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What Are Maximum Daily Demand Charges On Water For Business?
Water audits reveal that there are hundreds of business water customers in the Anglian water region that are paying substantially more than they need, probably due to the fact they are not clued up on the specific maximum daily demand (MDD) charges that apply to business water customers.
Businesses will recognise that an understanding of sometimes complex and hidden charges and tariffs on their water and wastewater bills is key to unlocking welcome ongoing water and wastewater savings.
So… what areas cover the Anglian water region?
Anglian Water covers the largest geographical area of any water company in England and Wales, spanning approximately 27,500 across the east of England.
It serves over six million customers from the Humber estuary in the north to the Thames estuary in the south, extending from Buckinghamshire to the east coast, including Hartlepool.
Key areas and counties within the Anglian Water region include:
Eastern England:
Norfolk, Suffolk, Cambridgeshire, and Essex.
East Midlands:
Lincolnshire, Northamptonshire, Rutland, and parts of Nottinghamshire and Leicestershire.
Home Counties:
Bedfordshire, Buckinghamshire, and parts of Hertfordshire.
Specific Areas:
Including Peterborough, Milton Keynes, north/north-east Lincolnshire and small parts of South Yorkshire and North London (around Upminster)
Services Provided:
Water Supply & Sewerage: Provides both water supply and water recycling (sewerage) to most of this region.
Water Only:
In certain areas, particularly parts of Essex and Suffolk, Anglian Water provides sewerage services while water is supplied by Essex & Suffolk Water.
Hartlepool:
Provides water services to the Hartlepool area.
The region includes 1,257 km of coastline and operates 1,250 water and water recycling treatment works.
So… what are MDD water charges and how can I reduce them?
MDD water charges are a type of (usually) business-specific water tariffs based on the maximum amount of water (measured in cubic meters) that a site requires in a single 24-hour period.
This charge is common for high-volume users, where the wholesaler (Anglian Water) reserves a set capacity in the network for the customer.
MDD charges are generally applied to sites that use 0.1 megalitres or more per day, or ten megalitres or more per annum.
How to reduce MDD water charges
Reducing MDD charges involves lowering your peak usage, reviewing historical data, and, in some cases, negotiating with your provider.
Request a Lower MDD Limit:
If your peak usage has dropped, you can ask your retailer to lower your site’s MDD once in a 12-month period.
Provide Evidence of Lower Usage:
Provide data showing that your peak daily consumption has not exceeded a lower threshold in the last 12 months.
Review Data for Exceptional Days:
If your peak usage was driven by a one-off event, such as an unusual cleaning requirement or a maintenance project, you may be able to exclude this day from the assessment, allowing for a lower, more realistic MDD.
Investigate Leaks:
Unexplained increases in daily consumption can trigger higher MDD charges. Check for leaks regularly.
Implement Water Efficiency Measures:
Use water more efficiently daily to reduce the overall peak, such as installing water-saving devices.
Check for Non-Aligned Logger Data:
If logger data does not match your meter reading, it may be wrongly indicating a high peak. Check this with your supplier, especially if it happens for two consecutive months.
Warning: If you lower your MDD and then exceed that new level within 12 months, the higher charge will likely be backdated.
What is considered an exceedance?
An exceedance occurs when your daily peak demand is greater than 1m3 of the current MDD. If this happens, your supplier may increase your MDD and you may be back billed for the higher capacity
Note: The examples, such as the 0.1 megalitres threshold, primarily refer to Anglian Water policies, but similar capacity charges exist for other large-volume business users