In the past decade, more utilities have been taking a proactive approach to utility collections and customer notification, utilizing credit report agencies to assess risks and implementing remote disconnection procedures.  In interviews conducted by Chartwell recently, utilities are redoubling their efforts to streamline these practices due to the effects of the recession.

More than 50 percent of utilities interviewed stated they are changing their credit and risk mitigation assessments, with 12 of 23 interviewees changing or intensifying customer notification and utility collections processes.  

In addition to assessing payment and credit histories of customers, utilities are placing a higher priority on security deposits, with more companies requiring security deposits.  This is not new to the industry, but has taken a greater precedence in light of the current recession.

Respondents to the survey reported changes they were making directly because of the current economy, and some of the successful changes they reported include:

• Utilizing automated outbound calling of customers with past due amounts 
• Being more willing to work with customers and set up payment arrangements
• Beginning programs to utilize credit reporting agencies to identify risk and verify identity
• Becoming increasingly diligent in collecting and assessing security deposits
• Coordinating outreach for customers who qualify for energy assistance programs
• Reviewing eligibility for security deposit refund and holding deposits if credit ratings warrant
• Implementing prepayment options for commercial customers instead of security deposits
• Creating internal rating systems to move customers through collections more quickly if their rating warrants

One of the more commonly reported changes was utilizing the power of automation to contact past due customers sooner.  This change was successful for many respondents to the interview.

TFCC's automated collections solution can provide the leverage your utility needs to increase collections revenues and help customers catch up on their payments.  To find out more, view the presentation, Collect More When You Connect More.