Why Do Water Company Performance Targets Matter For Businesses?

The water industry is once again under the spotlight after Thames Water’s chief executive argued that some of the performance targets set by regulator Ofwat are ‘not realistic’. 

Speaking to the BBC, Chris Weston said expectations around issues such as leakage reduction had to reflect the age and condition of existing infrastructure, while acknowledging that the company still has a long way to go to improve its overall performance.

Whether people agree with that assessment or not, the debate raises an important question: how should the performance of a water company be measured?

For businesses, the answer extends beyond headlines about leakage figures or regulatory targets. Day to day, organisations need accurate billing, responsive customer service, useful account management and support to control costs.

These are all areas where comparing business water suppliers can make a meaningful difference.

Water efficiency is about more than one number

Leakage targets naturally attract attention because they are easy to understand. Millions of litres of lost water make for striking headlines. However, businesses experience water services in many different ways.

For a finance manager, good performance might mean invoices that are easy to understand and arrive on time. For a facilities manager, it could mean quick responses when a meter issue arises.

For a multi-site business, it may be the ability to view water use across every location through a single online portal. In other words, performance isn’t just about what happens underground. It’s also about the quality of service businesses receive every day.

Is your business water supply on autopilot?

Many organisations devote considerable time to reviewing insurance, telecommunications, waste management and energy contracts.

Commercial water often receives much less attention. That is understandable. Water is an essential service that quietly keeps businesses running, so it rarely feels urgent to review existing arrangements.

But leaving your water services on autopilot can mean overlooking opportunities to improve both service quality and operational efficiency.

A regular review allows businesses to ask simple but valuable questions:

• Are we happy with the level of support we receive?
• Is billing clear and accurate?
• Could administration be made easier?
• Are we receiving advice to help reduce consumption?
• Does another retailer offer services that better suit our organisation?

These questions become increasingly relevant as businesses grow or change.

Every organisation uses water differently

No two businesses have identical water requirements. A manufacturer may use significant volumes as part of its production process.

A hotel relies on consistent supply to maintain guest satisfaction. An office may have relatively low consumption but still value straightforward billing and responsive customer support.

Healthcare providers, schools, warehouses and retail premises all have their own operational priorities.

Because every organisation is different, the ‘best’ commercial water supplier is not necessarily the one with the lowest headline tariff. The right choice depends on the overall package of service, support and account management.

A better water supplier relationship can save time

Water invoices rarely dominate a finance department’s workload, but administrative issues can quickly consume valuable time.

Examples include:

• Resolving billing queries
• Updating account details after relocating premises
• Managing several accounts across multiple sites
• Tracking historical consumption
• Reporting water usage internally

An experienced commercial retailer can simplify many of these routine tasks through digital account management, consolidated billing and dedicated customer support.

Reducing administration may not appear on a utility bill, but it represents a genuine business saving.

Data has become one of the most valuable resources

Businesses increasingly rely on data to improve efficiency. The same principle applies to water. Understanding how much water is used, where it is consumed and how consumption changes over time enables organisations to make better operational decisions.

For example, usage data may reveal:

• An unexpected overnight flow suggesting a hidden leak
• Seasonal trends that explain changing consumption
• A sudden increase following equipment changes
• Differences between similar sites that warrant investigation

Without this information, businesses are effectively managing one of their essential utilities in the dark.

Switching is about choice, not disruption

One misconception still discourages businesses from reviewing their water supplier. Some assume switching means changing pipes, interrupting supply or carrying out engineering work.

In reality, none of these things usually happen. The physical water network remains exactly the same. Your premises continue receiving water from the local wholesaler, while your chosen retailer manages the commercial relationship.

That means businesses can benefit from improved service without disrupting normal operations. For organisations that have never reviewed their supplier since the market opened to competition, this flexibility is often an unexpected advantage.

Water efficiency starts with better conversations

Reducing water consumption starts with asking focused questions.

• Could water-intensive processes be adjusted?
• Have all meters been checked recently?
• Are there opportunities to identify leaks more quickly?
• Would staff benefit from simple awareness measures?

Many commercial water retailers provide practical guidance that helps businesses answer these questions. Rather than simply acting as a billing provider, the retailer becomes a partner in helping organisations manage an increasingly valuable resource.

Good value for water is not always just about cost  

Price will always be an important consideration when comparing water suppliers. However, focusing exclusively on tariffs can overlook other areas of value.

Businesses should also consider:

• How easy is it to contact customer support?
• Are invoices easy to understand?
• Can usage data be accessed online?
• Is there dedicated account management?
• Does the retailer offer water efficiency advice?
• Can multiple locations be managed under one account?

Taken together, these factors often have a greater impact on the overall customer experience than price alone.

Why regular reviews make sense

The debate around Thames Water’s performance targets illustrates how much attention is now being paid to the water sector. Regulators are demanding improvements, companies are investing heavily in infrastructure and customers rightly expect higher standards.

Businesses can benefit from adopting a similarly proactive mindset. Rather than waiting for problems to arise, reviewing your commercial water arrangements every few years helps ensure they continue to support your organisation’s needs.