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| National Gross Gas Write-offs* |
| $ |
1 |
, |
6 |
0 |
3 |
, |
9 |
7 |
3 |
, |
0 |
6 |
3 |
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| Cost Analysis |
Leading Industry studies document the following changes in customer behavior following the Remote Gas Shutoff installations.*
The studies document:
The GasZone Remote Gas Shut-off Program was found to be the most cost-effective method of gas termination for delinquent accounts. The Remote Gas Shut-off Program installed costs are 20% of the cost of relocating a meter. In other words, meter relocations are 5 times more expensive than GasZone's Remote Gas Shut-off Program.
| Termination Method |
Average Cost
(Includes Installation) |
Remote Gas Shut-Off Program Savings |
| GasZone Remote Gas Shut-Off Program |
$364 |
|
| Meter Relocation |
$2,000 |
$1,636 |
| Valve Shut-off at Roadway |
$1,000 |
$636 |
| Service Abandonment |
$1,000 |
$636 |
Independent Study Results
- Reduction in bad debt write-offs
- Immediate, remote gas shut-off
- Elimination of multiple field calls (CGI's)
- Faster terminations since crew does not need to gain access to dwelling
- Reduced phone calls, notices and legal action
- Reduction in number of crew visits
- Decreased labor time: one man crew needed instead of two man crew
- Employee safety
- Reduction in Write-offs and expenses related to uncollectible accounts
- Reduction in "Bleeding," or unpaid gas consumption
Measurable Changes in Customer Behavior
Nearly 40% of the valves installed had been subsequently locked. The Remote Gas Shut-off provided leverage which motivated delinquent customers to start making payments on the account.
GasZone Remote Gas Shut-off Program's Return on Investment
- ROI in less than 1 year (immediate cash flow)
- Stops the bleeding
- Saves carrying costs of unpaid accounts receivable (DSO)
- Reduces overall collection expenses
- As valve installations becomes part of rate base, earnings and depreciation benefit
Benefits to Billing Credit & Collection Department
- Changes customer behavior
- Empowers customer service representatives
- Reduces days to termination (aka Days Sales Outstanding)
- Reduces phone calls, notices, legal action
- Reduces bad debt
* Contact GasZone for further information. |
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