Good practices

Pidpa (Belgium) has set 9 main principles for its collection process in order to reduce bridge the gap between billed and collected. All principles are there for the same goal: make customers pay, but consider the fact that they will remain customers after all. Guide the customer to find a solution so that he can continue paying his water bills in the long term. Organising the collection process is one thing, managing it is another. Pidpa manages its processes through the Balanced Scorecard where performance measurements are registered, followed, discussed and acted upon.

Consumption has been declining for years now, since customers become aware of the total cost of water and take action to minimize consumption of drinking water. The other factor is the price Pidpa charges per m³. Prices for drinking water are regulated and Pidpa has little impact on prices for wastewater. In the end, impact on revenues generated from water bills is limited. Then how to maximize revenues? By collecting as much as possible of what has been billed!

The overall economic situation created a customer base with a rising number of bad payers, bankruptcies, debt settlements and in some cases even fraud, theft and illegal consumption. All this while regulation becomes stricter: mandatory dunning steps are formulated, customers rights regarding access to drinking water are protected, social price reductions are installed.

The nine main principle that Pidpa has put in place are:

1. Low threshold for customers: Pidpa operates a free of charge phone number for all customers and allows free of charge payment plans.
2. Well organised and (whenever possible) strongly automated process: strict timing for each step in the collection process and each next step (incl. expected cost) is communicated to the customer in advance.
3. First reminder free of charge when “first time late”.
4. No solidarity: customers pay for their own collection costs.
5. Strict procedures are followed (LAC = local advisory commission) before suspending water supply at residential customers.
6. House visits by Pidpa employees before LAC (personal approach): target = agreement on (partial) payment + avoiding suspension of water supply.
7. Aiming at ‘partnership’ with social welfare: win-win-win situation.
8. Outsourced specific steps in the dunning process: when ‘pressure’ from external party is needed, for time-intensive actions (call actions - visits), within a clear time frame (3 months).
9. All available external channels are in place: collection agency, bailiff, and lawyer (each partner has its strong points).

Pidpa will further adapt its collection process to upcoming evolutions. Regulation will become even stronger and procedures for suspension of residential water supply will
become stricter. Pidpa plans on optimizing the current collection process for professional customers and further outsourcing of dunning steps will be considered.