Water utility billing error results in 12 per cent revenue shortfall

Some accounts not billed for consumption over 100,000 gallons, recovery process imminent

While reviewing the year-end financial statements, the District of 100 Mile House administration noticed an issue with the water utility revenue.

There was a variance between annual projected revenue and actual amounts invoiced – they were off by about 12 per cent.

After a detailed analysis, it was confirmed that 28 of 800 quarterly billings had been under billed for the 2013 fiscal year.

Forty per cent of the unbilled volume is attributed to two high-end consumers.

The analysis determined an error was made when administration created a new master file to set up the 2013 utility billing system.

When typing in the “over 30,000 gallons” rate, a parameter of 30,000 to 99,999.99 was input instead of 30,000 to 9,999,999.

This resulted in a system failure to invoice customers for volumes consumed in excess of 100,000 gallons; thus creating a revenue shortfall at year end.

As a corrective measure, the District is notifying all of the affected customers about the error and informing them of the process to recover the revenue for the unbilled volumes.

In most instances, recovery will be billed equally over the four quarterly billing cycles in 2014.

“The District will do its best to alleviate the impact and work with clients to implement a recovery plan with those most adversely affected,” says Councillor Ralph Fossum.

“We apologiize to the affected residents, and remain dedicated to rectifying this situation.” .

 

100 Mile House Free Press