Since the deregulation of the UK water market, businesses are free to choose their water supplier. It was seen as a way to promote competition and reduce costs. But many businesses still pay too much in the business water sector—or have inefficient contracts—because the procurement of water remains an overlooked component when looking at costs, unlike energy.
Unlike energy, water is viewed as a fixed cost. Contracts roll over, meters remain unverified, and miscellaneous costs go unchecked. Over time, this inaction leads to significant financial leakage and unnecessary budgeting errors in water procurement.
For industries where water companies supply large quantities—such as manufacturing, hospitality or healthcare—there’s no small amount the industry can save. Getting to the procurement stage and identifying missed savings opportunities is smart; it means losses are already limited.
The smart way to procure is to identify process errors (where mistakes generally happen) in an industry with a relatively new market and to recognise businesses’ water procurement issues before they impact your budget. Knowing how to avoid errors in water supply contracts? crucial in ensuring procurement does not negatively affect your bottom line. Doing a strategic review of contracts, data and water suppliers’ performance will change results immediately. Below is a quick-to-use checklist of the most common mistakes companies make when procuring water—and how to fix them.
1. Automatically Renewing Contracts Without Checking the Market.
Many companies automatically renew their business water service contracts, which may result in jumping to a higher tariff. Other companies may simply miss the window to renew or think that their water supplier is still the most competitive in today’s market.
The reality is that prices in the water companies market change frequently, and suppliers offer better pricing for new customers every day. When a contract ends and renewal happens passively, negotiation begins from a place of weakness—one of the biggest water infrastructure procurement pitfalls. E for Energy tracks renewal cycles to obtain timely, market-based contracts for its clients.
2. Selecting a Supplier Based on Price Alone.
No one can resist a low tariff, but a low tariff is not always true value. Some water suppliers may offer low rates but poor billing accuracy or weak dispute resolution. You can’t put a price on the administrative cost of bad service, which often outweighs the initial savings.
E for Energy qualifies water companies based on both pricing and reliability. This approach ensures a reasonable level of service and prevents businesses water procurement issues that arise from poor supplier selection.
3. Neglecting Meter Accuracy and Consumption Details.
Faulty meter readings are the main culprits of overbilling. It is a common practice for commercial accounts to rely on estimated readings or outdated meters, leading to inflated water bills. Even a small billing error can cause significant cost discrepancies.
Regular water audits and meter verification quickly identify leaks and accounting inconsistencies. E for Energy verifies meter data and highlights inefficiencies so clients can recover overpayments and avoid budgeting errors in water procurement.
4. Managing Separate Contracts for Several Sites.
Companies with multiple sites frequently have different suppliers and independent renewal dates, resulting in confusion and lost savings. When contracts are consolidated, administrative functions are simplified, water bills are standardised, and businesses gain increased negotiation power.
E for Energy specialises in aligning multi-site contracts, giving companies clear visibility of their portfolio and better rates as a unified business unit—reducing water infrastructure procurement pitfalls across locations.
5. Overlooking Non-Consumption and Hidden Fees.
Water bills consist of more than just consumption fees—they include drainage, wastewater, and fixed service charges. You need to be careful while paying because they are quite often inaccurate or miscalculated. If a business doesn’t analyse each line item, it may accidentally pay for services it doesn’t use.
E for Energy prudently analyses all utility bills, identifies unused services, and confirms only legitimate costs remain. This attention to detail helps businesses prevent budgeting errors in water procurement and ensures complete transparency.
6. Underestimating Sustainability and Efficiency.
Efficiency is not just a good cause—it’s financially wise. Businesses are often hesitant to implement operational improvements such as smart metering, leak detection, and low-flow fittings. These upgrades dramatically reduce usage and costs while avoiding long-term businesses water procurement issues.
E for Energy understands that sustainability has entered the procurement process. Integrating these measures helps clients improve ESG goals, reduce costs, and understand How to avoid errors in water supply contracts? through sustainable management.
7. Neglecting to Monitor Contract End Dates.
A surprising number of organisations let renewal dates slip. Missing one renewal can trigger an automatic extension at higher rates. Keeping a centralised log of contracts is essential to avoid such water infrastructure procurement pitfalls.
E for Energy provides continual monitoring with renewal alerts and negotiates improved terms on behalf of clients. This proactive oversight eliminates budgeting errors in water procurement linked to forgotten contract dates.
8. Not Conducting Regular Audits of Water.
Costs escalate proportionately through leaks, mis-billed drainage, or inactive meters. Regular water audits identify these problems before they escalate into larger expenses. A comprehensive audit covers meter accuracy, tariff reviews, and supply validation.
E for Energy conducts thorough site audits that generate immediate savings and prevent unexpected overcharges. Regular auditing is one of the best defences against recurring businesses water procurement issues.
9. Valuing Water Procurement as an Insignificant Administrative Expense.
Many finance teams focus on electricity or gas expenditures but overlook business water as a strategic cost. The procurement of water can yield savings equivalent to, or greater than, energy if actively managed.
It requires the same diligence—supplier data collection, contract comparison, and performance evaluation. E for Energy’s structured approach applies this rigour to every engagement, addressing hidden inefficiencies and water infrastructure procurement pitfalls.
10. Fully Relying on Internal Knowledge.
Many procurement teams handle multiple categories—energy, gas, waste—without access to live market data. Specialist consultancies like E for Energy bring expertise, negotiation strength, and insight that internal teams may lack.
A relationship with experts experienced in business water ensures contracts represent value and supplier performance remains strong. This collaboration eliminates budgeting errors in water procurement and minimises risk exposure.
11. Always Review Existing Contracts.
Signing a contract is not the end of the process. Consumption patterns and supplier performance must be reviewed periodically. Operational shifts, seasonal demands, and billing adjustments can all affect efficiency and cost.
E for Energy tracks contracts after signing to ensure compliance and optimise pricing over time—helping businesses learn How to avoid errors in water supply contracts? through regular oversight.
12. Not Integrating Water Purchases Into a Larger Utilities Strategy.
Water procurement shouldn’t be isolated from broader sustainability or energy strategies. When water, electricity, and gas are procured together, businesses gain bulk negotiation power and better forecasting accuracy.
E for Energy provides integrated utility solutions so businesses manage all utilities under one cohesive strategy, reducing duplication and preventing water infrastructure procurement pitfalls across all resources.
Water procurement may be commonplace, but it directly affects profitability. The mistakes identified above—auto-renewals, missed audits, and businesses water procurement issues—often remain hidden until costs escalate. Once addressed, businesses gain visibility, control, and confidence.
E for Energy enables clients to transform their procurement process into a proactive, data-driven system. We analyse consumption, benchmark water companies and water suppliers, and validate water bills so every charge is accurate and every savings opportunity is realised.
In a time of inflation and tight margins, managing hidden costs is just as vital as driving revenue. Proactive business water procurement strengthens budgets and ensures operational transparency. Don’t let inefficiencies drain profits—contact E for Energy today for a complete review of your contracts and find out how to avoid errors in water supply contracts? while avoiding costly water infrastructure procurement pitfalls.