Traditional debt management can be effective, but it often lacks empathy toward the reality of households. Today, the true challenge lies in transforming collections into an intelligent and human-centric process. To achieve this, utilities require a unified customer management platform that, by integrating critical data and processes with advanced technology, can deploy AI-powered proactive actions, segment vulnerable customers, flexibly create assistance programs, and enable a truly omnichannel collection ecosystem. Discover how to ensure the financial health of your operation while protecting the relationship with your customers.
Increasing debt: a global challenge testing traditional utility management
The increasing customer debt in the utility industry has become one of the primary global financial strains. This issue reflects the combined impact of energy inflation, the rising cost of living, and the greater economic vulnerability of households, which has created distinct scenarios across different regions:
- In North America, for example, according to NEADA [1], nearly 21.5 million households (1 in 6 households) are behind on their energy bills. At the close of March 2025, outstanding debt in the U.S. reached USD 21.4 billion, a historic figure that compromises the sector’s liquidity.
- In Europe, according to Eurostat [2], 6.9% of European households already report systematic payment arrears, facing growing regulatory pressure that limits service disconnection actions to protect vulnerable consumers.
- In Latin America, the outlook is equally critical; in Colombia, according to Forbes [3], debt projections for 2025 reach 7.6 trillion COP. This figure includes not only end-user delinquency but also debt accumulated from unpaid subsidies to companies.
Despite regional variations, utilities face a common denominator: a debt collection management process that is increasingly complex and bounded by regulatory frameworks designed to protect vulnerable consumers. In this global scenario, delinquency is a structural risk that threatens cash flow and the financial sustainability of the sector. However, the crisis is not only economic but also social; traditional collection methods are deteriorating customers relationships, increasing pressure on companies, and forcing them to transform their credit and engagement strategies toward more human and efficient models.
Utilities need to modernize their strategies and adapt to a new era where empathy, automation, and flexibility have become essential elements of their collection strategy. Given this context, the question is no longer how to maximize debt recovery, but how to do so without compromising customer relationships.
How Smartflex revolutionizes debt management with empathy and technology
Smartflex acts as the strategic core of the operation, offering 360° management that enables a shift from reactive billing to a proactive approach. Here, operational efficiency stops being an aspiration and becomes a reality; where others see magic, Smartflex implements advanced engineering to unify operations and strengthen delinquency management through essential capabilities:
- Accurate Billing and Revenue Management: Smartflex accelerates cash flow through traceable and automated billing. This not only ensures that the charge is correct from the start but also drastically reduces errors, claims, and commercial losses that typically fuel delinquency. In fact, Smartflex implementations have demonstrated a 43% reduction in billing processing times, directly impacting liquidity and operational efficiency. This performance addresses the structural risks that threaten cash flow and the financial sustainability of the utility sector.
- Intelligent Segmentation with Embedded AI: The platform utilizes analytics to transform data into immediate decisions. Using embedded Artificial Intelligence (AI), it could predict non-payment risks and create profiles based on real habits, allowing the platform to activate intelligent workflows. This enables debt management teams to act with maximum precision and offer personalized solutions before debt escalates.
- Automation and Flexibility: Thanks to its rules-based design, Smartflex facilitates the agile creation of automated collection plans and assistance programs. This allows utilities to offer timely payment options and financial relief plans that adapt to specific circumstances.
- Omnichannel Engagement and Proactive Relationships: The platform drives digital adoption, allowing customers to resolve inquiries, manage payment agreements, and perform transactions 24/7 without friction. With this model, utilities using Smartflex have processed over 37% of their payment agreements through our digital self-service portal, significantly reducing operational collection costs and freeing up human team capacity for more complex cases.
Improving profitability and customer relations
Smartflex not only helps improve operational efficiency but also strengthens the bond with customers through empathetic debt management. With our platform, utilities recover revenue and ensure financial stability without compromising customer satisfaction or resorting to extreme disconnection measures.
Do you want to learn more about how a unified platform can transform your utility company?
Don’t miss our session at the Credits and Collections Deep Dive during the next edition of IUCX, the premier international event for customer experience leaders in the utility sector. We will be discussing how a Unified Customer Operations Platform can help utilities become more profitable and improve customer satisfaction. We look forward to seeing you there!
References
[1] National Energy Assistance Directors Association. (2026, febrero). Energy Hardship Report: February 2026 Update [Presentación de PowerPoint]. https://neada.org/wp-content/uploads/2026/02/energyhardshipfeb26.pptx
[2] Eurostat. (2024). Arrears on utility bills – EU-SILC survey [Conjunto de datos]. European Commission. https://ec.europa.eu/eurostat/databrowser/view/ILC_MDES07/default/table
[3] Forbes Colombia. (2025, 12 de mayo). Contraloría y Procuraduría advierten que deuda de $7,6 billones del Gobierno amenazan la prestación de servicios de gas y energía. https://forbes.co/2025/05/12/actualidad/contraloria-y-procuraduria-advierten-que-deuda-de-76-billones-del-gobierno-amenaza-la-prestacion-de-servicios-de-gas-y-energia
