Usage Estimation

Overview

During the billing process, there are situations where actual meter readings are not available for all customers.

This can happen for various reasons:

• Meter reading was not submitted.
• Field staff could not access the property.
• Smart meter communication failed.
• Data upload was incomplete.
• A reading was missed during the billing cycle.

Without a current meter reading, the system cannot accurately calculate consumption, which prevents billing from proceeding.

The Estimate Missing Meter Readings process automatically fills these gaps by using historical consumption data and predefined estimation rules configured for each metered service parameter.

This ensures that billing can continue even when actual readings are unavailable.

Why Estimation Is Needed

For metered services, bill calculations depend on consumption.

Consumption is typically calculated as:

Consumption = Current Reading - Previous Reading

If the current reading is missing, consumption cannot be calculated.

Example:

Previous Reading	Current Reading
12,500	Missing

Since the current reading is unavailable, the system estimates usage using historical billing information and generates an estimated reading.

How Estimation Works

The estimation process identifies customers who are missing current readings and calculates estimated usage based on previous billing history.

The system then:

1. Calculates estimated consumption units.
2. Derives an estimated current reading.
3. Marks the reading as estimated.
4. Makes the record available for bill processing.

Example

Suppose a customer has the following history:

Month	Usage
January	450 Units
February	500 Units
March	550 Units
April	Missing

The system can use historical usage patterns to estimate April’s consumption.

For example:

Estimated Usage = Average of Historical Usage

(450 + 500 + 550) ÷ 3

= 500 Units

The estimated usage is then used to calculate an estimated current reading.

What Gets Updated?

When estimation is performed, the billing system updates:

Estimated Consumption

The calculated usage units for the billing period.

Example:

Usage
500 Units

Estimated Current Reading

A new current reading is derived from:

Previous Reading + Estimated Usage

Example:

Previous Reading	Estimated Usage	Estimated Reading
12,500	500	13,000

Estimation Flag

The system marks the reading as estimated rather than actual.

This provides visibility during audits and billing reviews.

Supported Estimation Methods

Each metered service parameter can be configured with a specific estimation method.

Examples of metered parameters include:

• KWH
• M3 Gas
• Water Consumption
• Utility Usage

The estimation method is configured when the service or Pricing Context is created.

Estimation Method 1: Average of Last Year

The system calculates the average consumption from the previous calendar year.

Example

Month	Usage
Jan	450
Feb	500
Mar	550
…	…
Dec	600

Average:

Total Usage ÷ 12

The calculated average becomes the estimated consumption.

Best For

Customers with relatively stable consumption patterns.

Estimation Method 2: Same Month Last Year

The system uses consumption from the same month in the previous year.

Example

Current Billing Period:

January 2025

Historical Reference:

January 2024

Month	Usage
January 2024	700 Units

Estimated Usage:

700 Units

Best For

Seasonal services where consumption varies throughout the year.

Examples:

• Electricity
• Gas
• Water

Estimation Method 3: Greater of Average and Same Month

The system calculates:

• Average of Last Year
• Same Month Last Year

It then selects whichever value is greater.

Example

Calculation	Result
Average Last Year	450 Units
Same Month Last Year	600 Units

Estimated Usage:

600 Units

Best For

Conservative billing approaches where underestimation should be avoided.

Estimation Method 4: Maximum Usage of Last Year

The system uses the highest recorded consumption from the previous calendar year.

Example

Month	Usage
January	450
February	500
July	900
December	650

Maximum Usage:

900 Units

Estimated Usage:

900 Units

Best For

Organizations that prefer high-confidence recovery of potential revenue.

Estimation Method 5: Minimum Usage of Last Year

The system uses the lowest recorded consumption from the previous calendar year.

Example

Month	Usage
January	450
February	500
March	320
April	600

Minimum Usage:

320 Units

Estimated Usage:

320 Units

Best For

Conservative customer-friendly estimation strategies.

Example Billing Scenario

Consider the following customer:

Meter Information

Item	Value
Previous Reading	15,000
Current Reading	Missing
Estimation Method	Average of Last Year

Historical Usage

Month	Usage
Jan	500
Feb	550
Mar	450
Apr	500

Average Usage:

500 Units

The system calculates:

Item	Value
Estimated Usage	500
Estimated Reading	15,500
Estimated Flag	Yes

Billing can now proceed normally.

How to Estimate All:\

1-Go to BillSpree →Bill Runs →Term

2-Select Pricing Context of Term:

3-Click on Batch Action and Select Estimate All.

Summary

Estimate Missing Meter Readings automatically fills gaps in meter data using historical consumption patterns, ensuring that billing can continue even when actual readings are unavailable.