Most utility companies don’t want to send customers to collections, but when payments stall, it often feels unavoidable.
And the scale is serious. According to the National Energy Assistance Directors Association (NEADA), 16% of U.S. households about 21.2 million are behind on their energy bills, with total utility debt reaching $20.3 billion
The longer a bill stays unpaid, the lower your chances of recovery. Once an account hits 90 days overdue, recovery rates drop below 15%.
The good news: collections can often be avoided. With better data, proactive outreach, and flexible payment options, you can reduce delinquencies before they become write-offs.
Most overdue bills don't start as collection cases. They progress due to missed contacts, outdated systems, and delayed follow-ups. Here's how utility companies can intervene early to safeguard their revenue.
You cannot collect if your bills never reach the customer. Many utility companies still deal with incorrect addresses, outdated phone numbers, or missing contact details — which leads to delayed payments, higher operational costs, and unnecessary escalations.
In 2023, the United States Postal Service reported millions of mail pieces marked as Undeliverable-as-Addressed (UAA).
The top reasons: incorrect or incomplete addresses, unreported moves, and outdated contact data. This directly impacts billing timelines across sectors, including utilities.
Pro Tip: Run monthly contact audits, use address validation tools, confirm and update details every time a customer calls, pays, or logs in.
Delinquency doesn’t start at 90 days. It starts the moment a due date is missed and most companies wait too long to respond.
According to reports, 55% of invoices in the US are paid late, and 1 in 5 businesses struggle with cash flow because they wait more than 30 days to act.
By that point, you're no longer just chasing payment. You're managing customer frustration, service risk, and higher operational costs.
For utilities, every day matters. Missed payments quickly lead to service disruptions, escalated collection costs, and increased call center volume — all avoidable with faster follow-up.
Pro Tip:
Create a real-time escalation flow.
Early action is not about pressure. It's about showing the customer you're paying attention and giving them a chance to resolve the issue before it grows.
Customers are more likely to pay on time when the process is straightforward and aligns with their preferences.
A study found that 74% of consumers had made a mobile payment, with 37% using their bank's mobile app to pay household bills
Additionally, research indicates that flexible payment options can help reduce delinquency rates.
Pro Tip:
Evaluate your payment systems from the customer's perspective. Ensure that your payment portals are mobile-friendly, offer multiple payment options, and provide flexible payment plans.
Not every customer responds to the same message. Some need a simple reminder. Others need a bit more hand-holding. That is why one-size-fits-all communication falls flat, especially when bills go unpaid.
If you are texting everyone the same script, or calling customers who prefer email, you are not just wasting effort, you are losing recovery opportunities.
At South East Client Services Inc., We follow industry best practices, use multi-channel outreach (including voice, text, and mail), and always lead with respect.
Our team works with utilities to design contact strategies based on who the customer is, not just what they owe.
If your internal team is struggling to make past-due outreach more effective, we’re ready to help.
Reach out today to see how we do things differently.
Not every customer can pay a full balance right away — especially when they are already behind. For many, the issue is not unwillingness but affordability.
According to reports, 34% of Americans have reported cutting back on or skipping necessary expenses at least once in the past 12 months to pay for utilities.
That is why flexibility matters. Offering payment plans that align with real-world financial situations can keep customers engaged and prevent accounts from slipping into collections.
At South East Client Services Inc., we support utility providers with easy-to-implement options such as:
When customers feel like they have a choice, they are far more likely to pay — and stay.
Even with proactive strategies in place, some accounts will inevitably fall into delinquency. When that happens, the partner you choose can either protect your reputation or put it at risk.
At SECS, we specialize in utility company debt collection. Our team works as an extension of yours, combining empathy, compliance, and data-backed outreach to recover more without burning bridges.
Here’s a look at our homepage, where utilities find tools for faster recovery, flexible payments, and smarter customer outreach.
Utility debt does not have to end in collections. The key is to act early with clean data, timely reminders, easy payment options, and communication that actually gets a response.
At South East Client Services Inc., we help utility companies put these pieces in place — recovering more while protecting customer trust.
Talk to us today and let’s build a smarter path to payment.
This communication is from a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose.
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