I've been doing utility audits in Chicago for years but just started looking at telecom bills more closely. Found some strange charges on a ComEd commercial account - they're billing for "Enhanced Network Services" at $47.85/month that the client never ordered. Anyone else seeing phantom telecom add-ons from major utilities? This is separate from their electricity service but shows up on the same bill.
ComEd telecom charges - anyone else seeing weird line items?
Yep, seeing this all over Indiana too with Duke Energy and AEP. They bundle telecom services and half the time customers don't even know what they're paying for. I found one client paying $89/month for "business communication package" for three years - turned out to be basic phone service they could get elsewhere for $25. Got them a $2,300 refund. These utility companies are getting into telecom as a revenue stream and the billing is often deliberately confusing.
Arizona Public Service does the same thing here in Phoenix. What really gets me is they bury these charges in the middle of a 12-page bill between demand charges and power factor adjustments. Customers assume it's all electricity related. I've started requiring clients to provide telecom bills separately so we can audit them properly. Found over $15,000 in bogus charges last year alone just on telecom line items.
This is why I always tell clients to review EVERY line item. Duquesne Light here in Pittsburgh started offering "smart building solutions" which is basically overpriced internet service. One manufacturing client was paying $340/month for 50Mbps when they could get gigabit fiber for half that price. The utility companies know most businesses don't scrutinize these supplemental services.
Good point Walt. I'm thinking about expanding my practice to include dedicated telecom auditing. The margins are probably better than traditional utility work since there's less competition. Anyone here already doing full telecom audits? What's your typical recovery rate compared to electric/gas?
I've been doing telecom work for about two years now in Ohio. Recovery rates are actually higher - around 25-30% compared to 15-20% on electric bills. The problem is telecom contracts are more complex and you need different expertise. But once you learn the common billing errors, it's very lucrative. FirstEnergy tries to sell "energy management communications" that's just basic cellular service at premium rates.
Jim's right about the complexity. You need to understand T1 circuits, SIP trunking, data plans, long distance rates, regulatory fees. But the payoff is worth it. I just recovered $8,400 for a client who was paying for 23 phone lines when they only had 12 employees. The telecom provider kept billing for disconnected lines for over a year.
That's exactly what I'm talking about. These companies count on customers not understanding the technical details. I found a restaurant chain paying for "enhanced 911 services" on every location at $15/month each when basic E911 is included free with most business lines. Recovered over $12,000 going back three years. The devil is definitely in the details with telecom billing.