McKenzie Associates

Why a Utility Bill Audit?

Many companies go to great lengths to implement measures to reduce utility consumption, but don’t realize that those measures could be undercut if they are still overpaying for that consumption.

Nobody Is Looking

Utility companies - like other investor owned companies - are under increasing pressure to do more with less.  The hand-holding of customers that used to exist is no longer available for small, medium sized, and even large customers. 

Ongoing efforts to implement deregulation are creating a regulatory climate that is increasingly complicated and dynamic.

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.

Why Overcharges Occur
man looking away from receipts

While utility companies are not out to intentionally overcharge customers, they also do not devote as many resources to making sure their billing is accurate as they could.  Many customers find that - either through errors or not being savvy customers - they are paying their utility companies more than those companies are entitled to.

Money and pricing

The Solution

Computers do not make errors, but people inputting data do.  A simple demand read error by a meter reader can impact a customer’s bill for twelve consecutive months.  Increasing utility company reliance on new technology allows for more efficient delivery of bills, but with less oversight and frequently less accuracy. 

A customer’s utility invoices are typically paid by AP personnel who have no training to spot overcharges – especially if these overcharges have been ongoing and do not raise a red flag in any given month.  

In addition, many “overpayments” are not the result of errors, but instead are the result of the client not taking full advantage of the tariff structure and the opportunities therein. 

If performed on a contingency basis by a company where the customer incurs no upfront cost or risk, even if no recoveries are obtained, the client at least can move forward secure in the knowledge that they are not overpaying for their utility services.
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Why give your away company's money?

Internal staff have neither the time or expertise to study hundreds of pages of utility tariffs which constantly change. Once an error is overlooked, it becomes the new norm and gets paid forever.
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