Real Talk About Utility Audits: Why do You Need One?

If you knew you had an 80% chance of winning the lottery tomorrow, would you buy a ticket? I sure would!

Based on our experience with utility audits, we conservatively estimate that 80% of companies are overspending on their utilities. 

You need an audit because there’s a really good chance you’re sitting on savings. 

You’re likely overspending on your utilities because - through no fault of your own - you don’t know what you don’t know. You:

  • Likely Need a Different Utility Rate Structure

  • Have Invoices with Errors

  • Could be Missing Out On Tax Exemptions  

  • Likely are Paying for services or Meters that are not needed or not used

So we’ve compiled our best market knowledge in this post to help you. The more you know, the more you’ll see savings opportunities. 

You Likely Need a Different Utility Rate Structure

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Utilities bills are different that other bills - like cable, for instance. You can usually pick your internet and cable provider, but you won’t typically get a choice with your electric company. 

For most areas of the country, utilities companies are, in effect, state-controlled monopolies. What they charge is carefully regulated and monitored.  In other areas of the country, utilities are deregulated and you can pick your vendor. In either case, a utility audit can turn up substantial cost reduction opportunities.  

But while the government mandated prices are fixed, the rates you pay are not. You may be paying at a tier you don’t necessarily need to be paying. 

There are three parts to utility rate structures: customer charges, demand charges, and supply charges. 

We find the best rate structure that’s right for you. We keep in mind typical market rates so when we see charges that are significantly above the normative average, we know that’s a sign of potential savings. 

(Curious if our extensive audit program could be a fit for you? Schedule a quick, informal call today!)

Your Invoices Have Errors

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Few companies have the resources to review and monitor their invoices. It’s one of those things that can easily get lost in the sight of more urgent tasks. 

Reviewing your utility bill history makes price hikes and errors apparent. Say you’ve been charged $500 a month for the past six months, but this month you get a bill for $700. You’ll know you need to investigate! Maybe the larger bill is the result of a usage spike - or maybe not.

Know your bill history, and these anomalies will stand out to you. 

 You’re Missing Out On Tax Exemptions

When it comes to tax exemptions, it’s often ideal to have expert help. Different business can qualify for different statuses - depending on which state you’re in and which government regulations apply. 

Tax codes can be complicated and overwhelming, but the business that know how to take advantage of the savings opportunities in them can come out ahead - way ahead, in some cases!

 Business utilities can be tax deductible. Some companies can include them on the “other deductions” line item on their tax return. But you’ll want to make sure that filing as such complies with state regulations. 

You’re Paying for Unnecessary Services or Meters

Over time, companies change. They get larger, and responsibilities change hands. In the process, some details can get overlooked. An audit can find services and meters that are no longer in use, but are still being charged.

Sometimes it takes another set of eyes to find these overlooked details!

Utility Audits Yield Savings

Utility and Telecom Audits find savings.

Reviewing your rate structure, your invoices, and your exemption options can yield savings.

Utility bills are non-negotiable - everyone has to pay them! But they’re also recurring, so the savings you enact today will affect your companies bottom line for years to come. 

Curious if our extensive audit program could be a fit for you? Schedule a quick, informal call today!