Top Energy Billing Errors You Should Know

lady and man looking over their energy bills
*Collaborative Post

Utility billing errors can cripple your business. At worst, your utilities can be turned off. It’s advisable to be careful with utility bills to avoid paying for costly errors. Look out for these energy billing errors in your utility bills.

Utility Meters

Keeping track of meters located in different locations isn’t easy. In many cases, companies end up paying for meters not tied to them. This makes it difficult for multisite organizations to pay for what they use.

The best way to deal with utility meters is to have a good energy audit department. Also, invest in multisite meters to consolidate all your readings and bills. Conduct emergency audits from time to time. If the problem persists, consider changing your energy supplier. Compare rates at Utility Bidder for the best deals.

Human Error

People can make mistakes. For instance, metering personnel can misplace a decimal point, resulting in a huge error in your bill. Also, meter multipliers, over time, can cost your company hundreds to thousands of dollars.

In most cases, if you misplace your meter, it will be replaced by a new meter. If the new meter has a different multiplier, an error will occur. Thus, ask your energy management department to be careful with these errors. They should be meticulous when auditing bills.

Street Lights

Generally, street lights are provided by municipalities. Public lighting (which lights the streets) is paid for by municipalities. However, if it faces away from the street towards your business, you will pay for that light. These street lights range from outdoor lighting to parking lots.

Street lights can attract billing errors. For instance, if one street faces the street and the other one faces your business, you may be billed for both. This is an error. Be careful when going through your bills to identify these errors.

Contract Errors

Contract errors occur when you purchase your utilities from a deregulated third-party energy supplier. In most cases, the rates from third-party suppliers aren’t regulated. The third-party supplier may bill incorrect prices. To ensure that you are paying the correct amount, bring in an independent audit.

Remember, state-regulated utility providers, are bound by tariff rates, usually approved by relevant regulatory bodies. The tariff defines the contract between the customer and the utility provider. It’s important to conduct an independent audit to ascertain whether you are billed under the right tariff.

Sales Tax Errors

The law grants businesses and other nonprofit organizations sales tax-based exemptions. Unfortunately, many of these organizations aren’t aware of these incentives. Besides nonprofits, companies that manufacture products and even grocery stores are eligible for these sales tax exemptions.

Your energy management department should comb through the state tax regulations to ascertain if you qualify for these exemptions. Tax experts can do this job pretty well and save you good money.

The Bottom-Line

Don’t allow the above billing errors to kill the prospects of your business. Learn these errors. If you notice them in your bills, report them to your utility provider.

*This is a collaborative post. For further information please refer to my disclosure page.

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