Found something uncomfortable. While auditing a large office complex in Tampa on TECO, I discovered that the utility has been undercharging my client for the past 2 years due to a wrong meter multiplier. The client is paying about $3,000/month less than they should be. When I told the client, he said "forget you saw that and just focus on finding overcharges." He basically wants me to ignore the undercharge. What are my obligations here?
Client wants me to hide an undercharge — what do I do?
This is one of the most important ethical questions in our profession. You are not obligated to report the undercharge to the utility — you work for the client, not the utility. But you ARE obligated to inform the client of the risk. If the utility discovers the undercharge on their own, they can backbill for the full amount. In Florida, TECO can backbill up to 3 years for underbilling. Your client could face a surprise bill of $72,000 or more. Document your finding in writing, explain the backbilling risk, and let the client make the decision. If the client chooses to stay quiet, that's their call. But make sure your written report shows that you identified and disclosed the issue.
Randy covered the ethical side well. Practically speaking, the utility WILL eventually catch it — meter audits, billing system upgrades, or a routine meter test will surface the multiplier error. When they do, the backbill will be painful. I'd strongly advise the client to proactively contact TECO, get the multiplier corrected, and negotiate the backbill period. Utilities are often more lenient when the customer self-reports versus when the utility catches it.
I had this exact situation in Georgia. Client wanted to ride the undercharge. Georgia Power caught it 8 months later and backbilled 2 years. The client was furious — not at the utility, at me, even though I had warned him in writing. Protect yourself with documentation.
Sent a formal memo to the client documenting the undercharge, the backbilling risk, and my recommendation to self-report. Whatever he decides, I'm covered. Thanks for the guidance.
Smart move getting it in writing. CYA is always the right call.