficiency improvements are therefore a better first move than private abstraction.
A sensible decision hierarchy for office-led sites
- Benchmark current consumption.
- Reduce avoidable use through fittings, leak reduction and behavioural changes.
- Review retailer options and charging structure.
- Only then assess alternative supply options if demand and resilience needs justify it.
Regulatory points to understand early
Licensing and timings
In England, if you plan to abstract more than 20 cubic metres (20,000 litres) per day, you are likely to need an abstraction licence from the Environment Agency.[5]
GOV.UK also notes that, once a valid application is made, the Environment Agency will usually make a decision within 28 days for temporary licence applications and within 4 months for other licence applications.[6]
Charges are not one-size-fits-all. Application and annual charges depend on the nature of the abstraction and local water availability, and additional charges may apply where further assessment work is required.[7]
What businesses should focus on instead of headline “cheap water” claims
Potential advantages
- Lower exposure to future mains price pressure
- Greater security of supply for critical processes
- Better control over treatment design
- A long-term asset when properly designed and maintained
Key realities
- Every borehole project is site-specific
- Treatment and compliance can be as important as the borehole itself
- Running costs are not “zero” — maintenance, monitoring and power still matter
- Backup planning is essential for business continuity
How Excel Water can help
Borehole treatment, storage and support — built around the site
Excel Water helps commercial and industrial customers assess whether a borehole is genuinely workable for their site and application. That includes:
Assessment
- Water-use review
- Application suitability
- Source and treatment appraisal
- System budgeting support
Treatment & package systems
- Filtration and softening
- Iron / manganese removal
- RO / DI / polishing where required
- Storage and distribution design
Ongoing support
- Service and maintenance
- Breakdown and remedial support
- Consumables and replacement media
- Optimisation and upgrades
The right answer is not always “install a borehole”. Sometimes the best result comes from better treatment, better storage, lower wastage, or a phased strategy that protects resilience first.
Considering a borehole or alternative water strategy?
Talk to Excel Water about treatment, storage, resilience and whole-life practicality — not just drilling.
✅ Site-specific advice
✅ Treatment-led assessment
✅ Practical guidance for commercial and industrial users
Get In Touch
Call 0113 232 0005 or email sales@excelwater.co.uk
Sources
- Ofwat, Average bills 2025/26 press statement — average increase forecast for 2025/26 of 26% / £123. View source
- Ofwat, Ofwat approves £104bn upgrade… — £104bn investment over 2025–2030 and average bills set to increase by £31 each year over five years. View source
- Water Plus, Scheme of Charges April 2025 — Yorkshire Water area measured potable water and sewerage volumetric charges for non-household users. View source
- Waterwise, The Waterwise Guide for Offices — benchmark figures of 15 litres per person per day and around 0.55 m³ per m² per year. View source
- GOV.UK / Environment Agency, Check if you need a licence to abstract water — likely licence requirement above 20 m³ (20,000 litres) per day. View source
- GOV.UK / Environment Agency, Apply for a water abstraction or impounding licence — typical decision times of 28 days for temporary applications and 4 months for other licence applications. View source
- GOV.UK / Environment Agency, Water resources licences: when and how you are charged and Environmental permits and abstraction licences: tables of charges — charges depend on abstraction type, local water availability and additional assessment requirements. View source