At Powerhouse, we track and calculate a lot of figures for our clients. “The two most important ones are Cost Recovery and Cost Avoidance. A lot of our clients at the beginning of our relationship don’t know what either of these terms really mean, but they learn quickly because both terms result in money in their pocket.
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Cost Avoidance is when we identify issues with a utility account that we can make repairs or changes in an effort to avoid future costs.
Examples of these include;
- A water leak that is repaired
- A change in a rate category for billing
- Gas left on to units during the Summer
For issues such as these, the client will “avoid” paying increased costs going forward as the issue has been identified and corrected. One of our larger clients have avoided paying $1.1M in additional costs because of the efforts of Powerhouse staff.
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Cost Recovery is when we identify issues with a utility account and the result is that the utility provider then makes corrections on the account going back for a certain period of time. This results in recovery of past costs.
Examples of these include;
- An account not being assigned a rebate that they are entitled to
- A client paying for a meter that they should not have been
- Landlord billing incorrectly for check meters
For these type of issues, the utility/landlord signs checks to the client for previous billing errors. This is found money for our clients that can go against their financial bottom line or be earmarked to assist with future energy initiatives. For the same client mentioned above, we have successfully recovered $1.4M for them.
What could you use a total of $2.5M for within your company?
Please reach out to us for more info by calling me at 1-866-741-0012 or fill out our contact form!!