These definitions explain common billing concepts. Your actual utility tariff, supplier agreement, meter records, and applicable rules determine how a charge should be calculated.

Audit basics

Utility bill audit / utility billing audit

A review of billed charges against supporting records, tariffs, and supplier agreements. A commercial utility bill audit examines what the business was charged and whether those charges were supported.

Utility auditor / utility bill auditor

The person or team reviewing the bills and evidence. Ask an auditor to explain the scope, calculations, fee, and documentation needed before recovery work begins.

Utility billing error / utility overbilling

A potential mismatch between a billed amount and the amount supported by the governing terms or records. A higher bill alone does not establish an error.

Utility versus supplier

The utility generally operates the delivery network. In markets with supplier choice, a separate supplier may sell the electricity or natural gas. Charges can appear together on one bill.

Tariff / rate schedule

The published terms and calculation rules for a utility service. The version effective during the disputed billing period matters.

Rate classification

The category used to bill an account, based on criteria in the applicable tariff. Eligibility for another rate must be supported by the business’s circumstances during the relevant period.

Supplier contract billing review

A comparison of supplier charges with the signed contract, renewal notices, and authorized adjustments. A fixed supply rate does not necessarily fix every charge on a utility bill.

Electricity bill terms

Kilowatt-hour (kWh)

A unit of electricity used over time. For example, a 1-kilowatt load operating for one hour uses 1 kWh.

Kilowatt (kW)

A unit of power. Bills may use kW to describe demand, rather than the total energy consumed during the month.

Energy charge

A charge tied to electricity consumption, often calculated using kWh and an applicable rate.

Demand charge

A charge based on billing demand under the rate schedule. Reviewing it can require meter demand, multipliers, and tariff calculations.

Demand ratchet

A rule that can use demand from earlier billing periods when setting current billing demand. Low current usage therefore does not automatically make the current demand charge incorrect.

Time-of-use pricing

Rates that vary by defined time periods. An audit checks that usage and charges align with the applicable periods and terms.

Interval data

Meter measurements recorded at repeated intervals. These can help explain demand peaks and how usage is allocated across time periods.

Meter multiplier

A factor used with meter readings to determine billed usage or demand. The correct factor depends on the metering arrangement.

Natural gas bill terms

Ccf and Mcf

Volume units: Ccf represents 100 cubic feet and Mcf represents 1,000 cubic feet. Volume is not the same as heat energy.

Therm and dekatherm

Heat-energy units. One therm is 100,000 Btu, and one dekatherm equals 10 therms. Bills may convert measured gas volume into energy units.

Heat-content factor

A factor reflecting the gas’s energy content. Natural gas billing review may examine the conversion factor and any applicable pressure adjustments.

Estimated meter reading

A reading based on an estimate rather than a current actual measurement. Later adjustments and the account history need to be reviewed before concluding that an overpayment occurred.

Recovery and recordkeeping

Historical utility bill audit

A review of past billing periods. A three-year utility bill audit examines up to 36 months of records where available; it is not a promise that every period qualifies for a refund.

Utility overcharge recovery / utility refund recovery

The process of pursuing a supported overpayment claim through the responsible utility or supplier. A correction may result in a refund or an account credit.

Refund versus account credit

A refund returns money; an account credit reduces an account balance or future charges. The outcome and handling depend on the claim and applicable process.

Contingency recovery fee

A fee tied to an actual recovery. Rebate Energy’s standard fee is 30% of historical refunds or credits actually recovered, with no recovery fee if nothing is recovered. The signed agreement controls.

Letter of authorization (LOA)

A document authorizing specified account-related activity, such as requesting records or discussing a billing dispute. Its scope should be clear before it is signed.

Billing dispute

A documented challenge to a specific charge or calculation. A strong submission identifies the billing period, disputed amount, applicable provision, and supporting evidence.

Further reading

Technical background: U.S. Department of Energy utility-rate guide and FERC energy glossary. These references explain terminology; they do not determine an individual customer’s refund eligibility.

Read your bill with confidence

Start with the date, unit, and rate.

Utility billing terms are easier to understand when you connect them to a specific line on a statement. Look first at the service period, the quantity billed, its unit, and the price used in the calculation.

This glossary explains common terms for a commercial utility bill review. Your actual tariff and supplier agreement determine how those terms apply to the account.

Put the definitions to work

If a line item is unclear, record its exact label and billing dates before comparing it with another month. A changed label is not proof of a changed charge, and a similar label does not guarantee the same calculation. The supporting tariff, contract, and meter records provide the context.

For a deeper explanation, explore our commercial electricity audit and natural gas audit pages. To investigate past periods, see the three-year historical review.