Power utility PPC has expressed satisfaction over the results of its recently revised payback system concerning unpaid receivables, a more appealing scheme with lower deposit demands for ensuing installment-based settlement of arrears.
In the final quarter of 2019, the new payback system, launched October 1, drew approximately 110,000 customers who agreed to terms for settlement of an overall sum worth 155 million euros.
Debtors qualify for the new payback plan by providing deposits representing up to 20 percent of their arrears, compared to deposits of between 40 and 50 percent demanded until the end of last September. A 30 percent deposit is required if customers prefer to settle debt over a greater number of installments.
Stricter monitoring of strategic debtors, or customers deemed able but unwilling to service unsettled amounts, has also helped improve the power utility’s collection record for its increased unpaid receivables, now stabilized at 2.7 billion euros, according to state-controlled PPC.
Highlighting its tougher approach, PPC has issued 55,000 electricity supply cut orders to distribution network operator DEDDIE/HEDNO over the past four-month period.
An overall improvement in customer punctuality concerning electricity bill payments has been discerned since the new collection measures came into effect, the utility has noted.
The collection of 155 million euros through the payback plan promises to offer PPC a considerable cash-flow boost. An even bigger boost is expected from the prospective securitization of unpaid receivables worth 1.5 billion euros, a plan that could be carried out within the first quarter of 2020 through two separate packages.