A utility bill audit is a systematic analysis of a company’s utility invoices that involve invoices for power, gas, water, and waste to monitor billing mistakes, assess rate schedules, and provide recommendations for more savings. It is different from an energy audit that aims to reduce energy expenditure by increasing efficiencies. An internal department or an external consultant can perform the review. So, why do you need to audit the utility bills? Find out some simple reasons below.
How Do Contractors Help Save You A Lot?
- Specialized consultants can find more mistakes and save even more.
- Since they are experienced in various contracts and thus possess deep knowledge about the same, also contractors can bargain better with service suppliers.
- Contractors have developed partnerships with utilities and know how to report adequate knowledge and process utilities more efficiently.
Types of Utility Bills
- Electricity and gas bills
- Water/Sewage and garbage disposal
- Cable TV
- Phone services
However, in this post, you will mainly learn about the benefits you can reap by doing a utility bill audit.
What is an Energy Bill Audit?
A comprehensive analysis of the power and gas bill requires an energy bill examination (s). The analysis aims to guarantee that you pay the lowest possible price for your energy consumption, which implies the cost negotiated with your local power supply or retail provider.
Besides, to first check their legitimacy, an energy bill analysis would concentrate on the various costs and expenses you probably have on your energy bill(s), then decide what may be done to decrease them.
Reasons to Opt For Audit of Utility Bills
You are aware of the steps that utility bill audit consultants will follow, now you should know about the reasons to understand how auditing can save you thousands of bucks.
The Main Reason
On average, 75% of firms are billed more than what they have consumed or had options to save on energy bills by measurement errors and anomalies billed by utility companies. So, why pay more when you can settle for less and save a lot of bucks?
Avoid Potential Errors
Utility bills may often represent a variety of irregularities, like telecommunication, television, and the internet. For example, many electrical and water meters are only visually read and may push electricity, water, and sewer bills soaring with a single wrong digit.
Even worse, to prevent getting cut off, those unfairly fined are typically compelled to pay the hefty bill. Under certain situations, even though the service provider acknowledges that it is inaccurate, only a future “credit” would be issued, and they won’t refund the overcharged amount.
Cost Saving Opportunities
Improving the organization’s energy efficiency will ultimately offer substantial business advantages. As a part of the company energy audit cycle, you will figure out where energy may get wasted, enforce an action plan, and continuously reduce monthly spending.
As part of the utility analysis and on an on-going basis, thorough bill verification should be carried out. They conduct a detailed, retrospective utility bill analysis (going back as far as six years) to enable companies to claim back the dues.
Having a clear view of how power is used for the business can help inform and support decision-making at the board and operations level. Getting accurate information and analysis from which business choices are made ensures that you are more likely to make good decisions.
Reduce Energy Costs
An energy expert can reduce the energy expenses by 25 percent or more after completing an energy audit. If it reduces additional expenses, energy conservation helps most firms. You will come up with a solution to become a more energy-efficient and cost-effective company by knowing where you are on your company’s energy management path.
Don’t Lose Out On 10% Savings
By auditing energy usage and adopting guidelines to update facilities and change procedures, the owners of a typical small to mid-sized industrial facility can save 10 percent on their electricity bill and around $40,000 yearly, according to research published by the U.S. Department of Energy Program.
Monthly vs. One Time Audit
Big firms commonly consider monthly audits were cutting off even a little bit of energy or gas bill might save hundreds and even thousands of dollars. Whereas, any business can go with one time audit, in which the company sends bills to the consulting agency, and then they review and advise accordingly.
To Sum Up
Many more prominent corporations have regularly checked their electricity costs, consumption, etc., but for everyone else, it is good to delegate it to another agency. So, it’s totally up to you whether you want to hire a person, i.e., on payroll, or outsource the job.