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Will Customers Pay in Advance? And Should They? A Look at U.S. Prepayment Metering SystemsPublished by: IDC Published: Aug. 9, 2006 - 14 Pages Table of ContentsTable of Contents Energy Insights Opinion Executive Overview How Prepayment Metering Systems Work Figure: CIC Global Display Unit Figure: Components of Motorola's Prepayment Metering System Utility programs Prepay customer profile Costs Cost savings Fees and prepayment rates Customer Satisfaction and Behavior Customer energy savings Buying patterns Lessons Learned Garnering support and approval Avoiding mistakes Parting Thoughts Table: Prepayment Contacts: U.S. Vendors Table: Selected Utility Contacts Synopsis AbstractDespite slow adoption by U.S. utilities, prepayment metering systems are popular with customers. Many credit-challenged customers are enthusiastic about these systems because they offer greater control and dignity, affording them a convenient way to manage their energy budgets and pay off their utility debts. The cost of prepayment systems is typically recovered by transaction fees or higher rates. Cost recovery is also achieved through reduced bad debt write-offs and avoided customer-service costs. This report is an overview of customer response and use of prepayment metering systems, how the systems work, factors to consider when implementing a system, plus some tips and lessons learned from companies that have tried these systems. Get Full Details About This Report >> |
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