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Avoiding Costs in Debt Recovery Following the Introduction of the Default Tariff Price Cap

on Thursday, 28 March 2019.

Following the introduction of the price cap on default/standard variable tariffs, energy companies will be under even more pressure in 2019

Irrespective of whether reports that the cap will rise in April are correct, it remains the case that many energy companies are cutting costs whilst trying to retain customers and maintain cash flow. 

A large part of the cost of maintaining cash flow involves pursuing outstanding debts, which includes time spent gathering the data, reporting on it, and in the absence of resource instructing third parties to help them to recover it.

Here are some of the key steps that you can take to avoid incurring further costs, and if you do not have the resource please call us and we can discuss how we can help you. We offer fixed costs and a range of products to suit your needs.

  1. Separate the accounts where the invoices are outstanding beyond 6 years, and if appropriate write this off.
  2. Review the accounts which remain and consider and separate into categories, those matters where:
  • there has been no attempt by you to contact the customer to discuss the account
  • there is a dispute which you consider is not valid but wish to settle due to the economics of pursuing it
  • there is a valid dispute which should be resolved
  • despite numerous attempts to elicit contact, the customer has not responded

The first and second categories can and should be dealt with internally by you before instructing third parties/solicitors. You can also consider settlement negotiations yourself and this can result in customer retention, if this is preferred by both you and your customer.

The final point is likely to be where you are most likely to benefit from legal advice to help you to identify the best course of action to elicit a response/payment.


If you would like to discuss how we can help you to reduce your debt portfolio please contact Kellie Thatcher on 0117 314 5462.

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