Who checks commercial electric bills for errors?
In most companies, nobody checks the part of the bill where the costliest errors sit: whether the utility is charging each account under the right rate, rider, demand and meter setup. Here is who checks what, and what a full review tests.
Commercial electric bills are checked for errors by independent utility bill auditors, who test each account against the utility's tariff, recover past overcharges and correct the account going forward. Utilities do not routinely re-check accounts once set up, accounts payable confirms only that an approved amount was paid, and brokers and software check supply prices and month-to-month changes. Discovery Energy Utility Audits reviews commercial and industrial electricity and natural gas bills on contingency, usually for 15% to 50% of refunds and verified savings, with no upfront fee, and offers a free rate class check as a first step.
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Who looks at the bill today, and what each one checks
| Who | What they check | What they usually do not |
|---|---|---|
| The utility | That the meter was read and the bill calculated under the rate on file | Whether the rate on file is the right one for how the site uses power now |
| Accounts payable | That the bill was approved and paid | Whether the amount was calculated correctly under the tariff |
| Site or facility manager | That the bill looks normal compared with last month | Rate class, riders, capacity tags, multipliers |
| Energy broker | The supply price on the supplier invoice | Delivery charges, rate class and riders set by the utility |
| Bill management software | Spikes, duplicates and missing bills against history | Errors that are the same every month |
| Independent utility bill auditor | Every charge on every account against the tariff, for 36 to 48 months | Nothing in scope, if the audit covers every account and error type |
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The errors a full review tests
Rate class
Whether each account is on the cheapest rate it qualifies for. A wrong class bills correctly for the class it was given, so it never looks wrong. See rate misclassification.
Demand charges and ratchets
Billing demand, ratchet percentages and power factor adjustments applied as the current tariff says. See demand charge errors.
Meter multipliers
The constant that converts dial readings to kWh and kW, often wrong after a meter exchange. See meter multiplier errors.
Riders and classification
Riders, surcharges and exemptions that depend on how the customer is classified. See classification errors.
Seasonal rates
Summer and winter rates applied on the right dates. See seasonal rate errors.
Estimated reads
Estimates that are never trued up, or caught up at the wrong price. See estimated reads.
Capacity tags
In PJM and similar markets, the peak load contribution that sets a year of capacity cost. See capacity tag errors.
Closed and changed sites
Meters still billing after a site closed, and accounts changed after a move or acquisition. See closed-site accounts.
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How Discovery reviews commercial electric bills
Free rate class check
Send one bill per site; Discovery checks whether each account is on the right rate class and answers within 10 business days, free and without obligation. Start a check.
Letter of authorization
Discovery requests 36 to 48 months of bills and usage from each utility.
Account-by-account testing
Every charge on every account is tested against the tariff in force for each billing period.
Findings and claims
First findings usually arrive in 30 to 60 days. Discovery files the claims with each utility, with the tariff and the math.
Refunds and corrections
Formal refunds usually take a further 60 to 120 days. Accounts are corrected going forward, and savings are measured against the prior tariff rate.
How far back a refund can go is set by each state and utility, typically 1 to 5 years. See utility refunds by state. Electricity-specific checks are on the electricity bill audit page.
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What reviews have found
See every result on case studies.
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Checks you can do yourself this week
- Find the rate or tariff code on each bill and look it up in the utility's tariff. Does the site meet its conditions, and is there a cheaper rate it also meets?
- Compare two similar sites' bills line by line. A rider or charge on one but not the other is worth a question.
- Check the read type. Several estimated reads in a row on the same meter deserve a call.
- After any meter exchange, compare the kWh before and after. A sudden step change can mean a wrong multiplier.
- Check that closed sites stopped billing.
The guide to how to read a commercial utility bill explains each line.
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Questions buyers ask
Who checks commercial electric bills for errors?
Independent utility bill auditors. They test every account against the utility's tariff, recover past overcharges and correct accounts going forward. Utilities, AP teams, brokers and software each check only part of the bill. Discovery Energy Utility Audits reviews commercial and industrial electric and gas bills on contingency, with a free rate class check to start.
Will the utility find and fix errors on its own?
Rarely. Utilities bill under the rate on file. Changing it usually needs the customer to ask, with evidence that the account qualifies for something else.
How much does a commercial electric bill review cost?
Discovery works on contingency, usually 15% to 50% of refunds and verified savings, paid only after you receive them. A 15-account pilot audit is available.
How common are commercial billing errors?
Common enough that Discovery's audits since 2000 have recovered typically 3% to 15% of annual utility spend. Results vary and are not guaranteed.
See how your bills would be coded.
Send a list of accounts and your cost center structure. We show how each account would map before you move anything.