Saving money on your manufacturing facility’s utility bill isn’t just about increasing energy efficiency or even negotiating lower utility rates. Sometimes, you can find considerable savings by assessing and updating the physical equipment that measures your electricity, gas, and water. This was the case with one of our recent clients.
Shampoo Manufacturing Company: A Case Study
Not long ago, we got a call from a shampoo manufacturing company regarding its high water bill. The company had moved its manufacturing to a different building and moved its distribution and warehouse into the former manufacturing plant. The meter for the manufacturing building was large enough to accommodate water-intensive shampoo manufacturing. But now that the building was used for dry storage and distribution, the meter was much too large. The company was paying more than $600 a month in unnecessary meter fees.
The experts at SM Engineering quickly uncovered the oversight and helped get the meter resized. Though this required a small investment in new equipment, these initial costs were recovered in just three months. Now, the company saves more than $600 a month on its water bill.
Meter Size Matters
Our shampoo manufacturing client’s experience isn’t unique. We frequently find meter size discrepancies at our clients’ facilities. Investing in meter updates can save you hundreds—or thousands—a year on your utility bills if you are charged based on meter size, a common way utilities calculate water bills.
If your water bill is based on a meter charge, sometimes called a basic charge, the size of your water meter is what determines the amount you pay. A meter charge does not take into account the actual amount of water you use. Instead, it charges you a flat fee based on the capacity of the meter. That’s why it’s important to regularly audit your water use and make sure your meter is not too large for your needs.
If you’ve recently moved into a new facility or reconfigured how you use your existing facility, it pays to look into the size of your water meter. Updating your meter may save you hundreds a month in utility fees. To learn if you’re paying too much for water, contact the experts at SM Engineering today.
