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AMI a significant weapon in utility credit and collections arsenal, but promised benefits far from reality, Chartwell says
AMI a significant weapon in utility credit and collections arsenal, but promised benefits far from reality, Chartwell says
ATLANTA – Feb. 22, 2008 – Chartwell’s long-awaited report on credit and collections in the utility industry reveals much interest around advanced metering and the benefits the technology can bring for utilities in cutting costs associated with service disconnections and energy theft. But with few utilities having true advanced metering infrastructure (AMI) in place, the industry has yet to realize the real impact this technology can have on the collections process, Chartwell finds.
For example, Chartwell’s researchers found that, while there are successful case study examples, less than one-third of utilities with some level of AMI or less-sophisticated automated metering had used the technology for theft detection. Significantly fewer had used it for remote disconnection, a feature that enables utilities to shut off service for non-payment without physically sending a technician to the customer premises.
The results of survey questions about AMI/AMR usage as well as other revenue assurance processes and practices are reported in the just-released Chartwell’s Report on Credit & Collections in the Utility Industry 2008, 3rd Edition.
Overall, Chartwell found that utilities have made great strides in the effort to reduce bad debt costs and encourage customer payment. A majority of utilities now look to outside credit reporting bureaus to view customers’ credit history, and some use outside and proprietary customer scoring methodology to predict customer behaviors and better target the truly at-risk customers with their collection efforts.
On the AMI front, Chartwell predicts more utilities will realize the promised benefits in operational efficiency as they implement more sophisticated AMI technologies and data management tools, which, according to Chartwell’s research, will occur at a substantial rate in the coming years.
Chartwell’s Report on Credit & Collections in the Utility Industry 2008, 3rd Edition assesses study participants’ risk management efforts, disconnection policies, customer communication strategies, and technologies in place. It is available to Chartwell Premier and Customer Care Series members as part of their membership; non members may purchase the report for $795.
For information on membership, contact Kristy Dickens at (800) 432-5879, (404) 237-9099 or kdickens@chartwellinc.com, or visit www.chartwellinc.com or Chartwell’s Energy Library at www.energylibrary.com.
ABOUT CHARTWELL INC.
Chartwell Inc. is a specialized information provider that facilitates knowledge exchange among utility professionals. Chartwell publishes best practices case studies, quantitative and qualitative research and electronic newsletters, and hosts conferences and other events.
Press Contact:
Dennis Smith
Vice President
Chartwell Inc.
(404) 237-9099, Ext. 31
