Energy Business Daily

Today’s customers expect more. Utility companies are under increasing pressure to offer new and innovative payment options and implement advanced billing systems to grow revenue and retain customers.

Energy Business Reports (EBR) studied and analyzed leading US utility companies’ web sites to determine what bill payment options are rising in popularity. This report offers an up-to-date perspective of how utilities are developing and marketing electronic bill payment and processing systems for greater efficiency and customer convenience.

Meeting customers’ rising expectations: Customers have come to expect a variety of bill payment options, and utilities are continually striving to upgrade their bill payment offerings in order to remain competitive and provide customer service.

Most utility executives agree that making several bill payment options available has become a requirement to meet the needs of diverse customer groups. For example, users who are net-savvy like having the option of paying through the Internet, using e-bill capability; senior citizens often desire flexibility in due dates and third-party billing notification, in which a duplicate bill is sent to an adult child or guardian who makes sure it is paid on time; low-income customers may take advantage of budget billing options; dual-income households may prefer to pay by phone or using a debit option. As customers’ expectations have increased, alternative options for bill payment have become the norm in the utility industry.

Alternative payment options hold appeal for many customers, but the EBR study revealed some surprising results. About 65% of utility customers still pay their energy bills the old-fashioned way - by mailing their payments to the utility. Among the remaining 35% of customers, the preferred payment methods include walk-in, drive-through, bank drafts or auto pay, e-billing, and direct debit, according to the utility companies surveyed.

The growth of E-billing: Electronic billing (online of E-billing) is gaining ground and will soon be one of the most popular methods of paying bills. Already in industries such as telecom, online bill payment is the norm, and the utility industry is not far behind. Among the utilities studied, nearly 50% have already posted the option of paying through their websites.
By 2010, approximately 47 million US households will pay bills online, a 75% increase from year-end 2004. Much of the growth will be fueled by today's tech-savvy young consumers who grew up with computer mice in their hands.

ATM's are also popular, as they can now be used for paying bills just as effectively as telephones or Internet sites and have the advantage of reducing the fraud risks involved with check payments.

The report analyzes the benefits of various bill payment options for both companies and customers, and offers insights into the future of utility bill payment trends. It also details several case studies that evaluate, compare and contrast the success of various payment methods at several energy utility companies.

About the Publisher: "Bill Payment Options for Utilities" is published by Energy Business Reports (www.energybusinessreports.com), an energy industry think tank and leading source for energy industry information and research products. Other reports available from EBR include: Weather Risk Management, Natural Gas Storage Effects on Energy Trading, Fuel Cell Technology, Customer Satisfaction in the Utility Industry, The Outlook for Unconventional Gas, Securing Energy Assets and Infrastructure, The Market for Solar Photovoltaics, The Market for Cellulose Ethanol, and Understanding the China Energy Market. These reports can be ordered at http://www.energybusinessreports.com/shop/item.asp?itemid=1040

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