How to Save Money: Decoding Your Business Utility Bills

Running a business involves juggling various expenses, and utility costs often fly under the radar. Understanding the hidden charges in your business utility bills will empower you to save money.

The Significance of Energy Costs in Business

For those managing business finances, energy expenses are a substantial component of the profit and loss statement. While attention is commonly directed towards labor costs, insurance, and goods sold, electricity and natural gas bills frequently go unnoticed, simply paid without scrutiny. Let's shed some light on the concealed charges within utility invoices, offering insights on how to detect them and what actions to take when identified.

Unveiling the Mystery Behind Hidden Charges

Hidden charges can manifest in various ways on your business utility bills. In deregulated states, customers deal with two distinct sections in their utility bills, and hidden charges may arise in both areas. Let's dissect each part:

Supplier Charges

The energy supply segment of your bill may harbor hidden charges stemming from issues with your energy supplier. Discrepancies in energy rates, additional costs passed on by the supplier, billing errors, or the transition from a fixed-rate contract to an index or variable rate can lead to unforeseen charges.

Utility Charges

Utility costs cover the delivery aspect of your electricity bill. Errors in this section can be pinpointed through a utility bill audit, exposing discrepancies in rate schedules, sales tax, meter readings, or billing calculations.

Unearthing Hidden Charges: A Strategic Approach

If your business grapples with significant utility expenses, dedicating time each month to review these costs can prove highly beneficial. Consider the following areas during your monthly utility bill review to uncover hidden charges:

1. Total Supply Rate

Perform a monthly calculation to ascertain your total electricity and/or natural gas supply rate. Compare this rate with the terms outlined in your energy contract. Any disparities could signify issues with your supplier, necessitating further investigation.

2. Energy Consumption

Regularly check your total energy consumption and compare it to the same period in the previous year. Consistent operations should result in similar consumption patterns. If you notice a significant increase, it might indicate meter reading errors. Contact your utility company for a meter check.

3. Sales Tax

Some states offer exemptions or partial exemptions from sales tax on energy bills. Investigate whether your business qualifies for such exemptions and take advantage of potential cost savings by applying for the exemption.

Suspect Overcharging? Take Action!

While uncovering hidden charges in business utility bills may seem complex, it's a manageable task with the right approach. Consider enlisting the services of a utility auditing company like Dreams Energy Resources to conduct a thorough review. This short time investment can yield substantial energy cost savings. If you suspect past overcharging on your utility bills, don't hesitate to reach out to our team. We specialize in utility audits and can provide a comprehensive report on billing statements and potential hidden charges.