The Analysis CSA


Water water, everywhere…


The water industry is facing up to new challenges, and external help may hold the key to success


Peter Wallwork Chief executive, the Credit Services Association info@csa-uk.com


Water charges are now on the rise. The environment is clearly changing. Collecting payments for water services is


becoming harder, and the way in which those payments are collected will be under even closer scrutiny.


A new report Capita recently published a white paper into the water industry that makes fascinating reading. It suggests that the industry is facing a transformational change, and must look to make a significant step from its current behaviour. So how does it propose that collections can


become a positive force for good, rather than just another regulatory burden? On the one hand, it proposes retaining


collections in-house, and creating an integrated, end-to-end customer journey. It argues that, by bringing greater clarity


to the customer journey, it can prevent a debt from occurring in the first place. Reducing the likelihood of debt, it suggests,


by capitalising on early engagement and having a better understanding of customer behaviour, will lead to much higher rates of customer satisfaction and much lower rates of customer complaint. Few would argue with that logic. On the other hand, it explores the role of outsourcing collections


With the water industry being opened up to even greater competition, and demands for their services on the increase, business- process outsourcing may well hold the key


First and foremost, they are experts in


their field, for whom ‘collections’ is their core activity and principal strength. They are aware of new and emerging best


practice, and how these can be adopted. They have access to innovation and


technology as part of their ‘business as usual’ working practices, and compliance expertise that ensures they are across every regulatory regime to meet existing and anticipated future regulation. They also have the ability to ‘flex’ and


scale their operations to match the demand of their clients. How water-industry debt will be collected


in the future will undoubtedly change: in keeping with other sectors, and an ever- changing consumer, collections teams (whether in-house or outsourced) will increasingly have to harness new, digital communications techniques, and provide consumers with a choice of channels with which to engage.


A new approach The report does not necessarily advocate an ‘either/or’ approach to future debt-recovery strategies, but rather that the two – that is to say, defining the customer journey and


outsourcing collections – can be seen as complementary activities. It says that reducing customer complaints, and increasing


to a third party. With the water industry being opened up to even greater competition, and demands for their services on the increase, business-process outsourcing may well hold the key. With water companies needing to focus on their core capabilities,


collections, it is argued, is an area where outsourcing could deliver real benefit. “Experts,” the report says, “will provide best-practice expertise and operations, industry-current compliance with evolving regulation, and innovation to stay abreast of developing market and customer needs.” The advantages a specialist collections agency can bring are many and varied.


July 2017


customer satisfaction, will not only improve collection rates but prevent customers from falling behind with their payments in the first place, protecting the most vulnerable in society, whilst ensuring the water companies have the resources they need to continue to invest. Capita has perhaps fired the opening salvo into what it likely to be


a long discussion, and one in which the CSA will become increasingly engaged. It will feature in a dedicated ‘Debt Collection in the Open Water Market’ session in the New Markets Stream at this year’s UK Credit and Collections Conference in September. CCR


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