Why Audit Your Utility Bills.
Utility bill audits uncover errors that go unnoticed year after year. Industry data shows that nearly 60% of utility invoices contain errors, with small mistakes compounding across multiple accounts and locations. Because utilities rarely issue refunds proactively, many businesses overpay for years without realizing it. With regulatory lookback periods allowing recovery of three to four years of overcharges, utility bill audits remain one of the lowest-risk, highest-return cost recovery strategies available to commercial organizations.
Comprehensive Utility Bill Audit Services.
Billing Errors That Cost Your Business Money.
Utility billing errors are often technical, hidden, and easy to overlook. Common issues include incorrect meter multipliers, improper rate class assignments, and sales tax charged on exempt processes. Many businesses also overpay due to estimated meter reads, demand clauses, or even duplicate charges across billing periods. Without a detailed audit, these errors can persist for years, quietly eroding operating margins.
Historical Utility Bill Audit
Obtain refunds and bill reductions.
Utility invoices are complex and prone to errors. In fact, we have found that close to 80% of utility bills contain some sort of discrepancy. Our audit is contingency-based meaning you do not pay unless we find you money!
Sales Tax Reductions
Obtain refunds and bill reductions.
In many states, sales tax is exempt from certain utility bills or from utilities used in specific processes. Our team of sales tax experts will find the areas where you might be overpaying, and obtain refunds on your behalf.
Types of Utility Audits
We audit all utility invoices and billings.
In addition to electricity and natural gas, we also have the ability to audit other utility invoices. We specialize in auditing waste bills, water bills, sewer bills, telecommunications bills, wireless bills, and more!
What Is A Utility Bill Audit?
A utility bill audit is a process where a utility auditing company or utility auditor analyzes a company’s utility bills to check for errors, billing discrepancies, and other mistakes. Since utility bill calculations can be very complex, the billing statements are prone to errors and billing overages. There are a few main areas that a utility auditing firm will look at when performing a utility bill audit:
Basic Tariff Calculations
First, it’s best to simply look at the utility tariff to identify if the company is being billed properly. Tariffs are sometimes thought of as taxes in colloquial language, but utility companies also call their billing schedules tariffs. In deregulated energy states, the utility delivery charges, and supply charges in regulated states, are governed by the local utility tariff. When the utility company is not calculating these tariffs properly, it could mean a billing error and a refund is due to the customer.
Meter Read Errors
With the advent and implementation of smart meters in electricity and natural gas billing, many businesses are subject to a meter read error. These errors can occur on manually read meters as well as electronic meters and can be a computer or human error. If the manual read is not recorded properly, then the business could be charged for more energy than they consumed. Many electronic meters, on the other hand, use multiplier calculations to determine the total energy consumption in a building. When these equations are off, they can deliver higher meter readings.
Sales and Use Tax
Another aspect of a utility audit has to do with sales and use tax. In some states and jurisdictions, certain types of businesses or business processes are exempt from all or some of the sales tax paid on a utility bill. Understanding these specific rules can be very cumbersome, especially when there are multiple locations across different states. A good utility auditor will be able to calculate your sales tax exemption status by location and even claim refunds for sales taxes that might have been paid erroneously.
Understanding the Difference: Bill Audits vs. Energy Audits.
If you suspect billing errors or haven’t reviewed utility invoices in several years, a utility bill audit is the right first step. If your goal is to lower energy usage through operational or equipment upgrades, a commercial energy audit is more appropriate. Large or complex facilities often benefit from both, combining cost recovery with long-term efficiency improvements. Here is a comparison chart detailing bill audits vs. energy audits:
| Audit Type | Utility Bill Audit | Commercial Energy Audit |
|---|---|---|
| Primary Focus: | Reviewing utility invoices and billing data | Evaluating how energy is used within a facility |
| What It Identifies: | Billing errors, overcharges, rate misclassification, tax errors | Energy waste, inefficient equipment, operational improvements |
| Typical Outcomes: | Refunds or credits for historical overcharges | Actionable recommendations to reduce future energy use |
| Site Visit Required: | No | Yes |
| Audit Standards: | Utility tariffs and regulatory rules | ASHRAE Level I, II, or III assessments |
| Best For: | Businesses that haven’t audited bills in years or suspect billing errors | Organizations focused on reducing consumption and improving efficiency |
The Benefits Of A Bill Audit.
Having a utility bill audit done at your business or organization can be very beneficial. Not only will a utility auditor be able to discover if you have been overpaying on your utility bills, but they can also make recommendations for future cost savings based on your utility accounts and profile. Here are some of the top benefits of a utility audit.
Refunds For Overages
One of the best aspects of a utility audit is that if the auditor is successful in finding errors on your bills, then you might be entitled to a refund. When a utility billing error occurs each month and was an error made by the utility company, then you might be entitled to a refund. And, some utility bill refunds can be substantial based on the size of your bills.
Achieve Accuracy
Another key outcome of a utility audit study is that you come out on the other side knowing that your utility bills are now accurate. Nothing is worse than thinking that you might be overpaying on certain bills. A utility audit is a great way to clear the slate and get your bills in order once and for all.
More Than Just Energy
Most utility audit companies, including Diversegy, will audit all aspects of your utility costs and not just your electricity and natural gas bills. Our utility bill audits include waste bills, telecom bills, internet bills, wireless bills, and even water and sewer bills. This gives you a chance to save money across all of your utility providers and reduce costs significantly.
Is a Utility Bill Audit Right for Your Business?
A utility bill audit is especially valuable for organizations with complex or a high-volume of utility bills, where small errors can quickly add up. Businesses with multiple locations, multiple utility types, or monthly utility spend exceeding $5,000 are more likely to uncover meaningful savings or refunds.
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