Energy and Water retailers across the UK are severely impacted when customers intentionally or unintentionally don’t notify them when they move out or into premises. Promptly identifying when tenants move out and into properties is extremely important with regards to billing and collection of debt.
A ‘void’ can be defined as a property, which does not have a legitimate tenant. There are many reasons why voids occur. Sometimes a property may be awaiting a new tenant; or a previous tenant may have given notice and vacated the property.
There are two key areas of pain for energy and water utilities, in relation to vacant/void properties, namely Unbilled and Uncollected Revenue. Unbilled Revenue results from new tenants not being identified quickly or indeed, at all. In the Water Industry alone the cost is estimated to be £300m per annum. Uncollected Revenue is ultimately recognised by utility companies in the form of bad debt write-offs and increasing bad debt provisions. The estimated cost of bad debt write-offs and increased provisions is estimated to be around £1bn p.a. across the energy and water sectors, albeit only a proportion of the £1bn will be related to the management of void/vacant properties, however, it will be a significant proportion.
Collection and Billing Costs will also be driven higher by the challenges associated with changes in tenancy by both residential and business customers.
Together with DScience, we are developing a solution that will improve the accuracy of the data quality required to issue bills and increase the speed at which that improved data is provided. Artificial intelligence will be used to predict the probability of premises becoming vacant or occupied which will provide retailers with early warning indicators of the potential for fraudulent activity and allow proactive preventive action to be taken.
We would be delighted to speak with you and share an insight into why our proposition works, and answer any questions you may have.