Spotting Errors & Overcharges: A Practical Guide

Billing errors and overcharges are more common than many property professionals realise. Landlords, project managers, and facilities managers frequently encounter inflated service charges, misallocated energy costs, and unexplained utility fees. Identifying errors early protects budgets, prevents disputes, and ensures operational efficiency. EG-Audit equips you with the knowledge and evidence to spot mistakes quickly and act confidently.

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Common Errors in Service Charges

Service charges often include multiple cost categories. Errors can occur at any stage, from calculation to allocation. Common mistakes include:

  • Incorrect Apportionment: Costs not fairly split among tenants, resulting in overpayment by some.
  • Unverified Invoices: Charges added without supporting documentation.
  • Duplicate Billing: Services or utilities charged more than once.
  • Misclassification: Non-recoverable expenses wrongly included.
  • Calculation Errors: Mistakes in VAT, unit costs, or service periods.

Regularly reviewing service charges with an independent audit ensures these errors are identified and corrected promptly.

Energy Billing Mistakes

Energy invoices are often complex, combining consumption charges, standing charges, environmental levies, and contract adjustments. Common energy billing errors include:

  • Metering Errors: Incorrect readings, estimated usage, or duplicate entries.
  • Tariff Misapplication: Using outdated or incorrect rates.
  • Hidden Surcharges: Unexpected fees added without notice.
  • Contract Misalignment: Charges inconsistent with agreed terms.
  • Unit Conversion Errors: Miscalculations when converting kWh or therms.

EG-Audit reviews contracts, meters, and invoices to ensure every kWh and therm is billed accurately.

Utility Billing Irregularities

Utilities beyond energy—such as water, waste, and telecoms—can hide errors and overcharges. Common issues include:

  • Overestimated Consumption: Billed usage higher than actual metered amounts.
  • Duplicate Services: Fees applied for services already included elsewhere.
  • Incorrect Tariffs: Standing charges or rates misapplied.
  • Billing Lag: Delayed invoices causing confusion in cost allocation.
  • Service Overlaps: Multiple charges for the same utility period or property.

Regular scrutiny and auditing ensure facilities managers and landlords pay only for services actually received.

Business Rates Errors

Business rates are often overlooked until large bills arrive. Mistakes are common and can include:

  • Rateable Value Misclassification: Incorrect property size, use, or valuation category.
  • Missed Reliefs: Small business relief, charitable relief, or exemptions not applied.
  • Billing Inconsistencies: Incorrect periods, duplicate charges, or arrears misapplied.
  • Overpayment Recovery Missed: Failure to reclaim historical overcharges.

EG-Audit identifies these issues, allowing property professionals to recover costs and ensure compliance.

Red Flags to Watch For

Certain patterns indicate potential errors or overcharges. Watch for:

  • Unexpected spikes in charges compared to previous periods.
  • Invoices lacking detailed breakdowns.
  • Multiple small adjustments that cumulatively increase the total.
  • Charges inconsistent with contracts or agreements.
  • Repeated corrections or revisions from suppliers without explanation.

Noticing these red flags early allows you to request clarification, and where necessary, initiate an audit.

Practical Steps to Identify Errors

  • Gather all relevant bills, invoices, and contracts.
  • Compare charges against contract terms and agreed rates.
  • Review historical billing patterns for anomalies.
  • Check unit rates, VAT, and consumption calculations.
  • Flag any discrepancies for independent review.

EG-Audit takes these steps further by applying forensic checks, benchmarking against market standards, and delivering clear, actionable reports.

Benefits of Spotting Errors Early

  • Prevents overpayment and protects budgets.
  • Reduces disputes with landlords, tenants, or suppliers.
  • Improves operational transparency and trust.
  • Provides evidence for negotiation or recovery.
  • Enhances confidence in financial management.

Early detection is not only cost-saving; it also strengthens professional credibility and operational control.

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Take Action Today

Errors in billing happen to all property professionals. EG-Audit provides independent audits that uncover mistakes, quantify overcharges, and give you evidence to act. Don’t wait for another bill to arrive; take control now to safeguard your budgets and reduce risk.

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