Introduction
In the UK, gas and electricity bills are often at the bottom of the pile approximately ?600million per year is not paid on time. In a MORI survey, 4% of respondents admitted delaying payment of gas or electricity bills approximately ?600million per year not paid on time. Only water bills and council tax are postponed by more people.
Scope of this report
- Analysis of the importance of utility bills to consumers in relation to other bills.
- Metrics that utilities need to measure and success strategies for reducing bad debt.
- Case study on Exelon, which reduced bad debt by introducing a credit scoring system.
Research and analysis highlights
"In the UK, gas and electricity bills are often at the bottom of the pile approximately ?600million per year is not paid on time. In a MORI survey, 4% of respondents admitted delaying payment of gas or electricity bills approximately ?600million per year not paid on time. Only water bills and council tax are postponed by more people."
"According to Datamonitor's Cost-to-Serve model, the six major suppliers to the residential sector spend on average ?2.5million chasing late payment (including the cost of debt write-offs). 90% of the costs are attributed to the payment centre, approximately half in labour costs and half in maintenance costs."
Key reasons to read this report
- Understand the attitude of consumers to utility bills that constrains efforts to reduce bad debt.
- Learn the metrics and success strategies that utilities need to measure and pursue in order to reduce bad debt.
In the UK, gas and electricity bills are often at the bottom of the pile approximately ?600million per year is not paid on time. In a MORI survey, 4% of respondents admitted delaying payment of gas or electricity bills approximately ?600million per year not paid on time.