- Sophia Lee
- September 6, 2024
Is your energy bill accurate?
If you’re not regularly reconciling your energy invoices, the answer might surprise you. It’s astonishing how often energy companies make simple billing errors, and over time, these mistakes can add up to tens or even hundreds of thousands of pounds.
In today’s cost-conscious business environment, every penny counts, and it’s high time we shone a light on an often-overlooked aspect of energy management for businesses: bill reconciliation.
Reducing energy costs – don't pay more than you have to
Energy bill reconciliation is the process of comparing your actual energy usage with what you’re being charged for. It’s about making sure that your energy bills reflect your true consumption, contract rates, and any negotiated terms.
Errors can occur at multiple stages—from incorrect meter readings to misapplied rates—and unless you’re vigilant, these can go unnoticed, eating away at your bottom line.
Why Energy Billing Errors Happen
Energy billing errors can stem from several sources. For example, meter reading discrepancies are a common culprit. If your energy provider bases your bill on estimated rather than actual readings, you could end up paying more than necessary.
Contractual errors are another issue—sometimes, the rates or terms agreed upon aren’t correctly applied, leading to inflated charges.
Additionally, changes in energy usage patterns, incorrect tariff applications, or unaccounted-for charges like standing charges or VAT can also skew your bills.
Example of Datore’s bill reconciliation dashboard
The Step-by-Step Guide to Energy Bill Reconciliation
Ready to dive in? Here’s your roadmap to reduce your energy costs:
Step 1: Gather Your Data
Round up all your energy bills and meter readings. We’re talking a good 12-24 months‘ worth. It’s time to play detective!
Step 2: Check the Basics
Verify that your tariff rates, standing charges, and contract details are correct. You’d be amazed how often these sneaky little details can be off.
Step 3: Compare Meter Readings
Cross-reference your actual meter readings with those on the bills. Any discrepancies? That’s your first red flag!
Step 4: Analyse Consumption Patterns
Look for any unusual spikes or dips in energy usage. If your consumption suddenly skyrockets without explanation, it’s time to dig deeper.
Step 5: Verify Time-of-Use Charges
If you’re on a time-of-use tariff, ensure you’re being charged the correct rates for peak and off-peak times.
Step 6: Check for Estimated Readings
Estimated readings can be wildly inaccurate. Flag any bills based on estimates and provide actual readings to your supplier.
Step 7: Review Additional Charges
Scrutinise any additional fees or charges. Are they all legitimate and in line with your contract?
Step 8: Compare with Historical Data
How does your current consumption stack up against previous years? Any unexplained changes could indicate billing errors or equipment issues.
Step 9: Document Everything
Keep meticulous records of your findings. If you need to dispute a bill, you’ll want a comprehensive and well-organised paper trail to support your case.
The Power of Analytics in Bill Reconciliation
Now, all of the above steps are close to impossible with a manual approach. Let’s talk about the secret weapon in your energy-saving arsenal: analytics for energy. This isn’t just about number crunching; it’s about turning raw data into actionable insights.
Advanced analytics tools (in conjunction with a tried and tested approach) can:
- Automatically flag billing discrepancies
- Predict future energy consumption based on historical patterns
- Identify opportunities for load shifting to take advantage of lower rates
- Benchmark your energy performance against industry standards
By harnessing the power of data analytics, you’re not just reconciling bills – you’re unlocking a whole new level of energy efficiency. It’s like having a crystal ball for your energy costs!
Analytics as a Service for Energy Management
Effective energy management requires sophisticated analytical capabilities. However, not every business has the resources to build an in-house data department, and even if one does, those data experts very rarely focus their resources on energy management.
This is where Analytics as a Service (AaaS) comes into play.
Datore’s AaaS provides the people, technology and methodology to help you collect raw data from your systems and turn it into the actionable insights you need to reduce your energy bills and carbon footprint.
We saved one organisation £500,000 by reconciling their energy agreements vs meter readings. Contact us if you’re interested in this kind of savings too 😉
Energy Savings You Can't Afford to Miss - Conclusion
Bill reconciliation might not sound like the most thrilling task on your to-do list, but trust us, it’s worth its weight in gold. By following this guide and leveraging the power of analytics, you’re not just saving energy – you’re boosting your bottom line.
Remember, in the world of energy management for business, knowledge is power – quite literally!
So, don’t let those pounds slip through your fingers. It’s time to shine a light on your energy management – dive into those bills and start saving!
Don't pay more than what is necessary for your energy!
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