Utility Billing Miscalculations

Rising utility bills should worry everyone. One of the main reasons utility bills rise is billing miscalculations or errors. If you aren’t careful, substantial utility bills due to billing errors can cripple your company. Your energy management department should audit the accounts and identify errors. Here are the top utility errors most companies experience.

Incorrect Tariffs

Utility bills attract taxes. Ordinary taxes include federal, state, country, and franchise. If your utility company charges you the wrong tax, raise a complaint. Ensure that your office electricity prices are correct. Conduct a careful review to ensure that you are getting accurate billing.

Utility Rate Options

Utility companies offer several rate options. Common ones include small, medium, as well as large. Others have the day option, demand versus supply, and control option. If you want to achieve substantial savings, choose an option that fits your explicit company.

Wrong Classification

The wrong classification leads to utility billing errors. You must be careful with the type that appears on your bill. Typical varieties include residential, commercial, as well as industrial. Other classifications include elderly, special zoning, etc. Be sure to select the proper classification or category to avoid being overcharged.

Meter Reading Errors

Meter reading errors are common. They have occurred to several SMEs. For instance, the bills will be higher if you read them backward. You should countercheck the meter reading before paying your utility bills.

Zero Usage Meters

If a meter is used occasionally or abandoned, it can attract zero-meter reading.  A careful review should be done to have these meters removed from your account in these cases. This can save you a substantial amount of money.

Late Fees

A late fee in your bill could signal a billing error. In this case, consider reviewing the billing policy before making a formal complaint. For more clarification, consider calling your utility company.

Billing Dates

Review your bills to ensure that the billing rates and usage are correct. A gap in your account could signify an error. Still more, overlap in terms of dates may mean mistakes. Check the bills before contacting your utility company.

Load Factors

Usually, the load factor in your bill should not be more than 1. If it exceeds 70 percent, contact your utility company for further bill interrogation.

Abnormal Usage

An abnormal usage may be caused by usage spikes, leakages, or equipment malfunctioning. Check to see if your appliances are working correctly. We should investigate these cases for further action.

Other Billing Errors

Additional billing errors should be investigated to save money on utility bills.

  • If you discover that the power factor is not more than 0.9
  • Demand changes can also signify billing errors
  • Duplicate line-item charges. Your utility company may accidentally bill you one item twice in some instances. Carefully review your bills to spot these duplicated items.

Read more: Best Possible Ways On How to Reduce Your Utility Bill This Year.

The Bottom-Line

There are several types of utility billing miscalculations/errors. Your company should be aware of these errors, from meter readings to incorrect tariffs. The above are the top billing errors your energy management department should familiarize themselves with.


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