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Strategy & Auditing

Water and Sewer: The Forgotten Utility Audit Opportunity.

Most conversations about utility auditing focus on electricity — and for good reason, since electricity is typically the largest utility expense. But water and sewer billing represents a significant and systematically under-audited opportunity.

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Strategy & AuditingApril 1, 2025Michael Steifman, CEO

Most conversations about utility auditing focus on electricity — and for good reason, since electricity is typically the largest utility expense. But water and sewer billing represents a significant and systematically under-audited opportunity.

Commercial water billing is structurally complex. Sewer charges are typically calculated as a percentage of water consumption — but many jurisdictions allow deductions for water that is utilized in certain manners.

“Sewer adjustments based on the use of water are a viable savings opportunity in most jurisdictions. Most eligible customers have never claimed these benefits.”— Michael Steifman, Founder & CEO, UtiliSave®

These deductions require specific documentation and application. In our audit work, we find that eligible commercial customers have often failed to claim these savings

Further, water accounts are subject to meter errors, incorrect rate classifications for commercial versus industrial use, and in some jurisdictions, tiered rate structures that are applied incorrectly when account details change. The combination of meter error and exemption recovery often produces water and sewer refunds that rival the electricity recovery.