The first step to electricity revenue management is the establishment of a bidding system. By establishing a bidding system, all utility companies that sell energy to customers are forced to compete for your service. Without competition, it becomes difficult to raise the revenues necessary to pay for ongoing expenses and invest in new infrastructure. Auctions can be established at the gas, electricity, or gas and coal suppliers; however, for the majority of gas and coal suppliers, the bidding process is done on the retail level. Bidding for gas and coal supplies can be done at the retail outlets or can be done online.
It is important to keep in mind that when you use a utility number or ask for advice regarding the billing of a particular bill, you are legally obligated to use this number for all bills and charges. If you cannot verify your billing information with the supplier who issued the original bill, you may be subject to an investigation by the utility company. It is important that you keep a record of your receipt numbers and the date of each billing period on your utilityname and servicetype records.
monthly electricity revenues
For many customers, the most logical choice when calculating their monthly electricity revenues is to multiply the amount of energy used by the average number of kilowatts (kWh) used per month. This is an effective way of calculating the revenue needed to cover ongoing expenses. In order to determine the revenue needed per unit of electricity delivered, it is necessary to determine the level of consumption per unit of time. For example, if you have a set amount of time during the day that you take a shower, use the telephone, watch television, etc., you should multiply your daily total consumption by five. This will give you the amount of energy needed to power these activities and allow you to determine how many cents per kilowatt hour (kWh) your household needs to be billed for.
expenses per unit of electricity sold
The average revenue per kilowatt hour is between nine and ten cents. If your expenses per unit of electricity sold is close to this figure (for example, if you spend about three hours on the telephone using your cellular service, and you are charged eight minutes for your water and electric consumption), you should expect to be billed for around eight cents per kilowatt hour. This means that if your water and electric consumption is around four hundred thousand kilowatts per year, you should expect to be billed for around six hundred dollars worth of revenues, or about five percent of your yearly bill.
In a normal business arrangement, you would bill your wholesaler periodically based on the amount of sales earned. With a normal supplier, your supplier would invoice you monthly for both the billed amounts and the unbilled amounts. With a wholesaler, however, you are usually charged for the unbilled portion only – which will be due the following month as an invoice under Accounts Receivable Renewal.
For example, if you sell your energy consumption at an average of ten kilowatts per hour, you would be billed approximately twenty-one dollars per month for your electricity sales. Assuming that you have no outstanding bills to pay, you will receive this amount automatically every month. However, if you notice that you have an unpaid bill – say for a plumbing repair, for instance – you will need to contact the supplier who provided you with your account to see if you can extend the Comrev Sales Agreement between the wholesaler and you to cover the invoice. Some suppliers will be willing to do this; others will not. The most important thing to remember is that your Accounts Receivable Renewal, the monthly invoice that you receive from Comrev, must be paid even if your supplier extends Comrev Sales Agreements to you – it is a basic rule of wholesaling.