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Utility tariffs specifically state that outside certain very basic responsibilities on their part, the onus is on the customer to ensure that they are not paying more than necessary for the services they receive.
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| INTRO > WHY AUDIT? > HOW OVERCHARGES OCCUR > THE PROCESS > |
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WHY AUDIT?
Overcharges can result from errors in any aspect of the billing process: data input, meter malfunctions or mis-reads, calculation mistakes, or improper application of rates or contract pricing.
Utility company tariffs can be so dynamic and complex that we have seen - more than once - where a utility company’s invoices did not accurately reflect a proper implementation of their own tariffs.
For companies with dynamic site counts, an overcharge can even be as simple as bills continuing to be generated for services the client thought were terminated.
Other times a customer moves into a facility and inherits the rate code from the previous tenant – which may be causing a higher charge than necessary.
These are overcharges that are the result of some type of error. But where we really earn our money is when we figure out a way to utilize the utility’s own pricing structure to our client’s advantage.
For example: Let’s say that you occupy two adjoining spaces – each with their own meter. The utility company will bill you separately for each meter, regardless of the fact that you are the owner of both accounts.
In this scenario, McKenzie & Associates would do a study to see if, by reconfiguring the electrical panels and combining meters, the combined usage might place that new, consolidated meter in a different customer category with the utility; one that would qualify for better “volume” pricing.
If so, Voila! Your company saves money from that point onward, and the best part is that you do not have to change anything about the way you use your electricity. (Of course, we would also do an ROI factoring in the labor and new equipment costs.)
