Distributed Usage Explained

What is distributed usage?

Distributed Gas is the share of gas each apartment is billed for other purposes, usually water-heating or gas cooking.

Why Charge Distributed Usage?

Apartment renters normally pay a lump sum, as part of rent, that covers a wide array of services including: refuse removal, snow removal, incidental repairs etc. Until our system was implemented, gas and water/sewer was also in this lump sum, often causing a raising of rent annually.

Invoice America Distributed Billing Usage does not represent a change in who pays for the utilities, but a change in how it is paid. Predetermined usage costs included for heat-paid rents, which are inflated for worst-case weather becomes a thing of the past. With Invoice America, renters are billed individually for monitored meter consumption within their unit AND residual overall consumption. Renters will receive a monthly bill prepared by Invoice America for a combined individual and overall pro-rated distributed consumption, and properties have the option to collect themselves, or have Invoice America handle collections.

How is distributed Usage Calculated?

Distributed Usage predominately consists of utilities used for water-heating and cooking, and may include other factors, including energy for pilot lights and fireplace igniters. After the monthly meter reading from the utility company, Invoice America calculates each tenant’s bills based on the overall charges.

The overall utility company measured consumption in each building is compared to the total of all monitored meter points. The difference between total utility bill consumption and our metered consumption is the distributed usage. Each apartment is then charged a fixed percentage of the remaining utility costs for the distributed usage. This percentage is based on a combination of square footage of the apartment, or in some cases, occupancy. The combination of these two portions makes up the utility bill.

Why a fixed percentage?

Since there is no practical way to measure actual consumption of Distributed Usage, rather than picking a pre-determined lump sum, it’s more fair and costs less to base it off actual utility consumption. By doing this, each renter is able to pay a percentage of the actual usage to their building. This allows tenants to see results when they make efforts to conserve utilities.

For more information on distributed usage and implementing it in your apartment, please fill out our contact us form.

By | 2019-06-13T15:16:22+00:00 March 9th, 2018|Commercial|0 Comments