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Utility Bill Audit – Energy Cost Reduction

Saving money on energy bills is winning aspect to business holders and Industries. In general, Utility Bill Audit is the key of economy ideas into realities, by providing possible solutions within a specified time frame.

Need for an Audit

In any industry, energy management function sets up a vital area for cost reduction.  Audit will help to understand more about the ways energy are used in any industry, and help in identifying the scope for improvement exists. A brief review of facility utility bills and other operating data will identify noticeable areas of energy inefficiency.

utility bill audit

Objectives of Utility bill audit

  • Study of variation and improvement in power factor and load factors since the real power which is consumed by loads is mainly depend on power factor
  • Identify the various types and costs of energy use
  • Reduction in utility bills
  • Analyze Data entry errors or billing errors

By doing so?

You’ll be able to identify the impact upon profits caused by the adjustments to bills and the disallowances related to the parameters checked by the audit. For example a customer was penalized for using inefficient machinery that requires a surge of power at start-up. Because this customer had maximum demands of 260 KVA for setting off the equipment, there was a demand charge based on 90% of KVA rather than the total KW actually consumed. Because of vague utility procedures, he was billed for more than he used

Not only that errors may occur anywhere like Meters providing inaccurate readings, assigning incorrect rate schedules etc which can result in a huge faulty utility bill, so it’s important that you should have tools/processes in place to identify the issues and correct them in a timely manner. Hence Utility bill audit test can help you spot problems and would give a positive angle to energy cost reduction.

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