[Case] Data monitoring found revenue leakage of more than $200 000
By automatically monitoring smart meters, a medium sized electric utility in Iceland was able to find over $200,000 in revenue leakage and ensure that the leak was stopped.
4 weeks From project scope to revenue leak stopped.
3 controls Implemented stopping three unique causes of leaks.
Over $100,000 estimated in yearly savings.
A mid-sized electric utility in Iceland had been deploying smart IoT meters for few years to their B2B customers. The smart meters report usage every hour and the usage is counted against the client's contract.
The CFO reached us at exMon to ensure that the usage would end up correctly on invoices.
The client set up a trial of exMon and connected it to their source data. Consultants from Expectus helped analyze the data and find the main reasons for revenue leaks. After prioritizing the results, three controls were implemented.
Three main reasons for revenue leakage were found:
Meters were deployed and returned usage regularly, but were not assigned to any customer contract. The single biggest loss was a meter that had logged usage for 4 years without being invoiced. The total un-invoiced usage for that meter amounted to over $200,000.
Few meters had been deployed but were not sending back usage data.
Some meters were incorrectly labelled as testing/demo meters, and therefore not invoiced.
Three controls were deployed in the project to ensure that the three leaks above were stopped. Every week the revenue assurance team at the utility company receives notification of all meters that are not correctly defined or are not sending usage data.
The customer estimates that these three controls save over $100,000 in revenue leakage every year.
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