According to new research published by the Commission for the Regulation of Utilities (CRU), rising arrears are increasing in Ireland following the continuing strain on many households due to the rising cost of living.
In the three months to April:
- 286,000 households were in arrears with electricity bills: up over 85,000 on the same period last year, representing about 1 in 8 domestic customers
- 175,500 households were in arrears on gas bills, up about 15,000 on last year
- On average, customers in arrears owed €437 on electricity bills, and €213 on gas bills.
Although inflation is starting to decline from its peak, many households are still under financial pressure from high ongoing costs for essentials like energy, rent and insurance. Without further government supports, it is likely that more households will end up in arrears, causing stress for households and more work for utility providers dealing with increased levels of overdue accounts.
The situation reminds us that it is critical to communicate clearly with our customers who are having trouble paying bills. For organisations that manage receivables, when engaging customers experiencing payment difficulties, communicating early can help:
- To stop long-term debt accumulating
- To retain customer ties during times of financial hardship
- To assist customers to find repayment options that they can manage.
If your organisation is interested in how to engage with customers in a way that considers an increase in arrears due to customer challenges whilst also ensuring organisational financial viability and sustainability, feel free to contact us to discuss best practices and shared lessons.
