Avoiding Overpayment in Utilities

Utility costs are a significant part of property expenses, yet many landlords, project managers, and facilities managers pay more than necessary due to errors, misallocation, or unclear billing. EG-Audit provides independent verification to identify and prevent overpayments in electricity, gas, water, and other utilities.

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Understanding Utility Charges

Utility charges typically consist of multiple components, each of which can be a source of error:

Unit Charges: The cost per kWh, therm, or cubic meter.
Standing Charges: Fixed fees applied daily or monthly for supply.
Environmental Levies: Government-imposed fees for renewable energy or carbon obligations.
Service Fees: Supplier administration or late payment fees.
Allocation Costs: Shared utilities billed across multiple tenants or properties.

Misapplied charges, incorrect allocations, or billing errors can lead to overpayment without being immediately apparent.

Step 1: Gather Utility Documentation

Accurate auditing begins with collecting all relevant documents:

Recent and historical utility invoices
Supply contracts and tariff agreements
Meter readings and consumption records
Correspondence with utility providers
Previous audit reports or benchmarking data

EG-Audit provides a structured checklist to ensure all necessary documentation is collected efficiently.

Step 2: Verify Meter Readings

Incorrect meter readings are a frequent source of overpayment:

Compare invoiced readings to actual meter readings
Identify estimated readings that may inflate costs
Check for anomalies between periods or properties
Validate allocations for multi-tenant properties
Document all discrepancies for evidence

EG-Audit cross-checks all meter readings to ensure charges accurately reflect consumption.

Step 3: Confirm Tariff Accuracy

Verify that all charges align with the contracted tariffs:

Check unit rates for electricity, gas, and water
Confirm standing charges match contract terms
Ensure peak/off-peak rates are applied correctly
Review environmental or regulatory levies for accuracy
Identify any unexplained adjustments or fees

EG-Audit ensures tariff application is accurate and identifies areas where overpayment may occur.

Step 4: Review Allocations and Shared Costs

Shared utilities can be misallocated, leading to overpayment by individual tenants or properties:

Check proportional allocation based on usage or floor area
Verify calculations for shared meters or services
Compare allocations to historical patterns
Identify incorrect apportionments that inflate charges
Document discrepancies for review

EG-Audit audits allocation methods to ensure fair distribution of costs.

Step 5: Benchmark Utility Costs

Compare your utility charges against market standards or similar properties:

Unit costs against average rates in your area
Standing charges compared to typical supplier fees
Overall consumption vs expected patterns for property type
Identification of unusually high charges or trends
Opportunities for negotiation or switching suppliers

EG-Audit provides benchmarking to highlight potential savings opportunities and inefficiencies.

Step 6: Investigate Anomalies

Investigate any anomalies found during verification and benchmarking:

Duplicate or misapplied charges
Unexpected spikes in usage or costs
Incorrect tariff application
Errors in shared cost allocations
Unsupported adjustments or fees

EG-Audit identifies root causes and quantifies potential overpayments with evidence.

Step 7: Engage Suppliers for Corrections

Once discrepancies are identified, engage suppliers professionally to resolve issues:

Present clear evidence of errors or overcharges
Request corrections, refunds, or credits
Follow contractual or dispute resolution procedures
Maintain written records of all communications
Escalate to independent audits if resolution is delayed

EG-Audit guides property professionals through this process to maximise recovery and ensure accountability.

Benefits of Preventing Utility Overpayment

Reduce operational expenses and recover lost funds
Ensure accurate billing and fair allocation
Improve budgeting, forecasting, and financial planning
Mitigate risk of supplier errors or disputes
Maintain confidence and control in property management

Proactive verification and audit of utilities protects property budgets and avoids unnecessary expenditure.

Take Action Today

Utility overpayments are common but preventable. EG-Audit provides independent, evidence-based audits to review every utility invoice, identify errors, and guide corrective action. Secure clarity, reduce costs, and protect your property budgets today.