Energy consultant finds over $1.2 million in overcharges on natural gas bills!
Billing errors from natural gas purchases can be very hard to uncover. A typical purchase could involved multiple contractual arrangements and transactions at different times like futures contracts, basis contracts, transportation agreements, and spot purchases. These transactions may generate billing from multiple vendors like gas suppliers, interstate pipeline carriers, local distribution companies, and balancing parties.
One of the world’s largest producers of orange juice, a Florida company using INSIGHT’s Contractual RM© since 2007, asked ENCORE to perform a billing audit of their natural gas bills back to contract inception in 2006. After uploading all the client’s contracts, budget and usage information in the INSIGHT’s Utility Risk Manager© and reconciling each bill, ENCORE was able to uncover more than $100K in overcharges from the balancing party and over $1.2 million from the local distribution company.