Best Practices for Energy Procurement Audits
Energy procurement is a complex area where landlords, project managers, and facilities managers often overpay due to unclear tariffs, errors, or misallocation. Following best practices in auditing procurement ensures transparency, compliance, and potential savings. EG-Audit provides independent audits with proven methods to protect your property budgets.
Understand Your Procurement Process
Start by reviewing how energy is procured for your properties. Key areas include:
- Contract terms and length
- Supplier selection criteria
- Rate structures and tariffs
- Renewal and negotiation schedules
- Internal approvals and authorisation processes
EG-Audit helps property professionals map the procurement process to identify vulnerabilities and opportunities for improvement.
Collect Comprehensive Documentation
Gathering all relevant documents is crucial for accurate audits:
- Energy contracts and agreements
- Invoices and billing statements
- Meter readings and consumption logs
- Correspondence with suppliers
- Previous audit reports or benchmarking data
EG-Audit provides structured checklists to ensure all necessary documentation is collected for a complete audit.
Verify Contract Compliance
Check that all charges and invoicing comply with the contract:
- Confirm tariffs and rates match contract terms
- Validate standing charges and additional fees
- Check for discounts, rebates, or adjustments
- Ensure billing aligns with consumption patterns
- Identify any deviations from contract terms
EG-Audit audits each line item to ensure contract compliance and identify discrepancies.
Check Meter Readings and Usage Data
Accurate meter readings are essential for verifying charges:
- Compare invoice readings with actual meter data
- Identify estimated readings that may lead to overpayment
- Check historical consumption patterns for anomalies
- Verify allocation of usage to correct properties or units
- Document findings for evidence-based reporting
EG-Audit cross-checks all consumption data to ensure charges reflect actual usage.
Identify Overcharges and Errors
Auditing energy procurement requires careful review to spot errors and overcharges:
- Duplicate or misapplied charges
- Incorrect application of tariffs or standing charges
- Hidden fees or unexplained adjustments
- Billing errors across periods or properties
- Non-compliance with contract terms
EG-Audit provides line-by-line verification to identify overpayments and support recovery.
Benchmark and Compare Costs
Compare energy procurement costs with market benchmarks to assess fairness:
- Unit rates compared to industry standards
- Standing charges against average supplier fees
- Adjustments and surcharges for compliance with market norms
- Historical comparisons for consistency
- Identification of potential savings opportunities
EG-Audit uses benchmarking to highlight anomalies and potential improvements.
Document Findings and Prepare Reports
All audit findings should be documented clearly:
- Detailed line-by-line analysis of invoices and charges
- Quantification of overpayments or discrepancies
- Supporting evidence for each finding
- Clear summary with actionable recommendations
- Reports suitable for internal or external stakeholders
EG-Audit produces comprehensive reports to guide decision-making and corrective action.
Engage Suppliers for Corrections
Once discrepancies are identified, work with suppliers to resolve issues:
- Present evidence of errors or overcharges
- Request adjustments, refunds, or credits
- Follow contractual or dispute resolution processes
- Maintain written records of communication
- Escalate to independent audits if necessary
EG-Audit supports property professionals through this process to maximise recovery and minimise conflict.
Ongoing Monitoring and Audit
Regular audits ensure continued accuracy and prevent recurring issues:
- Schedule periodic audits to review procurement and billing
- Track changes in tariffs or supplier contracts
- Monitor consumption patterns for anomalies
- Update benchmarking data and compare with market trends
- Maintain transparency and control over energy expenditure
EG-Audit provides ongoing audit support to maintain cost efficiency and confidence in procurement.
Benefits of Following Best Practices
- Reduce overpayments and recover lost funds
- Ensure transparency and compliance with contracts
- Identify savings opportunities and improve budgeting
- Mitigate risks of supplier errors or disputes
- Maintain confidence and control over property costs
Implementing best practices transforms energy procurement from a risk area into a controlled, cost-effective process.
Take Action Today
Energy procurement audits are critical to identifying errors, reducing costs, and ensuring compliance. EG-Audit provides independent, evidence-based audits, benchmarking, and guidance to maximise savings and protect property budgets. Book your audit today to secure clarity and confidence.
What’s next?
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