Case Study Sweden: Energy bill to energy statement payment flexibility

Transcription

1 Case Study Sweden: Energy bill to energy statement payment flexibility

2 TailorMade in short Billing for Telco and Utilities Office in Stockholm Sweden and Summit New Jersey Modern Holdings Inc. Long-term investment since 2005 in Utility offering Focus markets Scandinavia The US Some European competitive markets Partner strategy

3 Background within Telco Large transaction volumes +20 markets and +25 million customers Competition and cost efficiency Ex. $4 vs. $0.70 per invoice Pricing real-time or near real-time Flexibility in payment process Product strategy not a consultancy

4 TailorMades solution offering Micro Production Billing Smart City Billing Smart Billing Large Account Billing Budget Payment Hot Billing Pre Paid Convergent Invoicing

5 Sweden electricity facts Total consumption 2009, TWh Consumption per capita 2009, kwh The distribution system is divided in three levels Local distribution system operators DSO (170) Regional DSO (3) The Swedish national grid Approximatly 5.2 milion electricity users connected to the grid Approximatly 100 electricity suppliers

6 Swedish electricity market

7 Smart meters since market challenges Increased competition 6-12% churn Market consolidation in retail business Increased transparency in risks for the consumers New business models Additional services and bundles

8 Market trends The requirements are: monthly readings (<63 Amp) There is a shift against hourly reading More data is being collected from the meters Different kind of home display are being offered to customers. Customer segmentation and converged billing Similarities to Texas

9 Bixia Started in 1997 Energy retail company Owned by 9 regional utility companies 18 offices in the south and middle of Sweden Energy purchase at Nordpool Fourth largest in Sweden, customers and turnover sales 3 billion SEK

10 Utility Account case -Bixia Multiple services with different CIS and billing processes Bixia new brand is joint venture focusing on retail business and added services No common customer view 8% churn and increasing

11 Bixia -The new offering One bill for all services Segmented new utility account offering Budget payment plan to utility account Account fee Interest Instalment payments Deposit account

12 Utility account overview Can handle: Electricity Heat Water Broadband Telephony Gas TV Service Providers Etc.. Electricity Heat, etc Customer Self service Utility Account Open or smallest amount bill Payments Bank / Direct Debit Top up through -Direct debit, optional amount - Direct payment from bank - Credit card -Voucher

13 Utility Account consumer value Even cash-flow Improved cost control Simplified payment process Direct debt payment Personalized information and billing process Extra service with My Account

14 Utility Account Utility company value Loyalty tool Added services New financial revenues improves retail margin Interest and account fees Segmentation in offerings and collection flow Stand-alone product with limited integration with CIS required One bill convergent invoicing solution lower costs Simplified administration of certain payment processes

15 Bixia Some results Churn lowered with more than 50% among utility account customers ROI less than 6 months Savings with one billing Retail revenue margins up ca 30% for utility account customers Will make all customers Utility Account customers

16 Hot Billing case Storuman Energy - Energy retail company located in the north of Sweden electricity customer - 20 employees - Only electricity retail customers with low margin - Volatile market prices increase risks in the retail business with most customers on fixed price contracts

17 Hot Billing Overview Objects Meter values Hot Billing Prices Rated values Energy bill

18

19 Transparency for the customers

20 Jari saved 50 öre/kwh Jari in Borås saved 50 öre per kwh in December 2010 as he had selected a new modern electricity contract. With Elmixen he saved 951 kronor (approximately $150) that month.

21

22 Storuman Energy Some results - Over 60% of new customers choose the new Elmix product - PR-value and meetings with ministers - Lowered risk in the energy retail business with up to 50% on Elmix customers

23 Thank You! Jesper Uhlin, Product Manager TailorMade

24 BILLING SOLUTIONS THAT ADD BUSINESS VALUE