Forensic Cost Recovery
3 Minute Read
It is understood that historical energy billing can be flawed.
This can be for various reasons; the correct tariff might not have been applied or estimated billing might have been wildly inaccurate or there might even have been faults with the metering unit. There are any number of reasons that the bill you receive might not accurately reflect the energy you have used.
How many invoices are incorrect?
It is thought that there is over a billion pounds in excess charges to be reclaimed across the energy networks.
Why should you consider an energy audit?
Undertaking an audit of your bills yourself is something that might be considered both onerous and complex and therefore many businesses aren’t sure where to start. It is, therefore, a service that is offered by most third-party intermediaries, usually on a no-win-no fee basis with the company undertaking the audit taking a percentage of the cost recovered as the fee for their efforts.
On the basis that there is nothing to be lost from a forensic look into your historical billing and usage, it should be something that businesses should consider, especially if there is no downside for doing so.
The forensic approach
The first part of any audit of payments and invoices involves the collection and collation of data, this will be used to begin the process of analysis and identification of data that isn’t reflective of the pattern of usage that has been built up.
If any discrepancies are identified, then this should be taken up with the supplier involved.
If you have been overcharged for energy, then there will be the recovery of not only the amount paid for the energy, but there might also be recoverable money from VAT overpayments and other additional charges that were based on the incorrect usage. These charges might include:
- Environmental levies
If you have been overcharged, then recommendations should be made to mitigate the risk of further inaccurate billing and payments made for energy, any company providing a cost recovery service should ensure that this is a part of the service they offer.
What you should look out for if it seems to good to be true
Terms and conditions and contract – have you looked carefully over the contract and are you happy with the percentage that the auditing company will take from any costs recovered? Does it seem fair? Are you happy that you are in safe, capable and trustworthy hands?
Who will be looking after your cost recovery project and do they have experience and knowledge within this specific area of work?
How long has the company been in business and do they have appropriate knowledge and experience to offer a forensic approach to recovery? Are they on Companies House and is the information given accurate and up to date?
To find out more about the forensic cost recovery service we offer contact 01737 556631.