How A Utility Bill Audit Can Save Your Company Thousands
It's the first step of our process- but why?
One of the first things we ask of a new client is for copies of their recent utility invoices so that we can conduct what we call a utility bill audit. We want you to trust us to review your utility costs by allowing us to have complete copies of your electric and natural gas invoices. What kinds of things might we find?
Here is an example from the restaurant industry:
In the fall of 2022, Electric Advisors was entrusted to advise an ownership group that had multiple locations throughout the DMV. After a comprehensive review of their natural gas and electricity charges, we found three areas of significant cost reduction for our client.
Because of the type of business they are, our client is exempt from paying sales tax on their gas and electric utilities in Washington, D.C. (yes, D.C. has a sales tax exemption for the restaurant community!). This was averaging $300.00 a month savings per location in the District of Columbia.
During our review process of their electricity costs, because most of their electric load is in the District of Columbia specifically, we advised the client not to lock into a contract for electricity supply until spring of 2023, as we expect the market to be more favorable.
Sadly, in our review, we also uncovered that one of the locations had been placed under contract unbeknownst to our client. It turns out that our client was “slammed” or defrauded into a contract. Unfortunately, our industry has a few bad players. Once it was uncovered, and details had been ascertained regarding this fraudulent contract, we advised our client specifically how to protest and call into account the supplier who was unaware of the fraudulently obtained contract. Our advice led to a refund from the supplier of over $80,000.00. That helped their monthly P&L!
Next, we focused on the clients’ natural gas expenditures and started to “shop” our client's gas choices through our bevy of suppliers. Based on our client’s unique profile, we were able to lock in a 36-month fixed rate natural gas supply price 31% lower than the utility offered at the time. 31% lower!
All told, as of publication, we have helped our client lower their operating expenses by $90,000 a year, plus a one-time refund of $80,000.00.
This is what we did for this client, what can we do for you?
