Protecting Revenue and Vulnerable Customers Through Assistance Programs

Across the utility industry, rising debt levels are creating a growing strain on customers and utilities. More households are falling behind on payments, and for many, even a single missed bill can lead to cascading financial stress. At the same time, utilities face mounting pressure to maintain cash flow and operational stability. Traditional tools, like disconnections and aggressive collection programs, may recover revenue in the short term, but they often do so at a steep social cost. Cutting off essential services can further destabilize vulnerable households, undermining long-term customer relationships and public trust.  

This reality puts utilities at the center of a complex challenge: how to protect revenue while staying true to their role as community stewards. It requires a shift in mindset from reactive debt recovery to proactive customer support.  

One of the most effective ways to manage this challenge is to rethink the role of Customer Assistance Programs (CAPs) at a strategic level for social good and financial sustainability. CAPs, when well-designed, provide targeted support through bill discounts, extended payment terms, and debt forgiveness options, helping customers maintain access to services while preventing debt from escalating beyond control. However, CAPs alone are not enough. Utilities also need flexible, data-driven payment programs that are tailored to customer profiles and risk levels. These plans should go beyond simple installment options, allowing customer service representatives to negotiate payment terms based on factors such as arrears age, customer type, bill size, and location.  

Additionally, Collaboration with government programs such as the Low Income Home Energy Assistance Program (LIHEAP) in the United States, and access to federal funding remain largely manual and fragmented. This lack of integration makes it challenging for utilities to deliver financial support efficiently and at scale. To broaden the impact, utilities must also build partnerships with nonprofits and private organizations, which can significantly expand the pool of resources available to customers.  

In fact, LIHEAP’s resources were reduced by over 30%, significantly limiting its capacity to support households in need. This strain on energy assistance programs is not unique to the United States, it reflects a broader international challenge. For example, Spain has introduced a social bonus program that provides eligible families with a 25–40% discount on their utility bills. However, despite such initiatives, these measures still fall short of offering sufficient support to the most vulnerable populations. [1]  

Equally important is a proactive approach to customer engagement and education. Providing insights into energy usage, sending early alerts to at risk accounts, and communicating in customers’ preferred languages and channels all help utilities intervene before debt becomes unmanageable. For example, the U.S. Department of Energy’s Weatherization Assistance Program (WAP) generated approximately $3.8 billion in health and household-related non-energy benefits for its clients, equivalent to about $14,000 per household (in present value dollars) [2]. These strategies help reduce energy consumption, leading to lower utility bills and making them ultimately more affordable. However, bringing these strategies to life requires the right digital infrastructure; manual processes alone cannot keep up with the scale or urgency of today’s challenges. 

This is where a customer-centric, holistic, and powerful digital solution can make a real difference.  

Smartflex unifies several strategies into one intelligent, data-driven platform that enables utilities to deliver personalized, automated, and proactive customer support. The system segments customers in real time based on behavioral and financial data, allowing utilities to offer targeted CAP benefits and payment plans without manually reviewing every case. With built-in automation, Smartflex can apply discounts, launch installment offers, and trigger proactive alerts, reducing the risk of disconnection before it becomes unavoidable.  

Beyond internal operations, Smartflex also integrates with government and nonprofit platforms, streamlining the application and approval process. This ensures that more customers receive the help they’re eligible for, more quickly. At the same time, self-service capabilities empower customers to manage their repayment journey, making the experience less intimidating and more collaborative.    

For example, one of our clients successfully implemented a targeted customer assistance program by partnering with a non-profit organization. Using effective segmentation, they identified a specific group of eligible customers. They established an automated data exchange to manage the program efficiently. Internally, Smartflex was key to guaranteeing the integrity of the utility processes. Its powerful billing engine flawlessly executed all necessary billing adjustments based on the information received from the partner. As a result, this initiative provided financial support to 100% of customers who requested help and received it, enabling the utility to strengthen community ties and reduce financial risk.  

By combining customer intelligence, flexible payment options, external collaboration, and smart automation, Smartflex helps utilities lower disconnection rates, improve collections, and build trust through one cohesive solution.  

The future of utility collections isn’t just more efficient, it’s more human. By investing in smarter, more empathetic strategies, utilities can reduce financial risk while better serving their communities. With Smartflex, these strategies become scalable, actionable, and impactful, transforming customer assistance from a cost center into a powerful driver of revenue protection and public value.  

References  

[1] National Energy Assistance Directors Association (NEADA) – https://neada.org/wp-content/uploads/2024/08/August-Summer-Hardship-Report-Final.pdf  

[2] U.S Department of Energy – https://www.energy.gov/eere/articles/more-just-energy-efficiency-program-weatherization-ensures-health-and-safety