When businesses are looking to streamline their expenses and boost profitability, they often overlook a hidden source of potential savings: their energy bills. Conducting an audit of your energy bills can reveal valuable insights and uncover lots of ways your business can save money.
Here are the top three reasons why undertaking an energy bill audit should be a priority for your business.
1. Identify Billing Errors and Overcharges
Energy bills and contracts can be pretty complex, making it easy for errors and overcharges to go unnoticed. A thorough audit allows you to look at each line item and compare charges against contracted rates and usage data. Common billing discrepancies include incorrect meter readings, billing at incorrect tariff rates, and erroneous surcharges or fees. Identifying and correcting these errors in your contracts can lead to an immediate savings for your business.
2. Are you on the correct kVA Capacity rate?
Businesses with a half hourly meter are given a kVA (kilo-volt-amperes) capacity rate which is determined by the Distribution Network Operator. It is a fixed cost on your energy bill, however, an incorrect rating could mean higher surcharges on anything over and above your contracted rate.
And unfortunately you'd never now if your kVA is too high as without an audit you can't see what your current usage rate is.
It's a little like your data on a mobile phone contract. Your contracted data usage could be 100GB each month, however, you may only ever be using 5GB each month - but your supplier won't generally inform you that you're way under your allowance.
It can't be underestimated how important it is to know that you're on the correct rate to reduce any additional cost to your business.
3. Maximise your Contractual Value
Now let's talk contracts. Are you getting the 'most bang for your buck' from your energy supplier?
Auditing your bills provides invaluable insights into the efficacy of your current contract. With this knowledge you can confidently explore opportunities for securing better rates or exploring alternative providers.
And did you know that you can set up your new contracts way ahead of your renewal? By utilising advance procurement you can get your next contract in place to start on the exact date when your existing one runs out.
___
In summary, undertaking an audit of your energy bills is a proactive and strategic approach to managing your businesses energy costs. By identifying billing errors and overcharges, uncovering energy waste and inefficiencies, you can be on the path to saving your business money.
At Honest Utility Group, our team will make sure that you're not overpaying on existing contracts. You can reach our team by phone on 0191 7208 238 or by email at info@honestltd.co.uk
