Water wholesale costs will rise again from April: What do I need to know?

From 1 April 2026, water wholesale costs are set to rise an average 9%.

Comprised of the expenses of sourcing, treating and transporting water to properties and managing wastewater, water wholesale costs make up most of your bill.

Water companies update these charges each year, with the new prices coming into effect from 1 April.

Water contracts are priced on a “Wholesale+”-basis, meaning everyone is affected regardless of your retail contract position.

Let’s talk about what this means in practice and what you can do to avoid the rising tide.

What is the latest?

This is the second successive year of significant increases following Ofwat’s 2024 Price Review (PR24), which covers the 2025-2030 period, and above inflation rises appear to be the new normal.

However, there are significant regional differences – some areas and tariffs are more impacted than others.

Here are examples of some percentage increases based on small to medium user tariffs and an average of water, waste and banded surface water drainage where applicable.

If you are a large water user, your portfolio should be reviewed separately as the impact of rising wholesale costs ultimately depends on multiple factors, including your location, usage and meter size.

How can Inspired help?

Controlling your usage is the only way to reduce the impact of rising wholesale prices to your portfolio. This requires scrutinising all aspects of your consumption to reduce how much water your organisation uses, make efficiencies and pinpoint any wastage.

Obtaining a comprehensive view of your water usage with a consumption review and the installation of Automatic Meter Readers (AMRs) will allow accurate comparison of sites. Once you know how much you use, you can begin minimising your consumption and tackling any leaks.

A comprehensive water audit service focuses on your historical bills, and water network and tariff structures, pinpointing and recovering any overpayments and securing ongoing cost savings.

Whilst a water procurement contract does not protect against rising wholesale costs, a market wide tender exercise is crucial when your contract is due for renewal to ensure you are getting the right balance of cost and value-added services as part of a water management strategy.