The challenge
Central Hudson faced collection constraints for nearly five years following the COVID-19 moratorium. As a result, arrears grew from $30 million to $185 million, impacting over a third of its customers.
At the same time, the utility launched a new SAP billing system, but postponed collections functionality to focus on monthly meter reads and billing accuracy. System limitations, high call volumes, and longer call durations delayed recovery efforts and made it difficult for the customer service team to keep up with inquiries.
The solution
Central Hudson partnered with E Source to implement a multi-phase strategy focused on improving collections and customer engagement.
Key phases:
- Arrears collection strategy and roadmap: Assessed the current state and recommended actions to improve collections.
- Remediation and optimization: Conducted manual outreach, optimized collection efforts, and ensured SAP data accuracy.
- SAP improvements: Aligned SAP processes, automated credit processing, and improved contact center and field operations.
- Credit risk transformation: Developed targeted outreach strategies, introduced personalized servicing, and applied process improvements and automation.
The results
Since implementing the arrears collection strategy, Central Hudson has seen significant improvements, including:
- The number of customers current on their bills doubled
- 30% reduction in arrears within the first five months
- 25% decrease in the number of accounts in arrears
- 85% of new bills paid within 90 days
Central Hudson continues to work with E Source to refine customer communication and develop bill credit programs to support low-income customers.