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Arrearage Burdens: A Growing Challenge for Utilities and Customers

By Allison Herdic, Senior Industry Analyst

The utility industry is facing a mounting, multi-layered challenge: arrearages and delinquent accounts have become the most pressing concern for utilities, according to Chartwell’s 2024 Payment Industry Survey. Arrearage-related hurdles were cited at a rate of more than twice that of any other challenge, underscoring the widespread impact on both utilities and customers alike.

👉 On the blog – Proactive, Personalized, Powerful: Con Edison’s Arrearage Emails Drive Engagement

Delayed receivables are a key driver behind the rise in past-due accounts. The survey reveals only 32% of utilities are currently posting payments immediately to customer accounts. Other respondents report experiencing delays—8% post same-day, 11% within one business day, and 21% take up to two business days. These lags can create confusion for customers and complicate the process of distinguishing between accounts in good standing and those in arrears.

Accurate, real-time accounting is increasingly seen as essential for informed decision-making and customer transparency. Chartwell researchers have observed utilities are making real-time payment processing a top priority, though contracts and technology limitations serve as barriers to rapid adoption.

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The stakes are high: Data from NEADA’s Energy Hardship / Arrearages Reports as of 2024 highlighted that U.S. households collectively owed $17.4 billion in electric and gas utility debt, with nearly one in seven households affected by arrearages. As utilities and customers navigate this complex landscape, investments in payment technology and clear communication will be critical factors in alleviating arrearage burdens and fostering financial stability for all.

 

Learn more about the Billing and Payment Leadership Council by contacting Tim Herrick.

 

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