ATLANTA - The amount has risen to more than $1.6 billion in revenue uncollected from electricity and natural gas sales, the percentage of write-offs to overall revenues for electric and gas utilities is estimated at more than 0.5%, higher than traditional levels, and charge offs increased for most utilities in the past two years. But utilities continue to seek innovative ways to minimize these losses and identify at-risk customers earlier in the customer life cycle, research firm Chartwell Inc. reports in its all-new Credit and Collections in the Utility Industry 2004. And these efforts are apparently beginning to work.
This just-released 160-page research report offers an in-depth analysis of the industry based on 26 exclusive interviews with utilities that participated in the study, an overview of the credit and collections processes and procedures at those participating companies, and profiles of many of the leading vendors serving the industry with solutions aimed at improving credit and collections.
Credit and collections processes have taken on new importance for forward-thinking utilities in recent months. In an age when utilities are more efficient and think competitively despite the setbacks with deregulation, the need to improve customer service while at the same time cut costs is the challenge.
This includes improving collections, from implementing credit scoring programs on the front-end to harnessing outbound communications technologies and outsourcing options to boost collections on the back. And study participants that have taken action reported their level of write-offs is trending downward for 2003.
Credit and Collections in the Utility Industry 2004 features three sections:
• Industry analysis — details Chartwell’s findings, including issues that are top of mind among utility professionals and the programs utilities are putting in place to fight bad debt.
• Case studies — 26 case studies provide an apples-to-apples comparison of electric and gas utilities interviewed for this report. Utilities that participated are of different sizes, from large, investor-owned corporations providing electric and gas services to mid-sized municipal providers of electricity and water to member-owned cooperatives.
• Vendor listing — descriptions of vendors provides insight into the organizations utilities can turn to for assistance with their internal and external collections needs.
Credit and Collections in the Utility Industry 2004 is available now for $895. For information, call 404.237.9099. Press contact: Dennis Smith.
