I've been doing utility bill auditing for 12 years now and lately I'm feeling completely drained. The utilities keep getting more sophisticated with their billing errors while budgets for auditing services keep shrinking. Had three clients this month question my fees even after I saved them a combined $47,000 on their Madison Gas & Electric bills. Sometimes I wonder if I should have stayed in regular accounting. Anyone else feeling like the industry is squeezing out the small independent auditors?
Anyone else getting burned out on this industry?
Susan, I totally get it. Been feeling the same way lately with Idaho Power clients. They want miracles for peanuts and then act like we're overcharging when we find significant errors. Just last week I caught a $12,000 demand ratchet error that had been running for 18 months and the client complained about my 25% contingency fee. The math works out to them paying me $3,000 to save them $12,000 but somehow I'm the bad guy.
The consolidation in our industry isn't helping either. These big auditing firms with overseas analysis teams are undercutting everyone on price while delivering mediocre results. I lost two SMUD territory clients last year to a firm that charges half my rate but completely missed obvious rate schedule errors. Race to the bottom mentality is killing professional standards.
Part of the problem is that younger facility managers don't understand utility billing complexity like the old-timers did. I have clients who think utility auditing is just running some software and printing reports. They don't appreciate the experience it takes to spot the subtle errors that software misses. Had a Nashville Electric Service account where the meter multiplier was wrong for three years - $31,000 in overcharges - but their previous "auditor" never caught it because they just relied on automated analysis.
Ed makes a good point about the knowledge gap. I've been thinking about pivoting into energy efficiency consulting instead of straight auditing. At least with efficiency work, clients can see the value more directly. Duquesne Light has some great rebate programs right now and facility managers understand that saving energy = saving money. With auditing, we're always explaining why finding errors is valuable even though it should be obvious.
Walt, I've been doing efficiency consulting alongside auditing for two years now and it's definitely less stressful. Clients are happy when you help them qualify for Ohio Edison rebates instead of annoyed when you tell them they've been overcharged. The money isn't quite as good per hour but the relationships are much better. Maybe diversification is the answer for those of us getting burned out on the audit grind.
Thanks everyone for the reality check. It helps knowing I'm not alone in feeling this way. Maybe the solution is raising my minimum project size and being more selective about clients. The small accounts that nickel and dime over fees probably aren't worth the stress anyway. Jim, I'd be interested in learning more about the efficiency consulting side - might be time to expand my service offerings.
This thread hits home. I've been with MLGW territory clients for years and the appreciation level has definitely declined. Used to be that finding a $5,000 error got you a handshake and a referral. Now clients act like it's your job to find money and why should they pay for something that "should have been right the first time." The entitlement mentality is exhausting.
Amir nailed it with the entitlement comment. Nevada Energy clients are the same way. They want you to guarantee results upfront but don't want to pay unless you find huge errors. Meanwhile they're happy to pay lawyers $400/hour with no guarantee of outcome. Maybe we need to get better at positioning ourselves as specialized professionals instead of just "bill checkers."
The positioning point is crucial Kim. I've started calling myself a "Utility Cost Management Consultant" instead of just an auditor. Sounds more professional and clients seem to respect the expertise more. Also switched to retainer-based pricing for ongoing clients instead of pure contingency. Much better cash flow and less stress about having to find errors every month to get paid.
Sarah, I like the retainer idea. How do you structure that with clients? Do you still do contingency on top of the retainer for major findings? Idaho Power territory has a lot of agricultural accounts that might be perfect for ongoing monitoring relationships instead of one-time audits.
This whole conversation makes me glad I'm still relatively new to the industry. Sounds like the golden days of easy clients and big contingency fees are behind us. On the flip side, maybe there's opportunity for those of us willing to adapt and offer more comprehensive services. Eugene Water & Electric has been expanding their rate options which creates more complexity and potentially more audit opportunities.