Programs That Help Customers Get Back on Track

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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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What’s the problem?

ARREARS!


What’s the solution?

Get Them Out


What’s the solution?

Get Them Out

Keep Them Out


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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But we can break the cycle!

Fixed income


Arrears add up

1-time $ Assistance

Disconnect Avoided

Cycle ofDelinquency


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)


Get Them Out! One time cash assistance available

through programs like LIHEAP Arrears forgiveness Matching payment plan Extended payment plan Arrears pay down


Keep Them Out! Budget billing Percentage of income payment plan Prepaid metering


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



Get Them Out



Keep Them Out





Get Them Out



Keep Them Out





Get Them Out



Keep Them Out




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


The Solution!

Component 1(Get Them Out)

Component 2(Keep Them Out)

Customer Support & Education


Can also include an added bonus…

Component 1(Get Them Out)

Component 2(Keep Them Out)

Customer Support & Education

Weatherization


Result: Win-Win!


Want proof this model is successful?


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


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


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


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


Salt River Project M-Power

Prepaid metering program Percentage of each payment goes towards paying

down arrears Reduced security deposit cost


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


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


For More Information

Sarah Fiebiger

Senior Analyst, Market Research Services

303-345-9126 [email protected]

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