How Utilities Can Mitigate Account Arrears After Moratoriums: Insights from Consumers Energy
Consumers Energy demonstrated strong leadership and commitment to customers during the government shutdown. The utility played an active role in the Utility Customer Relief Action Plan Roundtable in late October and brought valuable, forward-thinking insights to the November Vulnerable Customer meeting.
During the call, members shared strategies to help utilities manage account arrears that often accumulate during shut-off moratoriums. Consumers Energy provided a detailed look at their approach, which has delivered strong results.
👉 Related award-winning Insight Center case study: Consumers Energy’s “My Personalized Offerings” Reward Engagement for Vulnerable Customers
When moratoriums end, utilities face a surge in overdue balances, particularly among vulnerable populations like seniors. Without proactive engagement, these arrears can lead to costly truck rolls and negative customer experiences.
Consumers Energy’s Senior Outreach Campaign activates as the winter shut-off moratorium (November 1 – March 31) nears its end. Here’s how they do it:
- Omnichannel Communication
Customers receive emails and postcards reminding them of outstanding balances and available resources. The goal is to re-establish payment habits before protections expire. - Timing Matters
Seniors historically became eligible for energy assistance funding on April 1, the same day protections ended. Consumers Energy aligned outreach efforts to ensure customers were informed and prepared. - Customer Service Readiness
- CSRs were trained to handle inquiries efficiently and guide customers through assistance options.
- A priority phone line was created for seniors, ensuring they could quickly connect with a representative after receiving outreach communications.
Consumers Energy reports significant reductions in arrears and fewer truck rolls, which are clear indicators of success.
Key Takeaways for Utilities
- Start early: Engage customers before protections expire.
- Use multiple channels: Combine digital and physical outreach for maximum impact.
- Train your team: Ensure CSRs understand timing and available resources.
- Prioritize vulnerable customers: Dedicated lines and tailored messaging improve customer experience.
This collaborative input demonstrates how thoughtful planning and customer-centric strategies can help utilities navigate the post-moratorium period effectively.
➡️ Learn more about the Vulnerable Customer Leadership Council by reaching out to Tim Herrick.
You may also like these blog posts:
- Utilities, Partners Act to Mitigate Government Shutdown Effects on Vulnerable Customers
- Executive Issue Paper No. 09 – Energy Affordability in a Changing Policy Landscape
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