Partner Article

North East companies are flushing profits down the drain

Pardon the pun, but North East companies are literally flushing unimaginable amounts of water – and potential profits – down the drain.

Utilitywise has been assessing water usage in companies across the region, and have found that a significant number of all commercial water charges are incorrect.

Furthermore, by analysing water use and correcting areas of wastage, companies across the region could potentially push savings into the seven-figure territory.

For example, a faulty Passive Infra-Red [PIR] sensor on a urinal can cost anywhere from £200 to £15,000 a year. A constant 5mm trickle of water can cost £1,300, while a 2mm trickle can cost £350.

According to the Office for National Statistics, there are an estimated 63,000 active businesses in the North East. If each of these companies had a faulty PIR sensor at just the lowest figure of £200, that could see an almost £13 million hit on annual profits for businesses across the region.

There are two levels to the problem. Firstly, inappropriate metering which means businesses are being charged more than they should be; if a meter has been fitted that is too large, then the costs go up.

Secondly, leaks and inefficient equipment are commonplace. They are often on the ‘client-side’ of the meter, meaning businesses are paying through the nose for water they sometimes aren’t even seeing.

But it doesn’t have to be this way. By analysing and correcting over-billing and water leaks, we have saved one particular client with five sites £36,000, and a supermarket chain with nearly 500 stores has saved £1.8 million.

Water companies by default assume that 95 per cent of the water used returns to the sewer. However, where we can prove this is not the case, it is possible to reduce the ‘used water’ charge.

Using our expertise in the water industry, we are able to challenge water company back charges and disputes, ultimately saving companies’ hard-earned cash from spiralling out of control and down the plug hole.

This was posted in Bdaily's Members' News section by Utilitywise .