EnergyBiz - November/December 2007 - (Page 56)

amounts may be the same every time or vary from one payment to the next. • Online Bill Payment, in which a consumer submits payment for recurring utility charges via a consolidated bill-paying site such as his or her financial institution’s online banking Web site, and/or through his or her service provider’s Web site. Both solutions provide significant advantages to utilities and utility customers as compared with cash and checks. “Our online credit and debit card payment options give our customers another convenient way to manage their bills with all the protections and benefits of using a payment card.” Tom Clark, Vice President, Customer Services & Service Area Development, First Energy Corp. Leveraging the Rise in Consumer Payment Card Usage A 2007 Jupiter Research study on consumer preferences for paying recurring bills found that the number of U.S. households now viewing and paying bills online reached 45 million in 2006, a number that Jupiter Research believes will climb even higher in the coming years. Reasons for choosing electronic payment include convenience, flexibility, and the chance to earn rewards from a co-branded or affinity card program. Service providers, including utilities, that bill customers on a regularly scheduled basis are offering an attractive payment alternative to cash and checks by accepting cards. And they are offering this payment option not only for initial payments but for recurring payments as well. Utilities are continually looking for ways to improve customer satisfaction, and many of the benefits associated with payment card acceptance tie into and support a utility’s strategy of servicing more customers through self-service channels and delivering options that increase customer satisfaction. Recurring Payments (RPs) Programs Benefit Utilities and Utilities Customers To maximize the benefits of accepting electronic payments, utilities should consider implementing a recurring payments program. Also known as automatic bill payments or direct payments, RPs are tailor-made for utilities, which bill and process millions of statements every month and incur significant administrative costs. Utility charges are the second most common type of recurring bills, according to a 2005 MasterCard® consumer research study. The study also found that while more than three-quarters of Americans pay a recurring utility bill, only 37 percent of those surveyed are aware of the option to pay by credit card RPs while 45 percent know they can pay their utility bills with debit card RPs. The opportunity to convert utilities customers to electronic bill payments is substantial. The 2005 MasterCard consumer research study also shows that within the utility industry, there is a high level of consumer interest in recurring payment options: 29 percent of surveyed respondents would consider credit card RPs and 38 percent would consider debit card RPs. Research suggests that this audience would respond favorably to a provider that offered these options. 56 E n E rgyB i z November/December 2007 tHougHt lEadErsHiP – sPonsorEd By MastErcard WorldWidE

Table of Contents Feed for the Digital Edition of EnergyBiz - November/December 2007

EnergyBiz - November/December 2007 Contents Continental Grid Vision Needed Readers’ Views and Opinions Next for National Grid Clearing the Air The Need for Nuclear Energy Trade Status Report The Innovators California On The Leading Edge FERC Sparks Change Getting Coal Right Leadership in Times of Turmoil Innovation Delivers Return A Tale of Two IPOs LNGs Bright Prospects Generation Techologies The Age of Superconductors Leaders with Vision Get Ready for Plug-in Hybrids Betting on Batteries Cost of Decarbonizing Nuclear Helmsman – A chat with Dale Klein, Chairman of the U.S. Nuclear Regulatory Commission Global Energy Snapshot; Low-Income Energy Help; IT Spending Robust; The Greening of State Regulators; Generating Support Simplifying Offshore Wind Regs Chasing Construction Costs Energy Agency Sets New Course Deregulation Means Higher Rates Go-To Staffer Nightmare in Manhatten

EnergyBiz - November/December 2007

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