Bring order to 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:
Risk Modelling and Bad Debt Charge forecasting
Direct Debit adequacy
Managing your non-payers
Debt book reduction
DCA Panel Management
Download BFY's COVID-19 and Retail Energy Customer Debt report
BFY helped us to rapidly reduce the size of customer debt and enabled us to keep it permanently lower
BFY engaged to improve Big 6 collection agent productivity to reduce debt
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
Delivered debt collection benefits of £10m by transforming the supplier's debt collection journeys.