Revenue Leakage In Utilities

As that trusted advisor utilities are well positioned to be the preferred provider of new products and services leading to new revenue and earnings opportunities as well as continued relevance in a rapidly changing market.

Revenue leakage in utilities. Revenue leakage in utilities invoicing revenue collection accounts receivable billing reconciliation process automation rpa revenue assurance. For the revenue leakage services ey calls in a team of people who know their way around data can untangle contracts and can critically analyze processes. Faulty metering inadequate billing processes etc. Obviously that exposes a utility to revenue leakage for usage incurred between tenants.

However in many walks of life lethargy and fear of the unknown are significant barriers to action and the same applies to revenue leakage. These revenue assurance efforts have in the majority of cases helped to reduce revenue leakage to approximately 3. With a soft shutoff when a customer closes an account the utility service remains connected. Utilities have the opportunity to be a beacon in a crowded marketplace and strengthen customer loyalty.

Studies reveal that revenue leakage in utilities in developed countries accounts for 1 to 5 of their revenue whereas in some developing countries it can be as high as 20. While leaks can come from both the revenue and the expenditure side most commonly revenue leakage refers simply to not billing or under billing your customer for products and services provided. There are various business activities that can contribute to revenue leakage within utility companies. Revenue assurance revenue assurance is the methodology of increasing an organization s income by identifying areas where revenue gets lost and minimizing these losses by eliminating or fixing the source of the leaked revenue.

Utilities use soft shutoff practices as a customer convenience and as a way to reduce operational costs. Revenue leakage defined revenue leakage is the unnoticed or unintended loss of revenue from your company. Various areas of the utility s commercial activities may be contributing to loss of revenue apart from theft such as deficiencies in the internal commercial processes e g. Using a simple model a 1 billion revenue stream realizes 30m of leakage at 3.

Revenue losses in the industry are ranging from 1 to over 25 globally depending on the environment maturation and economic forces.