What Does True Billed Mean on Your Utility Bill?
Unpack "true billed" on your utility bill. Understand how actual usage is calculated, differs from estimates, and how to verify accuracy.
When examining utility statements, understanding the term “true billed” is important for consumers. This concept refers to billing based on the precise amount of a service that was actually used, rather than a projected amount. Utility services such as electricity, natural gas, and water often utilize this method to ensure customers pay for their exact consumption.
Defining True Billed
“True billed” signifies that a utility statement reflects the exact quantity of service consumed during a specific billing period, ensuring charges are directly tied to actual usage and providing transparency. For instance, an electric bill is based on the kilowatt-hours (kWh) of electricity precisely used, or a gas bill on the therms of natural gas consumed. This method contrasts with billing approaches that rely on predictions or historical data.
This precision is typically achieved through meter readings, which capture the volume of a utility service that has passed through a customer’s connection.
How True Billing Works
True billing begins with a utility meter, which records the consumption of services like electricity, gas, or water. The meter continuously tracks usage. To generate a bill, the utility system obtains a meter reading for each service point around the scheduled date. This data provides the consumption information necessary for accurate billing.
Methods for obtaining these meter readings vary. Traditionally, utility personnel manually visit properties to inspect meters and record readings. Modern advancements include automated meter reading (AMR) systems, where data is collected wirelessly by driving or walking past a property. Advanced metering infrastructure (AMI), often called smart meters, can transmit usage data wirelessly and automatically to a central collection point at predefined intervals, sometimes hourly, eliminating physical visits. Once consumption data is transmitted, the utility processes it by multiplying the measured consumption (e.g., kWh, therms, gallons) by applicable rates and adding fixed charges to calculate the total amount due.
True Billed Compared to Estimated Billing
True billing offers a precise reflection of consumption, contrasting with estimated billing. Estimated billing relies on projections of a customer’s usage, often based on historical patterns, seasonal weather, or average usage for similar properties. This method is typically employed when an actual meter reading cannot be obtained, such as due to inaccessible meters, adverse weather, or hard-to-reach locations.
When an estimated bill is issued, it may not perfectly align with actual usage. This can lead to a subsequent adjustment, known as a “true-up” or “reconciliation” bill. A true-up occurs when an actual meter reading is obtained, and the utility calculates the difference between estimated and actual consumption. If estimated usage was lower, the customer will owe the difference. If higher, the customer may receive a credit on a future bill.
Verifying True Billed Statements and Ensuring Accuracy
Consumers can take steps to verify if their utility statement is true billed and to ensure its accuracy. A true billed statement will typically include specific details such as the dates of the previous and current meter readings, along with the actual numerical readings from the meter itself. The statement should also clearly indicate the calculated consumption for the billing period, which is the difference between these two readings.
To confirm the accuracy of a true billed statement, customers can compare the current meter reading listed on their bill with the reading displayed on their physical utility meter, if it is safely accessible. It is important to ensure the reading corresponds with the correct meter to avoid disputes. If a discrepancy is found between the bill and the physical meter, or if there are any questions about the charges, contacting the utility provider promptly is advisable. Understanding the rate structure applied to consumption, which is often detailed on the bill, can also help in verifying the calculated cost of usage.