How Companies Secretly Drain Billions of Litres of Public Water in Drought-Hit England

England’s public water supply faces mounting pressure as businesses consume 2.6bn litres daily, with less than 1% of firms utilizing water volumes equivalent to the daily needs of 10 million people, according to data from Mosl. This industrial consumption occurs while three-quarters of the country experiences drought conditions and millions of households confront strict hosepipe bans. Mosl, the organization operating England’s business water market, reported that businesses account for roughly 30% of total public supply use, with two-thirds of that volume concentrated in water-stressed regions.

Industrial Water Use and Commercial Secrecy Frustrate Regulators

Tracking industrial consumption remains difficult due to widespread commercial secrecy and regulatory gaps, according to environmental regulators. The Environment Agency and water regulator Ofwat stated that a lack of transparent data prevents the water sector from effectively planning for growth industries like datacentres and hydrogen production. Mosl submitted written evidence to a House of Lords committee highlighting what it described as high volumes of industrial water wastage that remain uninhibited by current government frameworks. Among public supply users, heavy industries such as oil refineries, chemical plants, and paper mills rank as the largest consumers, with some facing no formal mandates to reduce usage.

Data Gaps and Metering Shortfalls Across English Businesses

The broader landscape of commercial water consumption lacks complete oversight because one in 10 businesses in England remain unmetered, meaning their usage is neither measured nor reported. Among businesses that do have meters, only 11% utilize smart meters to track consumption in real time. Mosl chief executive Sarah McMath told the House of Lords committee that even the data collected by Mosl cannot be freely shared with government departments without bespoke legal agreements. McMath stated that Mosl is collaborating with Ofwat to modify data-sharing restrictions so information can flow freely when it benefits the environment and society.

Did you know? According to Mosl, anyone in England can take up to 20,000 litres of water a day from a stream, borehole, or spring without needing a licence or reporting it, a threshold affecting an estimated 850,000 rural and agricultural operations.

Diverging Views on Future Water Demand and Reductions

Official water resources planning assumes that business water consumption from the public supply will drop by 9% by 2038 and 15% by 2050. However, the trade body Water UK disputes these projections as unrealistic given rising demand from new housing developments, datacentres, and hydrogen facilities. Water UK argues that official forecasts explicitly exclude the massive water requirements of fast-growing datacentres—such as a single UK facility using 219m litres a year—and prioritizes low water bills over infrastructure resilience. Meanwhile, water companies across England continue losing approximately 2.2bn litres of water every day through leaking pipes.

Frequently Asked Questions

How much water do businesses use in England?

Businesses consume 2.6bn litres of water daily from the public supply, accounting for about 30% of total public supply use, according to Mosl.

Why is tracking industrial water use difficult?

Regulators point to commercial secrecy, a lack of mandatory reporting across all sectors, and gaps in metering—with 10% of businesses unmetered and only 11% using smart meters—as primary obstacles to accurate tracking.

How Companies Secretly Drain Billions of Litres of Public Water in Drought-Hit England

What are the main industrial users of public water?

The largest public water users include oil refineries, chemical plants, paper mills, and soft drink manufacturers.

Are businesses required to report water taken directly from rivers or boreholes?

While direct abstraction from rivers and lakes is regulated by the Environment Agency, individuals and organizations can take up to 20,000 litres a day from a stream, borehole, or spring without a licence or reporting requirement.


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