Increasing debt levels on residential heat networks is a problem for many landlords.
Residents are being impacted by rising costs in every aspect of their lives, from energy to food and fuel. The threat of slipping into debt and fuel poverty has never been greater. Switch2’s debt management service is built to catch that early, supporting residents to manage what they owe, in a way that’s fair, proportionate and in line with Ofgem’s heat network consumer protection rules.
- 400% – Increase in debt over 6-months following end of debt management services.
- 64% – Average debt reduction with a standard debt management contract.
- 60% – Of scheduled disconnections cancelled on receipt of a payment, and agreement of a payment plan.
- 30% – Reduction of customer debt in just 6-months, without the option of disconnection.
How it works
- Early identification and support is carried out, before any recovery action begins. We check whether a resident is registered, or should be, on our priority services register. We then assess individual circumstances, and offer additional support or alternative routes before any formal recovery steps are taken.
- Residents are contacted with a clear and reasonable window to make payment or agree a budgeted payment plan suited to their circumstances.
- If a contact doesn’t resolve the debt, we issue a clear final notice, setting out the deadline and next steps, along with details of how to raise a concern or dispute the debt.
- Where a debt remains unresolved and no vulnerability concerns apply and where legally permitted, further action may include a prepayment meter installation or in limited cases, disconnection. These are always a last resort, never a default, and never applied where Ofgem’s protections for vulnerable consumers restrict their use.
‘Switch2’s debt management team have demonstrated a clear commitment to delivering a high standard of customer service, which complements our own approach to customer service at Urban Splash. One of the key challenges we have faced is rising gas prices, and the consequences this has had on our residents. Despite this Switch2 have managed to recover significant monies, without having to disconnect residents, which is testament to Switch2’s approach to customer service.’
Julian Curnuck, Finance Director, Urban Splash
Switch2 debt management allows you to remove the risk and responsibility of pursuing all arrears. Customers given 10 days to make payment.
Telephone prompt for full payment or engage in a budgeted agreement.
Final demand notice sets the customer a deadline to make payment before further actions such as disconnection begins.
All non-payers offered a window of seven days to avoid disconnection.
Flexible Disconnection Options
Prepayment (PAYG) units
Where appropriate and permitted, PAYG units can be installed to help residents manage repayment alongside ongoing usage. This is never used where a resident has been identified as vulnerable and disconnection or forced PPM installation would put them at risk, in line with Ofgem’s safeguards on prepayment meter installation.
Full Disconnection
Used only as a last resort, following notice and after vulnerability checks. Reconnection follows promptly once an agreed payment has been made.
Staying compliant, staying fair
Switch2 is authorised under the Ofgem’s heat network regulations and our debt management process is built around the same fair treatment standards Ofgem expects across the sector. Transparent communication, proportionate action and extra protection for anyone in vulnerable circumstances.