Cyclical Debt Assessments Overview 2016-17
- How companies collect revenue is one of their most important areas of service. They should collect revenue effectively; through good administration, keeping in contact with their customers and taking appropriate action when customers do not pay. However, we expect companies to be sensitive when customers are experiencing difficulty. Communication between the customer and company is essential for revenue collection to work well. It is better if the customer informs the company when experiencing financial difficulty as the company can then steer the customer to available help. Companies should at least make regular attempts to keep in touch with customers outside the normal billing process. Successful communication avoids customer debt accumulating to an unmanageable level that can deter the customer from making contact with the company. CCW’s debt management assessments consider this balance. Each year our staff and our Local Consumer Advocates from our committees in the English regions and Wales visit companies to review a sample of 25 domestic accounts in arrears. We assess:
- How effective companies are when collecting revenue and how flexible they are with customers experiencing difficulty;
- Whether companies have adhered to their Code of Practice on debt; and whether the company has followed Ofwat’s ‘Guidelines for dealing with households in debt’.
- Our assessments form an important but only a part of the work we do on affordability and debt. Other work we do includes:
- Our regional Chairs, Local Consumer Advocates (LCAs) and Policy and Consumer Relations teams discussing debt and affordability amongst other areas of business in regular liaison meetings with companies.
- Through our research, ensuring that for the five year price review, bills are acceptable to customers.
- Helping develop advice, awareness and access to assistance schemes for customers experiencing affordability issues.
- Working with companies on the development, implementation and enhancement of social tariffs and assistance schemes so they maximise the help to customers in need.
- Dealing with customer complaints against their water company about debt collection issues