Miswired meters can cost tenants hundreds of thousands of dollars. We’ve seen it happen time-and-time again. The mistakes become more common as building owners seek to pass electricity costs directly to tenants.
A sub-metered electricity audit begins with a review of your landlord’s electricity invoices, the meter data, and the billing records. The billing records may reveal the pertinent equipment information, but usually, if not always, the audit should include a site tour. On the tour, we observe the building’s metering equipment and verify the actual electrical loads being metered and sub-metered.
As part of the audit, we will determine if the sub-metered electricity billing is consistent with your lease. Are the meters and sub-meters capturing the proper loads? Is the metering reasonably accurate? Does the accounting follow lease terms? Are the direct sub-metered billings properly deducted from the utility costs included in the building’s operating expenses?
After reviewing the lease, electric invoices, direct billings, and site tour observations, we can prepare a cost analysis. The reporting can include the actual cost of electricity, tenant’s usage of electricity, billing and/or metering issues, and potential or expected recovery. The cost analysis report is distributed to both tenant and landlord, during which time, Chelepis manages the resolution process with the landlord. The Chelepis approach is a complete process managed from beginning to end by an experienced staff that has audited millions of square feet of leased space throughout the country.
A financial institution leased retail space in a commercial office building.
As part of the lease audit, Chelepis visited the property and inspected
the electric sub-meters for the client’s...Read more
Sub-metered Electricity Audits