Vertex Business Services commissioned industry analyst firm Sierra Energy Group for this educational look at proven debt management methodologies.
Overview
Utilities can greatly benefit from the debt management practices and experience of industries such as banking that have developed a more sophisticated skill set. Benefits can come from adoption of proven methodologies for managing accounts receivable and managing outsourced agency collections business processes, as well as from use of appropriate software for these processes. There is also benefit to using analytical tools to evaluate the process of collections and optimizing processes based on metrics collected.
Bruce Gay of Monticello Consulting Group is convinced that utilities generally don't do a great job in recovering debt and optimizing the process. "Utilities are behind other industries such as banking. Five years ago, they were 20 years behind. They have made up some ground so now they are only 10 to 15 years behind. I don't know of any utility that is leading edge in terms of credit and collections and recovery as compared to leading financial institutions, not even close."
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