Hidden savings for hospitality businesses: Reclaiming revenue from energy billing errors

Pippa Harris, Operations Director

Did you know you could uncover hidden energy savings, forecast energy costs, and simplify budgeting?

For hospitality businesses, where margins can be tight, uncovering savings from energy billing errors can make a significant difference.

The surprising reality of energy billing

Once a business establishes an energy procurement contract, it’s easy to assume that billing will be straightforward and accurate. However, as we’ve seen time and time again, billing errors are surprisingly common, even for invoices totalling tens of thousands of pounds. These errors, if left unchecked, can quietly drain financial resources that could be better used elsewhere in your organisation.

Reviewing energy bills is a vital but often overlooked step in effective energy management. Whether the discrepancy involves incorrect tariffs, or incorrectly applied government subsidies, overlooking these details can cost your business significantly.

Why errors are increasing

The complexity of energy billing has grown in recent years, partly due to evolving government subsidies and regulatory changes. Over the past two years, the frequency and magnitude of these adjustments has increased, adding many layers of detail to each and every bill.

For businesses in the hospitality sector, which often face high and variable energy demands, these changes can lead to unforeseen costs or missed opportunities for savings.

Identifying opportunities for savings

Reclaiming lost revenue starts with understanding where billing discrepancies might occur. Here are some common areas to review:

Unit rates and standing charges: Are the charges on your bill consistent with the rates outlined in your procurement agreement?
Climate Change Levy (CCL): Hospitality businesses may qualify for exemptions or reductions based on their energy use and specific operational criteria.
Government subsidies: Recent schemes designed to mitigate rising energy costs can be misapplied or lost, leading to overcharges.

For instance, we helped one client recover an astounding £76,344 by identifying errors in their energy bills within a single month.

While it might not seem like it, it is possible to reclaim your lost revenue by carefully combing through energy bills.

How experts simplify the process

Navigating the complexities of energy bills requires both expertise and attention to detail. At Amber, we meticulously review each invoice, cross-referencing it with contracts, consumption data, and applicable subsidies. When discrepancies are found, we work with energy suppliers to resolve them on our clients’ behalf.

Additionally, our team offers forecasting services, helping you predict future energy costs and consumption patterns. This forward-looking approach not only aids in budgeting but also ensures you’re better prepared for fluctuating energy prices.

A holistic energy strategy

By taking a holistic view of your energy needs, you can uncover additional opportunities to save money, time, and carbon. Energy audits, for example, can reveal inefficiencies in equipment or operational practices that drive up energy use and costs unnecessarily. For hospitality businesses, which often operate around the clock, even small improvements can yield substantial savings.

Why now is the time to act

Being proactive about your energy bills has never been more critical. For hospitality businesses still navigating post-pandemic recovery, every pound saved on operational costs can be reinvested in growth, staff, or customer experience.