Are your energy bills correct?
You might be surprised to learn just how common it is for energy bills to be wrong. In 2018, Power Direct Ltd’s bill validation service checked 10,817 invoices to identify any discrepancies, and we found that 8% of the gas bills, and 20% of the electricity bills were wrong!
So, how do you know if your bill is right? We use a five-point checklist for our bill validation service, which considers the following:
Calculations: Does the information on the bill add up? Is the arithmetic that is used to calculate the consumption and the costs correct? We have seen bills that seem to have the right information, but when we check the calculations, somehow the outcome is wrong.
Continuity: Does the new bill follow on seamlessly from the last one? There should be no gaps in the billing sequence and consumption should continue without interruption. Does the opening read match the closing read on the previous bill? Has payment information been correctly allocated?
Consumption: Consumption calculation and information is often complex for commercial consumers. Knowing the type of meter you have and the level of granularity in your consumption information is important to understand. Essentially, all of the questions here can be solved by knowing that the billed consumption matches the metered consumption. If estimates have been used this will almost never be the case, but they might be close enough. On the other hand, they may be wildly out – and you only ever want to pay for what you use.
Contract: Has the contract information been properly applied to the bill? The more complex the terms of your contract the more difficult this is to check. If you buy energy flexibly and/or have any level of pass through charges they will be difficult to check but, in these circumstances, it is even more important to try!
Costs: This is simply putting the whole lot together to ensure that the supplier has come up with the right amount. Have they administered the payments process correctly, for instance, Direct Debit discounts or payment plans?
How can a bill validation service add value?
There are so many more ways in which an energy bill can be wrong that it is worth reviewing them on a routine basis. Our invoice validation package is a checking and confirmation service focused on identifying any possible discrepancies in energy bills. We thoroughly review each bill and spend the time required to right any mistakes, chase any money owed and then have it returned to our clients.
Contact our energy experts if you would like an informal discussion about how we can help you on your journey towards smarter business energy: 0333 1234 313.