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Programs That Help Customers Get Back On Track
Sarah FiebigerSenior Analyst, Market Research Services
July 21, 2011Thursday, July 21, 2011
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Problem with programs just designed to get customers out of arrears…
Fixed income
Can’t afford bills
Arrears add up
1-time $ Assistance
Disconnect Avoided
Cycle ofDelinquency
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Problem with programs just designed to keep customers out of arrears…
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Problem with programs just designed to keep customers out of arrears…
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Problem with programs just designed to keep customers out of arrears…
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But we can break the cycle!
Fixed income
Can’t afford bills
Arrears add up
1-time $ Assistance
Disconnect Avoided
Cycle ofDelinquency
Can’t afford bills
Arrears add up
Comprehensive,Longer-term
Programs
Better-paying customer
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Design programs that attack BOTH the symptom AND the cause
Get Them Out
Reduce or
Eliminate arrears
(symptom)
Keep Them Out
Make bills
easier to afford
(cause)
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Get Them Out! One time cash assistance available
through programs like LIHEAP Arrears forgiveness Matching payment plan Extended payment plan Arrears pay down
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Keep Them Out! Budget billing Percentage of income payment plan Prepaid metering
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À La Carte program design
Get Them Out
One time cash assistance (ex: LIHEAP)
Arrears forgiveness Matching payment plan Extended payment plan Arrears pay down
Keep Them Out
Budget billing Percentage of income
payment plan Prepaid metering
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À La Carte program design
Get Them Out
One time cash assistance (ex: LIHEAP)
Arrears forgiveness Matching payment plan Extended payment plan Arrears pay down
Keep Them Out
Budget billing Percentage of income
payment plan Prepaid metering
www.esource.com || © 2011 E Source15
À La Carte program design
Get Them Out
One time cash assistance (ex: LIHEAP)
Arrears forgiveness Matching payment plan Extended payment plan Arrears pay down
Keep Them Out
Budget billing Percentage of income
payment plan Prepaid metering
www.esource.com || © 2011 E Source16
À La Carte program design
Get Them Out
One time cash assistance (ex: LIHEAP)
Arrears forgiveness Matching payment plan Extended payment plan Arrears pay down
Keep Them Out
Budget billing Percentage of income
payment plan Prepaid metering
www.esource.com || © 2011 E Source17
Take it one step further…
Tack on a layer of customer support and education!
Provide using your employees Partner with a non-profit group Direct customers to call United Way 2-1-1
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The Solution!
Component 1(Get Them Out)
Component 2(Keep Them Out)
Customer Support & Education
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Can also include an added bonus…
Component 1(Get Them Out)
Component 2(Keep Them Out)
Customer Support & Education
Weatherization
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Allegheny Power Low-Income Payment and Usage Reduction Program (LIPURP)
Affordable monthly payments Supplemental grants for on-time payments 2% arrears forgiveness for on-time payments Referrals for additional assistance
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Allegheny Power LIPURP: Results
Customers increased amount of cash payments by an average of $40 in year following enrollment
Customers increased average number of payments made per year from 8.6 prior to enrollment to 9.4 after enrollment
Customers have seen an average net decline in their energy burden of 3 percentage points
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Illinois Percentage of Income Payment Plan (PIPP) Monthly payments equal to 10% of income Minimum payments of $10 per month One-time arrearage forgiveness benefit or LIHEAP
benefit
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Illinois PIPP: Results
Customers saw reduced energy burdens Customers maintained or increased their number of
payments made (some elderly and child customers did see reductions in payments made)
Customers say their bills are easier to pay and their level of energy insecurity improved
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Salt River Project M-Power
Prepaid metering program Percentage of each payment goes towards paying
down arrears Reduced security deposit cost
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Salt River Project M-Power: Results
12% reduction in energy use Very high customer satisfaction Customers can pay in small amounts as they want Arrears get paid down until they’re gone
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To recap…
Get Them Out AND Keep Them Out By tackling both the symptom and the cause using comprehensive programs that: Provide a means for reducing or
eliminating arrears Provide means for keeping energy bill
costs down Provide customer support and education
on budgeting and finance skills
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For More Information
Sarah Fiebiger
Senior Analyst, Market Research Services
303-345-9126 [email protected]
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