Improving energy billing processes

An integral aspect of achieving efficiency, reducing cost and preparing for the legal requirements of Carbon Reduction Commitment is the ability to process large volumes of complex billed data. There is a compelling business case to improve the electronic transaction capability and capacity across London councils in terms or receiving, processing and validating consolidated energy bills.

Across London, a common complaint is that utility suppliers provide poor quality invoicing. LEP's borough self-assessment plan has found that electronic transaction and financial management continues to score poorly and has shown little improvement, whereas other energy procurement and management activities have improved by around 20%.

The benefits of implementing a consolidated e-invoicing solution across London and increasing the use of energy management software and integration of validated bills into councils' financial management systems could result in approximately £3.7 million efficiency gain, and

• Maximise cost recovery from erroneous invoicing and automating the Purchase to Pay process for utilities
• Reduce paper bills, individual site payments and associated costs
• Maximise efficiency gains from identifying inappropriately applied tariff and other charges and avoidance of late payment fees
• Streamline data flows from energy management systems into financial and accounts payable systems & processes
• Release staff from processing bills and data entry to identifying energy waste and controlling cost
• Enable councils to effectively respond to new regulations regarding energy reporting and carbon reduction.

To support this work, LEP will work with stakeholders to:

• Define best practice in bill validation & energy management reporting
• Develop a clear savings methodology and transparent reasons for change
• Improve provider data quality & management information
• Develop the optimum approach to processing & paying high invoice volumes
• Adopt consolidated electronic bill validation standards to eliminate erroneous invoices.