Questions About Utility Bills?
We Have Answers.
Even if you’re a master of managing your business’ budget, there’s one financial task that tends to be challenging for everyone. You guessed it, we’re talking about utility bills. Shifting rates, confusing meter readings, and unexpected fees are just some of the reasons why it can be frustrating to understand these bills. Lots of people don’t even read their utility bills and statements, instead just paying them without scrutinizing the details.
That’s a mistake! And a costly one, because understanding the ins and outs of your electric, gas, and water bills can save you a pretty penny. Let’s take a look at some of the most common questions about utility bills to help you make sense of them.
Why Are My Bill So High?
There are several reasons why your bill might be higher than usual:
- Increasing Rates: Utility companies sometimes adjust their rates due to various factors, such as changes in fuel costs, regulatory requirements, or infrastructure improvements. They may not communicate this in a clear way though! If you notice a sudden jump in your water or electric bill, this is the first thing to check.
- Seasonal Changes: Extreme weather conditions, like a very hot summer or a cold snap in the winter, can lead to increased usage of heating and cooling systems. The added demand on your AC or heater will raise your bill.
- Usage Patterns: A change in hours, adding a new shift or facility, new equipment, or other changes in operations can result in new energy usage patterns — leading to higher bills.
- Errors and Overcharges: Utilities typically put the onus on customers to understand the complex rate alternatives that may be available to them and select the most optimal plan for their organization. This leads to many customers being on suboptimal rate plans and getting overcharged as a result.
How To Understand My Utility Bill?
Everyone wants to pay less for utilities — especially in a time of high inflation and economic stress. Understanding the different charges on your bill and the factors contributing to them can help you better manage your costs.
Kilowatt (kW) and kilowatt-hour (kWh): To understand your electricity usage, it’s essential to know how kW (kilowatts) and kWh (kilowatt-hours) are used to measure your energy consumption. First, though, let’s define those terms.
A kilowatt (kW) is a unit of power. It indicates the rate at which electricity is used at any given moment. For example, a 1 kW appliance uses 1,000 watts of power. A kilowatt-hour (kWh) is a unit of energy. It measures the total amount of electricity used over time. For instance, running a 1 kW appliance for one hour consumes 1 kWh of energy.
Your power provider uses both these measures to determine how much power your business is using, and how much energy that power consumes. Then, they bill you for the total energy used to power your operations.
They also use a meter to take these measurements. The meter is read either manually (a utility employee physically checks your meter), by AMR (Automated Meter Reading, using technology to read the meter remotely), or with a Smart Meter (communicates real-time data on energy consumption with the utility provider).
Some additional terminology you might see on your bill includes:
● Fuel Charges: This is the cost of the fuel used to generate electricity. It can fluctuate based on market prices for coal, natural gas, or other fuel sources.
● Demand Charges: These are based on the highest level of power you draw during a billing period. High demand charges can result from using multiple high-energy pieces of equipment simultaneously.
How Can I Reduce My Utility Bill?
Understand Your Energy Consumption: Start by reviewing your bill to understand your consumption patterns. Look at the kWh (kilowatt-hours) used each month and identify any unusual spikes. Are your employees leaving the lights on at the close of business? Are you using new equipment? Understanding your organization’s energy usage patterns is a crucial first step toward lowering your utility bills.
Find Ways to Cut Your Usage: There are plenty of energy-saving measures you can implement that don’t require significant (or any) changes to your operations — but do impact your utility bills. Here are a few examples:
● Upgrading to energy-efficient equipment that consumes less power.
● Invest in insulation and weatherproofing to reduce heating and cooling costs.
● Make a shift to using programmable thermostats to optimize heating and cooling schedules.
● Replace incandescent bulbs with LED lights.
Have a Utility Bill Analysis and On-site Energy Audit Completed: A utility bill analysis is conducted to ensure there are no errors or overcharges on your utility bill. We find that about half of our customers can reduce their utility bills without making any operational changes at all, simply by correcting overcharges on their bills.
An on-site energy audit sometimes called a walk-through energy audit, is an additional method that is used to assess energy-saving opportunities in a building. An auditor may look for air leaks, evaluate insulation, and identify opportunities to upgrade or optimize lighting, HVAC, and other equipment for greater energy efficiency. Some of these are more complicated than others, but they’re all things you can aim to get done over time. With these actionable steps, you’ll see your utility costs drop.
What Should I Do If I Suspect A Utility Bill Error?
If you’ve gone over your bill and something’s just not adding up, it’s time to get some help. Here’s what to do in that case:
- Contact Your Utility Provider: Reach out to the customer service department of your utility company. They can review your bill and explain any discrepancies. Sometimes these things can be cleared up in a single phone call! If not…
- Request a Meter Check: If necessary, you can ask your utility provider to send a technician to inspect your meter for accuracy. Faulty meters can sometimes lead to incorrect billing. If you’re still thinking something is wrong…
- Call UMS: Our team helps businesses understand their utility bills and resolve any issues they may have. We recommended reaching out to us first to save yourself the stress of steps one and two!
To learn more about how the experts at UMS are already helping their clients save money on utilities, reach out to our team today!
