Utility Bill Errors
It may come as a surprise, but approximately 80% of businesses are overpaying on their utility bills. Complex billing structures, hidden fees, and simple billing errors contribute to inflated costs that go unnoticed by most companies. A professional utility bill audit can uncover these issues and secure potential refunds, significantly reducing your monthly expenses.
Why So Many Businesses Overpay
Utility bills contain numerous line items, each representing different charges and fees. Unfortunately, these bills are rarely transparent, making it difficult for businesses to identify mistakes. In addition, businesses may not realize when they are being charged at higher commercial rates or penalized for peak demand without notice.
What an Audit Can Uncover
A utility bill audit is a powerful tool for uncovering billing errors and unnecessary charges that can significantly impact a business’s bottom line. Here are some of the key areas where a professional audit can reveal hidden savings:
- Incorrect Rate Applications: Many businesses are unknowingly charged incorrect rates due to errors in account classifications, outdated contracts, or misapplied tariffs. For instance, a commercial property might be billed at a higher industrial rate, or an account classified under an outdated rate plan could miss out on more favorable pricing. An audit can identify these discrepancies and ensure that you are charged the correct, most cost-effective rate.
- Unwarranted Surcharges: Utility bills often include various surcharges, such as administrative, environmental, and capacity charges. While some of these fees are standard, others may be applied incorrectly or redundantly. For example, some utility companies may double-charge for environmental fees or add unnecessary service fees. By carefully examining each line item, a utility bill audit can remove any unwarranted surcharges, helping you avoid paying for services or fees you don’t need.
- Excessive Demand Charges: Demand charges, which are based on the highest level of power drawn during a billing period, can be a significant expense for businesses with high peak energy usage. Errors in demand charge calculations, such as incorrect meter readings or misinterpretation of usage data, can lead to excessive charges that don’t reflect actual energy demand. An audit can verify demand charge calculations and recommend changes in usage patterns or rate structures to reduce these charges moving forward.
- Overestimated Meter Readings: Utility providers sometimes estimate usage based on historical data or average consumption, rather than using actual meter readings. This can lead to inflated bills, particularly if your usage has decreased. An audit ensures that only actual, accurate meter readings are used to calculate your charges, and it helps address any discrepancies between estimated and actual consumption.
- Incorrect Billing for Time-of-Use Rates: Many businesses are on time-of-use plans, where rates vary depending on the time of day and peak periods. Errors in time-of-use calculations, such as misrecorded usage periods, can result in your business being charged peak rates during off-peak hours. An audit can identify these miscalculations and help you recover overcharges due to incorrect time-of-use billing.
- Misapplied Taxes and Fees: Utility bills often contain state and local taxes, franchise fees, and regulatory charges. Sometimes these taxes and fees are incorrectly applied, particularly for businesses eligible for tax exemptions. A professional audit can review these line items to ensure you’re only paying applicable taxes and fees, and can even help you apply for any relevant exemptions.
- Duplicate Billing: In some cases, utility companies accidentally charge businesses for the same service or account more than once, leading to duplicate billing. An audit can catch these duplicate charges and work with your utility provider to rectify the error, ensuring you’re only paying for the services you actually use.
By uncovering these issues, a utility bill audit conducted by National Utilities Refund not only identifies past overcharges but also provides recommendations to prevent future billing errors.
Our Utility Audit Process
At National Utilities Refund, our utility bill audit process is thorough and efficient. Our team reviews each line item, verifies rates, and identifies any discrepancies. With no upfront cost, our contingency-based model ensures that you only pay if savings are found. Contact NUR today to discover how much your business could be saving.
