Utility Week

40 | JULY 2021 | UTILITY WEEK continued from previous page Utility Week Live Summit special report Utility Week Live Summit How would you like to pay for this? Just as customers can choose how they communicate with you, so increasingly they can choose how to pay. |A Utility Week Live Summit roundtable explored the latest innovations in payments methods. T he vulnerability and debt area were low down on people's radar, and all of a sudden, at exec level, they're at the forefront. It's been much easier to get ini- tiatives through, because people are worried about the impact [of the pandemic]. Usually you're kept in a cupboard somewhere and not allowed out. Now, you're front of house." The observation, shared at a virtual roundtable discussion on innovations in payment held at Utility Week Live Summit and in association with Mastercard, reflects the experience billings, debt and collec- tions departments have had through the pandemic. On the one hand there is the growing number of customers falling behind with their payments – 600,000 new customers by Christmas alone, according to Citizens Advice – and the fear that many more could follow as government support schemes come to an end. On the other hand, "innovations are available", as another delegate said – and as collections departments benefit from heightened board-level attention and resource, there is an opportunity for a digital revolution bringing multiple benefits for cus- tomers and the business alike. First, let's look back a little. As the scale of the coronavirus crisis became clear in March 2020, customer and collections leaders were immediately concerned at the impact it could have on bad debt, payments and, in particu- lar, vulnerable customers. Some of these fears have already come to pass – roundtable delegates spoke of an increase in requests for payment plans and Direct Debit cancel- lations, for example, as well as people mak- ing use of government-mandated schemes that allowed them to keep their Direct Debits artificially low. But the full extent expected of the crisis has not yet materialised – and the jury is out as to whether this is because it has been delayed by furlough and other state support schemes, or simply because it's not as bad as feared. Yet the wider impacts on billing and col- lections are already being felt. Several of our delegates spoke of an increased business focus on their departments, and willingness to invest in new technologies. One leader from a major energy retailer had used it as an opportunity to completely reinvent how the department did business, working much more closely with technology and delivery specialists in an agile environment to collect deeper data on customers' payment habits and attitudes. He spoke of increased business support for debt and collections, including addi- tional resourcing, in an attempt to be ready for increased bad debt; operational improve- munity hubs in certain areas to offer advice to their customers. While this has not been possible due to social distancing measures, it was seen as a valuable asset before the pandemic. They said: "We open community hubs as well, where we have got shops, bricks and mortar places, where customers can go in. Not to make a profit, but just to be there for the community and answer questions about their energy. Enable those people to engage with us, teach them about the digital jour- ney, but also its in areas where we have more vulnerable customers. They can come in, speak to someone and be reassured." While, perhaps understandably, the emphasis during the debate was on commu- nications solutions, one delegate suggested the real answer is for issues to be dealt with before they become a problem. "Perhaps the actual thing that we should be looking at is making sure those issues don't exist and finding a way to stop them," they said. Throughout the past year coronavirus has meant that businesses the world over have been forced to rapidly adopt new ways of working and the UK utilities sector is no exception. Almost overnight, the sector ral- lied to protect its most vulnerable consumers and this led to an increase in digital commu- nications channels. While the pace of change has been rapid, it's clear from the discussions at Utility Week Live Summit that the sector must understand the varying needs of its customers and use the full range of tools at its disposal to offer mean- ingful consumer engagement. New channels are necessary and welcome, but the sector must not disregard the old ways entirely. Adam John, senior reporter "There's a really important opportunity for us as organisations to press pause and to really reflect on what has gone well." Jo Causon, chief executive, the Institute of Customer Service "

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