All NewsEducationTVBrokers
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
All NewsHome
← Back to Commodities & Energy

Companies Use Billions of Litres of Public Water Amid Drought

Created at 4 Sep · 6:06 AM1 source↑ Market-relevant
IN SHORT

Businesses in England consume 2.6 billion litres of public water daily, with two-thirds of this use in water-stressed areas, while millions of households face hosepipe bans. Major users like oil refineries and chemical plants are not required to cut consumption, and data on their usage is hampered by commercial secrecy.

Key Numbers

2.6bn litresdaily business water use from public supply
30%of public supply use by businesses
75%of England in drought
10 millionpeople's daily needs less than 1% of business use
219m litresannual water use by a single UK data centre
2.2bn litresdaily water loss through leaking pipes by water companies
9%projected fall in business water use by 2038
15%projected fall in business water use by 2050
1%potable water use at ExxonMobil's Fawley refinery
10%businesses not metered for water use
11%metered businesses with smart meters

Who's Involved

Mosl
organisation operating England’s business water market
ExxonMobil
operator of Fawley refinery, disputing water use figures
Sarah McMath
Chief Executive of Mosl
Defra
Department for Environment, Food and Rural Affairs
Environment Agency
regulator calling for mandatory water use reporting
Ofwat
water regulator working with Mosl on data sharing
Water UK
trade body arguing against government reduction targets
Richard Benwell
Chief Executive of Wildlife and Countryside Link
Feargal Sharkey
water campaigner critical of regulatory ineptitude

↳ Why This Matters

The extensive use of public water by businesses, particularly in water-stressed regions and during drought conditions, raises critical questions about regulatory oversight, corporate responsibility, and the sustainability of water resources for both industry and the public. The lack of transparency and data hinders effective planning and potentially exacerbates water scarcity issues.

Key facts

  • Businesses in England use 2.6 billion litres of public water daily, with 30% of total public supply use.
  • Two-thirds of business water consumption occurs in water-stressed regions.
  • Major industrial users include oil refineries, chemical plants, and paper mills.
  • Data on business water usage is difficult to track due to commercial secrecy and lack of metering.
  • ExxonMobil's Fawley refinery was identified as a large user, though the company disputes the figures.
  • Regulators and environmental groups are calling for mandatory reporting and better water management.

Businesses across England are consuming billions of litres of public water daily, even as millions of households face hosepipe bans and three-quarters of the country is in drought. Companies account for approximately 30% of public supply use, with a significant portion of this consumption occurring in water-stressed regions.

Data on industrial water use is reportedly difficult to obtain due to 'commercial secrecy,' frustrating regulators and hindering effective planning. The largest users identified include oil refineries, chemical plants, and paper mills, some of which are not subject to mandatory consumption cuts. Mosl, the organization managing England's business water market, cited the ExxonMobil-operated Fawley refinery as a major user, suggesting significant water wastage not disincentivized by current regulations.

ExxonMobil has disputed these figures, citing commercial confidentiality and stating that the majority of water used is for cooling purposes, with potable water accounting for less than 1% of its total consumption. Mosl has since removed some of its data and maps from public view. The overall picture of business water use remains incomplete, with a notable percentage of businesses unmetered or lacking smart metering technology.

Mosl's Chief Executive, Sarah McMath, indicated that sharing data, even with government departments like Defra, requires bespoke agreements, though efforts are underway with regulator Ofwat to facilitate data sharing for environmental and societal benefit. The Environment Agency and Ofwat are advocating for mandatory reporting of current and projected water use across all sectors to enhance water security.

Water resource planning currently assumes a reduction in business water consumption by 2038 and 2050. However, the trade body Water UK argues these assumptions are unrealistic given growing demand from sectors like data centers and hydrogen production. They advocate for water companies to plan for projected demand rather than adhere to government reduction targets. Businesses can also abstract water directly from natural sources, with some abstraction occurring without licenses or reporting.

Environmental groups have criticized the water usage by petrochemical and fossil fuel companies, linking it to the climate crisis. The government, through Defra, states it is taking action to secure water supplies, including plans for new reservoirs. Meanwhile, water companies are losing substantial amounts of water daily due to leaking pipes.

Frequently asked questions

Businesses in England use approximately 2.6 billion litres of public water daily, accounting for about 30% of the total public supply.

The largest users include oil refineries, chemical plants, and paper mills.

Regulators cite a lack of data and 'commercial secrecy' as major obstacles, with many businesses unmetered or lacking smart meters.

ExxonMobil disputes the figures provided by Mosl, stating its water use is commercially confidential and that most water is used for cooling, with potable water representing less than 1% of its total consumption.

What Happens Next

01Mosl plans to ask a House of Lords committee to redact parts of its evidence.
02Mosl is working with Ofwat to change data sharing agreements.
03The Environment Agency is working towards a 9% reduction in business water use from public supply.
04Defra is planning to build nine reservoirs and invest in infrastructure.
CME Headlines
  • Performance Bond Requirements: Agriculture — Effective September 04, 2026
    3 Sep · 10:35 PM
  • Performance Bond Requirements: Agriculture and FX — Effective September 04, 2026
    3 Sep · 10:35 PM
  • Corn futures post historic August rally ahead of USDA report.
    3 Sep · 9:28 PM

How It Developed

Businesses in England use 2.6 billion litres of public water daily.
Two-thirds of business water consumption is in water-stressed areas.
Major users include oil refineries, chemical plants, and paper mills.
ExxonMobil's Fawley refinery is identified as a significant user.
Mosl cited high water wastage in industry not disincentivized by regulation.
ExxonMobil disputed figures, citing commercial confidentiality.
Mosl removed data and maps from its website during reporting.
ExxonMobil stated most water is for cooling, with potable water less than 1% of use.

Sources

T1
Revealed: how companies ‘secretly’ use billions of litres of public water in drought-hit EnglandThe Guardian

Related Stories

Kenya faces milk shortage impacting beloved chai tea
4 Sep · 12:41 AM
Australian ski resorts close early due to heat and El Niño
4 Sep · 6:40 AM
Europe Faces Winter LNG Scramble Amid Low Storage and Supply Disruptions
3 Sep · 10:11 AM
India's rooftop solar growth uneven, testing energy goals
3 Sep · 9:05 PM
Toxic wildfire haze spreads across South East Asia as 'super' El Niño intensifies
3 Sep · 11:56 AM