Kraken Business

Use water efficiently – the basics

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by

Team Kraken

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The UK has a wet climate, but some parts of the country have less water available per person than countries such as Greece or Spain. By 2050, climate change could reduce the amount of water available by 10-15 per cent.

Demand for water continues to increase, so it’s vital that you use water wisely. This means working out how much you use and putting simple measures in place to cut water use, which has the added benefit of cutting costs. You can also reduce the indirect costs of water use such as the energy used for heating, pumping and treatment.

This guide explains when a business needs a licence to take or store water, how to apply for one, and how to analyse the quantity of water you use. It also covers the benefits of cutting down your water use, gives you tips for saving water and describes the financial support available for introducing water efficiency measures.

Table of Contents

Benefits of using water efficiently

Over the past 20 years demand for water has risen steadily. Using water, especially hot water, uses energy and causes emissions of greenhouse gases which contribute to climate change. You should use water more efficiently to help ensure everyone’s needs continue to be met in the future.

All businesses can benefit from using water efficiently. In manufacturing, water bills can cost over 1 per cent of turnover. Most businesses could halve their water bill by implementing simple and economical water minimisation measures.

You could be paying more for water and associated costs than you need to. The cost of using water isn’t only what you pay to the water company for its supply. Other costs to your business may include:

  • disposal of your wastewater, either as a percentage of the amount of water you use or by the strength of your effluent
  • losses due to leaks and wasteful appliances
  • the energy you use to heat or cool water
  • wasting water, eg excessive washing down
  • pumping and storing
  • heating
  • capital depreciation of and maintaining equipment and infrastructure
  • materials or products lost in wastewater, for example metals lost by poor control at metal plating facilities
  • meter size charges

Using less water may mean that you can rely fully on the mains supply and not have to pay for a licence to abstract water from the environment. You should review which option is best for your business as you may not need to use high quality mains water for all your activities, for example cooling. See the page in this guide on water use licences.

How much money could you save?

You could save up to 30 per cent of your water costs through simple, low cost actions, eg fixing a leak from a single cold water tap could save you up to £900 per year.

There are also non-financial benefits of using water efficiently. Suppliers and customers are increasingly environmentally conscious, demanding that businesses use natural resources sustainably. By demonstrating your water efficiency you can attract and retain customers and employees. You can also create interest from investors, stakeholders and the media by showing that your business is well managed. See our guide on how to make your business more sustainable.

For financial help on water-saving initiatives, see the page in this guide on finance and support for water efficiency measures.

Analyse how much water you use

The only way to gauge the true cost of your water use is by analysing it systematically. You should:

  • study your water bills – do this over the previous two or three years noting the annual consumption and cost
  • identify any trends or patterns – you may be able to pick out seasonal variations
  • involve your staff, eg you could get them to complete a water use survey
  • produce a water balance – this is a numerical account of where water enters and leaves your business and where it is used
  • carry out a benchmarking exercise and compare your water use to other businesses in your industry sector

For more information on water balances and benchmarking, see our guide on how to monitor your water use.

Once you have identified the amount of water your business uses and where you use it, you should identify where you can make savings. Lowering your utility bills will save you money and give you a competitive edge.

You could draw up a plan that details how you will reduce your water use and when the improvements will be carried out. Download a guide on how to develop a water management plan from the Environment Agency website (PDF, 910K)- Opens in a new window.

If you have an environmental management system in place, you may have already analysed your water-use patterns. See our guide on environmental management systems (EMS) – the basics.

Tips for saving water

Minimising water use in your business can require financial commitment. However, many measures are cheap and simple to implement and could potentially save you up to 30 per cent of your water costs. You could:

  • Only use water when you need to. Record how much water your business uses on a daily or weekly basis to understand your demands. This will help you decide the best ways to save water and money. If you abstract water it will also help you comply with the conditions of your licence. See the page in this guide on water use licences.
  • Educate staff about implementing water-efficiency measures. You could include their roles and responsibilities in a water policy statement, eg to report leaking taps straight away.
  • Get buy-in from management and involve staff with responsibility for facilities, finance and operations in water minimisation measures from the outset. This may form part of an existing environmental policy. See our guides on how to write an environmental policy and making the case for environmental improvements.
  • Appoint a member of staff to monitor water use and identify minimisation opportunities, eg by doing a regular walk-round survey of your business and reading water meters. If parts of your business use a lot of water, consider installing sub-meters. See the page in this guide on how to analyse how much water you use.
  • Buy water efficient new equipment. This may mean a larger initial investment, but it will pay off in the long term. See the page in this guide on finance and support for water efficiency measures.
  • Protect against cold weather-related leaks by insulating pipes and checking them regularly.
  • Investigate alternative water sources, eg harvesting rainwater through a roof catchment or reusing wastewater from wash basins and showers, known as greywater. Once captured, you can use the water where non-drinking water is required, for example to flush toilets.
  • Fit water-minimising controls, eg push taps, low-flush toilets, flow regulators or restrictors. The payback period for installing flush controls on urinals can be as little as five weeks.
  • Review your plans to reduce water use, ideally at least once a year.
  • Consider treating your wastewater to reuse it for industrial uses, toilet flushing and irrigation which do not require water fit for drinking. Using less treated drinking water will save you money. See the page on reducing and treating your trade effluent in our guide on discharging trade effluent.
  • Check your meter size is appropriate to the amount of water you use. If it is larger than you need, you will pay your water supplier more than necessary.
  • Check your meter location and the supplies it measures, eg in industrial and business parks where a neighbouring business may be supplied through your meter. Also check that your meter serial number matches the number on your bills and that you are being billed for your own meter.
  • Fix drips and leaks as quickly as possible.

Your water supplier can provide you with advice on saving water. You can also compare costs and services provided by different suppliers. Find your water supplier on the Water UK website- Opens in a new window.

For more information on facilities such as washrooms, catering and laundry areas, see our guide on how to save water at commercial premises. For information on washing and rinsing processes, see our guide on how to save water at industrial premises.

Finance and support for water efficiency measures

The Enhanced Capital Allowance (ECA) scheme enables you to deduct the whole cost of your investment in water-saving technologies and products from your profits in the tax year that you make the purchase. The scheme is available to businesses that pay UK corporation tax or income tax, and that have enough profits for the allowance to be written off against.

You can claim the allowance when you buy any of the products that appear on the water technology list (WTL). The WTL includes water efficient products from taps to industrial cleaning and leak detection equipment.

Manufacturers and suppliers that wish to include their products on the WTL must meet certain qualifying criteria. The WTL symbol can be used to promote products for sales and marketing purposes.

For more information about buying or supplying water efficient products eligible for ECAs, see our guide on first-year allowances for water efficient technologies.

WRAP (Waste & Resources Action Programme) operates the Rippleffect initiative which provides structured information and support to businesses to help them achieve water efficiency savings.

Water use licences

If you take or store surface water or groundwater from any source, you are abstracting or impounding water. This applies even when water is moved temporarily and returned to the source.

If you abstract or impound water, you may need a licence from the Environment Agency, depending on how much you take. The quantity you are allowed to abstract is controlled to protect both water supplies and the environment.

Surface water and groundwater sources include:

  • rivers
  • streams
  • lakes
  • reservoirs
  • estuaries
  • coastal waters
  • wells
  • springs
  • boreholes

Apply for an abstraction licence

If you abstract more than 20 cubic metres (m³) of water a day from surface water or groundwater, you will normally need an abstraction licence. The licence will specify how much water you can take from a location over a period of time.

You do not currently need a licence to abstract water:

  • if you take less than 20m³ a day
  • for certain land drainage operations
  • to fill ships or boats with drinking or ballast water
  • if you take more than 20m³ a day to test for the presence, quantity or quality of water underground, with the Environment Agency’s consent
  • in emergency situations, eg to fight a fire
  • under an exemption from water abstraction licensing

Some exemptions from abstraction licensing are due to be removed in 2012. You can contact your local Environment Agency office for a full list of exemptions. Find Environment Agency office contact details on the Environment Agency website- Opens in a new window.

Before applying for an abstraction licence, or if you want to change an existing licence, you should:

You may also need to carry out an environmental impact assessment (EIA) before you submit your application. For example, you will need an EIA if you want to abstract more than 20m³ a day for an agricultural water management project including all forms of irrigation.

Read about EIAs for water use developments on the Environment Agency website- Opens in a new window.

Find out how to apply for an abstraction licence on the Environment Agency website- Opens in a new window.

You may also need an abstraction or impoundment licence if you wish to generate hydroelectricity. See the page on hydroelectric power in our guide on how to generate your own renewable energy.

Apply for an impoundment licence

If you intend to impound (store) water on a watercourse, for example to create a reservoir, you will need an impoundment licence from the Environment Agency.

You will also need permission if you want to construct, alter or remove an existing impounding structure, such as a dam.

Find out how to apply for an impoundment licence on the Environment Agency website- Opens in a new window.

Pay abstraction and impoundment licence charges

You will have to pay annual charges for most full licences. You can read more about abstraction charges on the Environment Agency website- Opens in a new window.

You will not have to pay an annual fee for:

  • a temporary abstraction licence for abstractions over 20m³ a day for a period of fewer than 28 consecutive days
  • a transfer licence for moving water from one location to another with no intervening use
  • an impoundment licence for constructing, altering or removing impoundment structures such as dams

Transfer a licence

If you want to take over an existing licence to abstract or impound water, you should contact the Environment Agency. You should also agree with the licence holder how it is to be transferred or divided.

Register reservoirs

If you have a reservoir that is capable of holding more than 25,000m³ of water above natural ground level, you must register it with the Environment Agency. You must also appoint a panel engineer to supervise and inspect it.

Find information about reservoir safety and how to register your reservoir on the Environment Agency website- Opens in a new window.

Water use and efficiency legislation

This page provides links to the full text of key pieces of environmental legislation relating to water use and efficiency. The websites hosting the legislation may list amendments separately.

If you are setting up an environmental management system (EMS) for your business, you can use this list to start compiling your legal register. Your legal adviser or environmental consultant will be able to tell you if other environmental legislation applies to your specific business.

For more information about EMS, see our guide on environmental management systems (EMS) – the basics.

Find other current environmental legislation that may affect your business on the NetRegs website- Opens in a new window.

Find guidance about future environmental legislation on the NetRegs website- Opens in a new window.

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Every effort has been made by the author(s) to ensure this article’s accuracy but it does not constitute legal advice tailored to your circumstances. If you act on it, you acknowledge that you do so at your own risk. We cannot assume responsibility and do not accept liability for any damage or loss which may arise as a result of your reliance upon it.

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