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Utility bills provide a lot of information right, from basic ones like the customer’s (business) name, address, and account number to advanced ones like the utility service used for the particular billing period and the detailed breakdown of charges for the service.
They are simple statements that are easy to read, understand, and interpret data to make necessary decisions. But in reality, utility bills are quite complex. Mainly, when businesses focus on reducing costs and saving money, it can be challenging to understand why they're being charged higher than usual.
In this blog, we've compiled essential information to help you understand different types of utility bills, their components, and tips to reduce costs on utility bills.
A utility bill is a statement that shows the amount a household/ business owes for essential utility services. Utilities include electricity, gas, water, internet, cable, waste management, and sewage.
Utility bill processing gives information about the customer's name, address, account number, service name, meter readings based on the service, and the amount charged in a structured format.
Let’s look at the five common types of utility bills.
There are four main components in an electricity bill.
Electrical meters measure the consumption of electrical energy in kilowatt hours or kWh. A kilowatt hour equals the amount of energy used by a 1000-watt appliance running for an hour.
A water bill comprises three main components.
Water meters measure the consumption of water in cubic feet. This is then converted to gallons by multiplying cubic feet by 74.8.
For example, 100 cubic feet = 100×74.8 = 748 gallons.
Ensure no water leaks to avoid wasting a significant amount of water every day. If you notice water pooling in the sink or toilet seat, fix the leak by contacting a plumber immediately.
Turn off your faucets when not in use. For example, while brushing your teeth and shampooing your hair, don't waste water by keeping your faucets on. Be mindful and turn off the faucet whenever possible.
Try to collect rainwater in a barrel and use this to water your plants and lawns. This reduces the amount of tap water being used.
Water used to wash and boil veggies can be reused to water the plants and gardens.
Cover the pool to prevent water from getting evaporated by the sun, especially during the summer seasons.
Using a dishwasher saves more water than washing utensils by hand. Also, clean large pieces of food before loading in the dishwasher.
There are three main components in a gas bill.
Gas is billed to customers in Therms. However, utility meters can't read therms, so the gas volume is first measured in Centum Cubic Feet (CCF). This CCF is then converted to therms for billing. 100 CCF is approximately equal to 1 Therm energy.
Try lowering the thermostat by each degree and get adjusted to it. This is one of the most obvious ways to lower your gas bill. According to the Department of Energy, save as much as 3% on your gas bills for each degree you're lowering the thermostat.
Stay warm by wearing a sweater and use socks to cover your feet. Try to cover using more blankets at night to feel the warmth.
Investing in a smart thermostat allows you to turn it down from anywhere using Wi-Fi. Adjust the thermostat according to your needs, even when you're away from your home or business place.
Avoid cold air seeping into the room by closing the windows and doors promptly.
Choosing a suitable bundled service can save you money as you'll be given promotional offers and discounts. The key here lies in selecting the bundled service according to your needs.
Some common bundled services are:
Negotiating and getting better deals is possible, but it requires some groundwork.
The first step is to research your Internet service provider's (ISP) competitors in your area. See what each competitor offers, their deals, and additional services. Have this data ready in your hands.
Contact your current ISP and ask if they can connect you with the customer retention team or representative. Most importantly, try to get on a call instead of mail to save time and negotiate better.
Leverage the knowledge gained from your research process and speak politely with the respective person. Tell them you're considering switching to an alternative ISP due to their better deals. Drop the competitor's name and their offer in the conversation.
Any service provider would look for ways to retain existing customers rather than acquire new ones, especially if you're an ideal customer. You'll get better deals and a reduction in your costs.
Even if it doesn't work out, try again to see if another representative from the team is willing to work with you and offer discounts or deals. But don't give up in the first go.
There are two main components in a waste generation bill.
Wastewater is measured in gallons, whereas solid waste is measured in kilograms or tonnes.
Waste generation bills increase based on the frequency of trash pick-ups and the volume of a business's waste.
Ditch one-time-use products like disposable paper cups and plates. Use glass bottles to drink water instead of canned water bottles and steel plates instead of disposable ones.
Going paperless as a document-heavy industry can seem difficult, but doing so would reduce the significant amount of waste generated. This step saves money and is environmentally friendly.
Understand the different types, quantities, and sources of waste generated to segregate it properly. You can use colour-coded dustbins to separate metal, paper, wood, and plastic waste. Educate employees/tenants on your waste management plan and empower them to do the same.
Paper waste, metal waste including steel, copper and aluminium, wood, and electronic waste can be sold to recycling companies to recycle them.
Here are the common terms you must know before reading the utility bills.
Finding irregularity or inaccuracy in utility bills and decoding the causes can help you save money and correct mistakes. They include:
Shifts in the seasons may cause a spike in your energy usage, such as using the thermostat and air-conditioners too much during winter and summer, respectively. Otherwise, appliances that are aging may be using more power than usual. So, ensure all the appliances in your facility are working properly.
Meter installations need to be verified frequently. Otherwise, it may show incorrect meter readings. Even if your meter runs without any problem, the meter's reading capabilities, damage, or communication failures can sometimes bring inaccurate readings.
Billing errors can happen due to various reasons.
Utility bills vary each month depending on the area you live in the country, seasonal changes, and the increase in energy usage.
But, collect the past year's utility bills and track down what has been paid each month. Add up each month's bill and divide by 12 to see the average.
Set aside 10-15% of your monthly income to be on the safer side. If you pay bills annually, allocate a month's earnings to pay utility bills. For example, if you earn $3000 monthly, allocate $300-450 or $3000 annually for utility bills.
When budgeting for utility bills, the crucial thing you shouldn't miss is seasonal variations. Seasonal peaks can increase the usage of appliances. So, always expect a spike in your bills when the season shifts.
Scaling your business requires two main efforts: reducing costs on unnecessary things like utility bills and investing in tools to improve efficiency. With Docsumo, analyze data from thousands of utility bills to look for the possibilities of reducing costs.
Plus, digitize paperwork, store data effectively, and gain insights to make strategic decisions. Start your 14-day free trial to digitise utility bills and other documents.