Need advice on presenting some really bad news. Found a CT ratio error that's been costing my client about $3,200/month for the past 18 months. Total exposure is around $57K. How do I present this without the client freaking out about why it took so long to find?
Presenting bad news - major billing errors
Lois, lead with the solution not the problem. Start with "We've identified an opportunity to recover approximately $57,000 in overcharges and prevent future losses of $3,200 monthly." Frame it as good news that you found it before it went on longer.
Randy's absolutely right about the framing. Also be ready with a clear timeline for resolution. CT ratio errors usually get fixed fast once you notify the utility, and they'll typically process refunds pretty quickly too.
Had a similar situation last year with a Duke Energy account. $40K in CT errors over 2 years. Client's first question was "why didn't Duke catch this?" I explained that utilities process millions of bills and these systematic errors can slip through. That's exactly why audits exist.
Brenda makes a good point about explaining why these happen. I always include a brief explanation of how CT ratios work and why errors occur during equipment changes or system upgrades. Helps them understand it's not gross negligence by anyone.
All great advice here. Lois, also document everything thoroughly before you present. Have the billing calculations, meter photos if you took them, and the utility tariff sections ready. Big recovery amounts always generate lots of detailed questions.
Don't forget to emphasize the ongoing savings. $3,200 per month adds up to almost $40K annually going forward. Sometimes the future value is even more impactful than the recovery amount, especially if budgets are tight for next year.