UNDERSTANDING A UTILITY AUDIT
Utility Audits can take 30, 60, 90, and even up to 120 days to complete depending on their size and complexities.
To ensure that customers are not left in the dark, be sure they understand the required time it takes to complete an audit.
SOME OF THE COMPONENTS TYPICALLY EXAMINED
When performing an electric utility audit for a commercial customer over a period of up to 48 months, various aspects are reviewed to ensure accuracy and identify potential savings.
- Billing Accuracy and Errors:
- Rate Verification: Ensuring the rates applied match the contractual agreements.
- Usage Verification: Comparing billed usage against actual consumption records.
- Demand Charges: Checking for any errors in demand charges, which can significantly impact costs.
- Historical Data Analysis:
- Usage Patterns: Analyzing consumption patterns over the audited period to identify anomalies or trends.
- Rate Fluctuations: Reviewing historical rates to detect discrepancies or overcharges.
- Contractual Compliance:
- Contract Terms: Ensuring compliance with terms related to pricing, demand charges, and other contractual obligations.
- Tariff Analysis: Verifying that the correct tariffs are being applied as per the utility agreements.
- Error Identification and Refunds:
- Overcharges: Identifying any overcharges due to meter reading errors, incorrect rates, or other billing mistakes.
- Refund Opportunities: Seeking refunds for any identified billing errors or overcharges.
- Efficiency Recommendations:
- Energy Efficiency: Providing recommendations for improving energy efficiency and reducing future costs.
- Cost Reduction Strategies: Suggesting strategies such as demand management and energy conservation measures.
- Regulatory Compliance:
- Regulatory Review: Ensuring compliance with local, state, and federal regulations regarding utility usage and billing.
- Rate Optimization:
- Negotiation: Assisting in renegotiating rates or contracts to secure more favorable terms.
- Alternative Suppliers: Exploring the possibility of switching to alternative suppliers if it offers cost benefits.
- Additional Services:
- Utility Rebates: Identifying and applying for available utility rebates and incentives.
- Sustainability Programs: Assisting with the implementation of sustainability programs to reduce environmental impact.
Audits are designed to be comprehensive and can uncover significant savings by correcting billing errors, optimizing rates, and improving energy efficiency.
There are other proprietary measures conducted during an audit that are not listed above.
