Effective Utility Management in 2018
Utility costs can rank as high as the second (2nd) or third (3rd) largest cost for a company, while ranking at the top of the list for most important costs to be managed. In spite of this, there is often little thought given to the management of invoices, services, and costs. We flip the lights on and expect the office to come alive; the lights, the POS, cash registers, servers, computers, and all other devices to continuously hum and, in recent years, the all-important Carbon footprint monitoring and reporting has been added to the management mix.
With all of the responsibilities each department handles on a daily basis, typically an invoice is paid to ensure the utilities stay on without reviewing them upfront. In fact, most often a usage issue is not identified until the end of month reporting, and the lack of information is not evident until the financial department of the organization asks about the increase in usage. Typically, when the usage is questioned, someone in Accounts Payable has to pull the invoices and manually enter the necessary data. You are probably wondering “how can the lack of information and untimely reporting be turned around to have all needed information on hand?” The bigger question is “how can the spikes in usage be identified and resolved before the end of the month reporting?” Both of these questions can be answered and resolved with a superior Utility Expense Management program.
So what constitutes a superior Utility Expense Management program?
1. Determine by meter number, the type of meter. This involves the designation of the meter as gas, electric, water, and sewer.
2. Monitoring the usage for each meter. This involves tracking each meter by service type and usage type, i.e. gas, therms or CCS, electricity by kWh.
3. Comparing the data year over year.
4. Identifying spikes in usage. This could lead to very large refunds once the meter is tested and it is determined that the spike is a billing error.
5. Optimize in deregulated states and then track savings each month.
6. Track your budget versus actual and year to date spend to identify any unplanned anomalies in usage.
7. Compare your usage to other locations of the same size to identify possible areas of refurbishment at the location that could gain efficiencies in the usage.
8. Compare your usage to the same time the previous year to identify possible overages due to usage at the site or due to errors in the billing.
9. Identify spikes that are related to weather by using weather normalization data.
Most companies won’t have the time to do all of these steps, but may be able to do one or two that will help save money and identify overages. Having the right Utility Expense Management Company will not only monitor usage, but will identify and reconcile overcharges and optimize services in those deregulated states. We provide a superior Utility Expense Management service for clients with locations both domestically and globally. RadiusPoint can augment your current staff by providing information to make quick and knowledgeable business decisions about the utility services and costs when monitoring your electric, gas, water, and sewer costs and consumption. Having a company like RadiusPoint monitor and manage your utilities can not only keep the lights on, but it can also assist you in becoming more energy efficient.
Watch for upcoming articles that will provide more insight into these services in the coming weeks. In the meantime, if you would like to learn more about our services and how RadiusPoint can save you time and money, please visit our website or contact us today!