A recent study by Clearsight Energy reveals that private hospitals, schools, and various other businesses across England could achieve significant savings by switching their water suppliers. The research, which focuses on potential financial benefits from supplier changes, highlights how deregulation of the water market in 2017 has opened doors for cost reduction.
Private Hospitals Lead in Potential Savings
Topping the list are private hospitals, which could save an average of £8,572 per establishment annually by switching suppliers. With 218 private hospitals in the UK, this equates to potential combined savings of £1.86 million each year. Private hospitals typically use around 46,977 cubic metres of water annually, equivalent to 657,678 loads of washing.
Substantial Savings for Schools and Farms
Schools across England also stand to benefit considerably, with potential annual savings of £974 per school. With 24,442 schools, the education sector could save over £23.8 million collectively. This amount could cover 8.8 million school meals, equivalent to providing lunches for 125 schools for an entire academic year.
Poultry farms, using about 29,561 cubic metres of water per year, could save £5,394 annually per farm. Across the UK’s 2,337 poultry farms, this totals £12.6 million in potential savings. Dairy farms, on the other hand, could save £1,638 each, amounting to £12.7 million in total savings for the sector.
Restaurants and Other Sectors
Restaurants, consuming approximately 14,508 cubic metres of water each year, could save £2,647 per establishment. With 42,477 full-service restaurants in the UK, the sector could achieve a combined annual saving of around £112 million.
Beauty salons, cinemas, and office buildings also have notable potential savings. Beauty salons could save £274 per year, leading to a collective saving of £13.2 million for the sector. Cinemas, using around 729 cubic metres annually, could save £133 each, with a total potential saving of £112,480 across 846 cinemas. Office buildings could save £88 each per year, totalling £377,927 in savings across 4,308 buildings.
Annual Water Savings for Businesses by Switching Suppliers
| Rank | Business | Avg. Yearly Water Usage (m³) | Highest Yearly Supplier Cost (UK) | Price Difference: Highest vs. Lowest Supplier | Potential Savings Per Location (10%) | Sector Savings Potential (10%) |
| 1. | Private Hospitals | 46,977 | £159,327 | £130,051 | £8,572 | £1,868,774 |
| 2. | Poultry Farms | 29,561 | £100,259 | £81,836 | £5,394 | £12,606,405 |
| 3. | Restaurants | 14,508 | £49,204 | £40,163 | £2,647 | £112,451,280 |
| 4. | Dairy Farms | 8,976 | £30,445 | £24,851 | £1,638 | £12,858,300 |
| 5. | Schools | 5,340 | £18,112 | £14,784 | £974 | £23,817,860 |
| 6. | Beauty Salons | 1,502 | £5,096 | £4,159 | £274 | £13,276,363 |
| 7. | Cinemas | 729 | £2,471 | £2,017 | £133 | £112,480 |
| 8. | Office Building | 481 | £1,631 | £1,331 | £88 | £377,927 |
| 9. | Barber Shops | 306 | £1,038 | £847 | £56 | £1,061,114 |
Impact on Operational Costs
The study underscores the significant potential for businesses to reduce operational costs by reassessing their water supply choices. Clearsight Energy’s spokesperson commented on the findings: “This study highlights a significant opportunity for businesses across England to reassess their water supply choices, potentially unlocking substantial savings with sectors like cinemas and private hospitals poised to benefit the most.”
The spokesperson also noted the broader implications for schools: “Many people might not realise that schools have to pay their own bills. They receive core funding from the government to aid essential running costs, including salaries for teachers and staff. However, the schools are still responsible for budgeting, and even though savings can change depending on where a school is based in the country, these potential savings could still provide equipment or educational trips.”
The analysis makes it clear that, although savings vary depending on the location and size of the business, switching water suppliers could result in significant financial benefits across various sectors in England.
For more information, visit https://www.clearsightenergy.com/.