Case Study – Redundant Meters – Annual Cost Avoidance of $18K

Case Study – Redundant Meters – Annual Cost Avoidance of $18K

Overview

As companies grow and add locations, acquire businesses or expand existing sites, most times attention is not paid to the number of utility meters at each site. This can eventually lead to what is called “redundant meters”. These meters would be ones that have no consumption flowing through them, but the client is still being charged a monthly amount based on fixed rates for the “presence” of a meter.

Issue

As these redundant meters are not required due to the fact that the location was reconfigured at some point during a renovation, it is a cost savings to identify these meters and have them removed to avoid future monthly charges.

Action Taken

  1. We run a report for active meters for both gas & electric accounts that show a consistent zero usage to identify redundant meters.
  2. In some cases, we may have to get written permission from the landlord to have the meter removed.
  3. We then contact the utility to have the meters gaped or pulled and the accounts closed.
  4. If the landlord was not in agreement with removing the meter then a request would be made so that the account can be transferred to them as our client is not willing to continue to pay a monthly cost for something that is not required.

Results of Investigation

The resulting annual cost avoidance for our particular client was approximately $18,000.

Conclusion

Most companies are so busy dealing with the growth of business that the little things such as redundant meters is never reviewed. The individual cost of these meters is minimal in the overall picture and they generally are rolled-up into the total cost for the site so they never stand out. However, this is a cost that would accumulate each month and over time would become a much larger figure unless the meters are removed. Could you currently be paying for redundant meters? Contact us and let Powerhouse help you regain peace of mind.

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