What Do I Do With Weighted Average Cost Of Capital Stop Your Profits Dripping Away: Business Water Management Tips

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Stop Your Profits Dripping Away: Business Water Management Tips

Water costs are increasing for businesses

Although it may seem like a distant memory after last summer’s summer and winter’s snow, it was less than a year ago that many UK water companies put in place hosepipe bans and water shortage warnings. permanent. To cope with the increasing unpredictability of rainfall, significant (if overdue) investment is being made in the UK’s water infrastructure which feeds up to higher bills for businesses and consumers.

Unlike energy, deregulation of the water industry did not introduce competition in the water market, however, leaving regional providers with local monopolies in water and sewer services. . And while the cost of water is not the same as the cost of energy, that doesn’t mean that business users can’t proactively manage their water use and costs, cutting costs and expenses. the details. tariff and volume analysis.

Don’t overpay!

The first step is to ensure that you are not paying too much for your goods. The price of water and wastewater in the UK is determined by a tariff system, preventing users from negotiating directly with their suppliers. These payments, which are usually issued on April 1 and last for 12 months, are increasingly complex, however, and often include the following charges:

  • Water supply

  • Installation of water meters

  • Cost of wastewater treatment

  • Standing sewage pollution

  • Estimated cost or cost of surface drainage

  • Tolls on the road

  • The transaction fee

Understanding how much water and wastewater you’re currently buying is a priority in managing your water bill, valuing these amounts against any fees you receive from your water company. This process ensures that the correct charges are applied based on your actual use, identify two opportunity to save money in the future and refunds for historic oversubscriptions.

As water quantities and rate structures change, this review should be carried out annually to ensure you continue to pay the correct price.

Tariff analysis also helps to build your profile the use of dirty and dirty wateridentify additional savings opportunities, often from gas, and travel costs, as well as meter sizes.

For example, a site currently used as a warehouse may be home to a large liquid production facility that produces large amounts of commercial gas and generates large amounts of cash. The change of use to a warehouse should mean that water meters (intakes) can be reduced in size and the cost of commercial effluents cut, bringing immediate and long-term cost savings – but if new usage is estimated and reported to the water company.

Reduce water consumption

After you’ve made sure you’re paying the correct water and wastewater rates, the next step in managing your water costs is to reduce your water costs by eliminating waste and introducing new technologies.

By understanding your current water and sewer volume, you can begin to reduce waste, which is easiest by estimating the volume in similar homes. whether it is within your organization or that of another company.

The assessment is often based on understanding the causes of consumption, for example the number of people using a building, or the type of manufacturing process (eg bread or cement). Analyzing usage data from similar facilities can quickly identify inefficiencies, leading on-site investigations to identify specific causes of waste (e.g. broken pipes, worn equipment /ineffective) and what must be done to achieve savings.

This analysis can also assess the potential savings if waste reduction measures are implemented, identifying potential payback opportunities and prioritizing activities.

The introduction of water saving technology Also to be considered are low level toilets and automatic sensor pumps, rainwater collection and gray water recycling. These solutions generally have a quick payback period, qualify for tax relief through Enhanced Capital Allowances, are often affordable and can reduce energy bills due to reduced the demand for hot water.

A proactive approach to water management by analyzing costs, eliminating wastage and implementing new technologies ensures that costs are controlled, freeing up revenue and improving the edge.

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