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Cost to Serve - A Review of Experience and Dynamics Across Multiple Geographies
Datamonitor, Jan 2010, Pages: 28
For Energy Utilities reducing the costs of servicing customers is a priority. However, outcomes are very different across Europe due to a mix of regulatory/government edict, the state of the banking system, the culture and habits of the citizens, and the choices made by the operating utilities. As we move into the Smart metering world cost to serve will be significantly impacted
Scope
- Insight into why cost to serve differs significantly from country to country through a review of key metrics
- The arguments to take to regulators and governments to steer the debate on the future delivery model in the Smart world
- An understanding of the system components that need to be managed together if cost to serve is to be minimised
Highlights of this title
There are three different system models operating across Europe. The northern European model of Germany and the Netherlands with annual billing and customer own reads. The Southern European model, with high billing and high utiltiy meter readng rates, and the middle ground characterised by the UK and France
The Northern European model is clearly best in class in terms of lowest cost operation. The Southern European model comes in second place. The middle ground is the expensive place to be.
It is the system that is the determinant of cost to serve. Only by understanding the system and getting stakeholders to make specific decisions regarding billing, revenue collection, and customer information provision, will best practice cost to serve become the norm in the Smart world.
Key reasons to purchase this title
- Gain insight into what drives the enormous difference in cost to serve metrics between countries
- Build an understanding of the system which links meter operations to billing and to call centre staffing - and how to optimise it
- Gain the ammunition to further the debate with regulators and governments on the optimum system design for the smart world
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