Common Utility Bill Errors

Utility bills are a regular part of life for any business. Nonetheless, they are prone to errors, which can lead to confusion, frustration and loss of your hard-earned money. We understand that studying your utility bills is boring — and it can be quite tiresome to identify billing errors and discrepancies without professional help, which is where we come in. Before we explain how we help, let’s familiarize ourselves with the most common utility bill mistakes you will likely encounter.

13 Most Common Utility Bill Errors

Many businesses are unaware that even minor errors on an energy bill can cost large energy consumers a hefty amount of money in the long run. However, you can educate yourself on common sources of energy errors, and you can seek guidance from auditing and utility experts to help you obtain the reimbursements you are justly due. Common utility bill errors happen more often than businesses realize. These include:

1. Billing period errors: One source of errors can occur in the billing period. Sometimes, errors arise when one billing period overlaps another. For example, a consumer may be charged for 31 days of usage in a month, but that billing period only had 29 days of usage.
2. Invoicing errors: Another standard error is balance forwarding, which is when a previous balance on an account is carried over to another billing period or is brought over accidentally from a different account. Additional billing errors include invoices that are sent to the wrong account, invoices sent when the account has been closed, the application of duplicate line items and energy credits, which would have reduced a bill, not being applied.
3. Supplier contract error: Supplier contract errors also occur regularly. This is when a customer changes utility companies and is charged for energy from both their new and old companies.
4. Incorrect meter readings: Sometimes, it can be challenging to keep track of every meter in a large facility powered by multiple units, leading to errors in the readings. Utility companies may not always be alerted for these types of issues, especially if they are receiving monthly payments from the customer.
5. Deviations in energy usage: Utility companies don’t react when they see large deviations in energy usage. A responsible energy carrier will let their client know when they see spikes in usage in order to help their customer identify problems and reduce energy use.
6. Improper classification: Utility bills fall into three major classifications — residential, commercial and industrial. Your classification affects the rate applied to your utility bill. Therefore, it is important to check that you are properly classified to maximize discounts and minimize your bill. There are other minor classification types, such as special zone pricing discounts, which make it more challenging to decipher your category. Hiring a professional to do a proper audit is recommended in such cases.
7. Late fees: Without a thorough study of your monthly bills, you may fall prey to erroneous late fee charges. Such billing errors can go unnoticed for a long time and cost your business. Late fees often go unnoticed by businesses that have set up an automatic system for their utility bill payments incorrectly. Consider reviewing your system to ensure timely payment in such instances.
8. Double billing: Double billing happens when you are charged twice for the same service or period. This can happen due to system errors or processing mistakes. A careful review of your itemized bill statement can resolve this error. Inform your service provider immediately if you spot such discrepancies.
9. Application of wrong rates: Your utility rates and the supplier contract you signed determine how much you pay for different line-item charges on your bill. It takes work to establish that each line-item was properly charged. Professional service can help you notice when the wrong rates are being applied to your company or if you are paying for a service not stipulated in your contract.
10. Invoice sent for closed account: If you’ve recently closed or downgraded your account, you may still receive bills for services you did not use. This usually occurs when the utility provider fails to process your cancellation correctly or in good time. Regular checks help ensure you are not paying for inactive accounts.
11. Incorrect tax calculations: Taxes and surcharges are typically included on utility bills. Sometimes, your service provider can make an error when calculating these charges. Reviewing your bill to see that taxes are applied correctly is prudent. Contact your utility provider if you believe an error has been made.
12.  Meter access issues: In rare instances, your meter may be inaccessible due to overgrown vegetation, locked gates or other obstacles. These may prevent accurate meter readings or result in estimated bills. Check that your meter is easy to access for utility workers to avoid potential delays in service or billing errors.
13. Failure to apply discounts or rebates: You are responsible for knowing which rebates or discounts your business is entitled to and ensuring they are applied correctly to your bill. Failure to do so may result in overpayment and unnecessary expenses. Keep track of any discounts or rebates you qualify for and verify they are being reflected on your bill.

How to Find Errors in Utility Bills

The first step to finding errors in your utility bills is familiarizing yourself with regular utility mistakes such as the ones outlined above. Next, you must take proactive steps to review and verify your bills. Doing so lets you identify and correct billing errors before they become expensive. Maintain open and active communication with your service provider and quickly address any concerns or discrepancies to ensure utility bill accuracy and optimal service delivery.

Many consumers might not have the knowledge needed to find these errors and bring them to the attention of the utility company to get the reimbursement they deserve. This is where using a forensic auditing and utility expert can make a big difference in energy savings.

UtiliSave, which serves over 16,000 properties nationwide, has found that because of the above errors, there is a 93% likelihood that a customer will find a mistake on their bills. Moreover, UtiliSave has found that the energy overcharges for large institutions can often average from around 2.5% to 10%.

Enjoy Stress-Free Bill Auditing With UtiliSave

Regularly checking your utility bill for discrepancies can be very rewarding, but this is not easy to do. Forensic utility bill auditing firms have the necessary tools and experience to detect issues that would generally go unnoticed by an untrained eye. It is possible to backtrack and analyze billing inconsistencies that go as far back as 6 years. Using customized algorithms, auditing firms can pinpoint easy-to-miss utility bill errors and even flag potential future errors.

UtiliSave is a specialized bill auditing company based in New York. We help companies improve their bottom lines by recouping money from their utility bills. We also help companies boost their ESG ratings by reducing their reported carbon footprints.

For more information on maintaining utility bill accuracy through an audit or how UtiliSave can help, contact us today. In the unlikely event that we do not find any utility bill savings for your firm, you can still rest easy knowing that your bills are accurate at no cost on your part!