How to calculate if a certain electricity bill is a higher charge than another?

[Moss2076]

I have a math question regarding comparing three sets of figures relating to an electricity bill. I am trying to help a friend with her electricity bills as she believes she is being overcharged by the company with her Estimated Billing.

My maths is not very good, so I am asking for help with this question/problem -

There are a total of 51 electricity statements dating back over the last few years.

1. Estimated Billing has a total meter increase of 38582 and a total consumption charge of $4648 from 37estimated statements.
2. Meter Reader Billing has a total meter increase of 15344and a total consumption charge of $1611 from 10 meter reader statements.
3. Customer Read Billing has a total meter increase of 12334 and a consumption charge of $1658 from 4 customer read statements.

Is there a way that to find out if the Estimated Bill works out to be more expensive on average than the other two types of bills? The consumption charges are the same for the three types of bills. Is it a simple case of just working out the average?

Many thanks,

Moss

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Last edited by skipjack; May 25th, 2016 at 03:51 PM.

 

[stapel]

I have a math question regarding comparing three sets of figures relating to an electricity bill. I am trying to help a friend with her electricity bills as she believes she is being overcharged by the company with her Estimated Billing.

My maths is not very good, so I am asking for help with this question/problem -

There are a total of 51 electricity statements dating back over the last few years.

1. Estimated Billing has a total meter increase of 38582 and a total consumption charge of $4648 from 37estimated statements.
2. Meter Reader Billing has a total meter increase of 15344and a total consumption charge of $1611 from 10 meter reader statements.
3. Customer Read Billing has a total meter increase of 12334 and a consumption charge of $1658 from 4 customer read statements.

Is there a way that to find out if the Estimated Bill works out to be more expensive on average than the other two types of bills? The consumption charges are the same for the three types of bills. Is it a simple case of just working out the average?

What do you mean by "more expensive"? If your friend supposing that, when her bill gets corrected to the "actual" amount (rather than the "estimated" amount), the electric company is lying about the actual meter reading (which she can go outside and confirm for herself)? Or is she saying that the rates for the months with "estimated" readings are higher (which would be reflected on the monthly statements)? Or something else?

Please be specific. Thank you!

 

[Moss2076]

She believes the Estimated readings are increasing more than they otherwise be if the estimated amounts are measured against the Actual or Customer readings. This is what I don't know how to prove, or not prove. The consumption charges per kilowatt hour are the same for all three types of reading, so it is the estimated increase which she thinks is too high.

If if there isn't a way to prove or disprove it then that is fair enough,I am hopeless at mathematics, hence the reason for this post

 

[Moss2076]

The rates are the same for all three types of bills, but she thinks the increase from Estimated bills is more than on the actual and customer read bills. Basically she thinks the company are lying when estimating her bills and she thinks the increase is higher when estimated. The problem is she is blind so she is unable to read the meter which is why there is only 4 customer readings and the vast majority are estimated. Hope that makes more sense!

 

[stapel]

The rates are the same for all three types of bills, but she thinks the increase from Estimated bills is more than on the actual and customer read bills. Basically she thinks the company are lying when estimating her bills and she thinks the increase is higher when estimated.

The problem with estimation is that it is an inexact process. By its very nature, there will be differences. If your friend happens to be the person on her block using the least electricity (which is quite possible, since she doesn't need as much lighting), then the company's estimates, based on what is normative in that area, will naturally be higher than the actual. But then the bills resulting from actual readings will correct the error.

It sounds as though your friend's usage doesn't fit the model that the utility company is using. Maybe she should ask about "budget billing", so that her bills are more consistent throughout the year, rather that veering from high (over-)estimated to low (corrected) actual readings.

 

[stapel]

The problem with estimation is that it is an inexact process. By its very nature, there will be differences. If your friend happens to be the person on her block using the least electricity (which is quite possible, since she doesn't need as much lighting), then the company's estimates, based on what is normative in that area, will naturally be higher than the actual. But then the bills resulting from actual readings will correct the error.

It sounds as though your friend's usage doesn't fit the expected- (or "typical") usage formula that the utility company is using. Maybe she should ask about "budget billing", so that her bills are more consistent throughout the year, rather that veering from high (over-)estimated to low (corrected) actual readings.

But unless the utility is charging her different rates, depending upon the reading type, I don't think there's anything hinky going on. It's just that her usage doesn't fit their predictive model, so the errors on her estimates are bigger than expected.