In recent times, the UK has witnessed a significant increase in the uptake of forensic bill analysis, also known as historical bill analysis or bill validation. This trend has been driven by advancements in AI and the introduction of the TPI (Third Party Intermediary) code of conduct into the UK energy market.

What is Historical Bill Validation?

Historical bill validation involves auditing past utility bills to identify discrepancies and recover overpayments. Here’s a closer look at the process:

Scope of Audit:

• Covers electricity, gas, and water invoices.
• Can review up to six years of billing history, allowing for the identification of long-standing errors.
   

Detailed Analysis:

• A line-by-line audit of historical utility invoices is conducted.
• Complex, regionally dependent distribution and transmission charges are validated.
• Each charge element from source data using historical rates is reconstructed and verified. 
   

Error Identification

Each audit aims to uncover various types of billing errors, such as:

• Incorrect tariffs
• Estimation errors
• Anomalies in consumption data
• Omissions and leakage
• Incorrect application of allowances under schemes like Climate Change Agreements (CCAs)
   

What is the TPI Code of Conduct?

The UK Third Party Intermediary (TPI) code of conduct is a set of guidelines designed to ensure transparency and fair treatment for customers dealing with energy brokers and other intermediaries. Key points in the code of conduct include:

• Transparency and Fair Treatment: The code requires TPIs to provide clear and accurate information to customers, ensuring they understand the terms and conditions of energy contracts.
• Accreditation: TPIs must be accredited under the code to operate, which involves adhering to specific standards and practices.
• Customer Protection: The code aims to protect customers from misleading practices and ensures that TPIs act in the best interest of their clients.
• Regulatory Oversight: The Retail Energy Code (REC) oversees the implementation of the TPI code of conduct, ensuring compliance and addressing any breaches.
   

For more detailed information, please refer to the Retail Energy Code’s publication on the TPI code of conduct and Ofgem’s TPI programme.
  
 

"Forensic bill analysis, when conducted in line with the TPI code of conduct, not only ensures transparency and accuracy in utility billing but also empowers businesses to recover overpayments and enhance their financial management. This rigorous approach helps build trust and integrity in the energy market, ultimately benefiting both consumers and suppliers." Alex Randall - Senior Business Development Leader at Johnson Controls.

Why Now?

Nearly all energy consumers have faced significant price spikes in recent years, following events like COVID-19 and the invasion of Ukraine. This renewed focus on energy costs has revived a service that was once tarnished by unscrupulous energy brokers. These brokers often offered “free services” as a “foot in the door” before coaxing customers into overpriced energy contracts with exorbitant commissions.

Thanks to the TPI code of conduct, introduced and supported by energy suppliers in March 2022, the TPI market has cleaned up its reputation, which has reignited a resurgence in forensic bill analysis.
  

Benefits of Forensic Bill Analysis

The proven benefits of forensic bill analysis include:

• Recovery of Overpayments: Once discrepancies are identified, we work to recover overpayments from utility companies. This can result in significant financial savings for businesses.
• Improved Cash Flow: By ensuring that businesses are only billed for the energy they actually use, forensic bill analysis helps improve cash flow and revenue management.

It is well known within the energy industry that utility providers often make their bills overly complex and prone to errors. In fact, one of our clients recently received a rebate of over £140,000 by submitting their energy bills to a forensic analysis by our team of energy experts.

If you are looking to uncover potential savings and improve your financial management, forensic bill analysis could be the solution you need.

Get in touch with our team today to see how we can help you reduce your energy costs.