Bring order to debt

Customer Debt

Bring order to your customer debt book to increase profit

When typical bad debt charges faced by energy suppliers are greater than the profit allowed by OFGEM under the energy price cap, significant focus is needed to prevent customers from getting into debt, and to support them with repaying any arrears.

 

Many of the recent changes made by OFGEM align with best practices BFY has established over many years working with clients:

 

  • Ensuring repayment levels are correct from the point of customer take on

  • Ensuring accurate account balances through meter reading and billing

  • Having appropriate credit management policies

  • Making proactive contact with customers

  • Setting repayment rates based on an individual’s ability to pay

 

At the heart of every BFY debt programme are three core components:

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If you are looking for help with any of the following, please get in contact with Ian Barker or Rachel Littlewood:

 

  • Debt Diagnostic

  • Risk Modelling and Bad Debt Charge forecasting

  • Customer segmentation

  • Direct Debit adequacy

  • Managing your non-payers

  • Debt book reduction

  • DCA Panel Management

  • Litigation

  • Debt sale

BFY helped us to rapidly reduce the size of customer debt and enabled us to keep it permanently lower

Agent productivity

BFY engaged to improve Big 6 collection agent productivity to reduce debt

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Partnered with the client over a six-months period. Implemented lasting change and nearly doubled cash collected by each team member, for a client benefit of £3.5m per year.

New debt processes

BFY engaged by Big 6 brand supplying UK business energy market to update bad-debt processes

 

BFY helped client achieve debt reduction of more than £15 million. Thanks to new processes, 35,000 customers were classed as ‘rehabilitated’, paying their bills on time each month.

Improve gross margin

BFY engaged to identify initiatives to close the client’s adverse financial position

 

BFY identified five initiatives for the business to pursue, with potential benefits of between £9m to £15m in-year, as well as £5m to £10m recurring benefits. 

Transform debt journey

BFY engaged by fast growing challenger to improver debt collection efficiency

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Delivered debt collection benefits of £10m by transforming the supplier's debt collection journeys.

Rachel Littlewood
Principal
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Ian Barker
Managing Partner
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For more information, please contact:
For more information, please contact:
Ian Barker
Managing Partner
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Rachel Littlewood
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Senior Manager Financial Optimisation
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