{"id":10848,"date":"2024-07-08T15:08:50","date_gmt":"2024-07-08T13:08:50","guid":{"rendered":"https:\/\/creditsuite.eu\/end-of-the-protected-market-new-scenarios-for-debt-collection\/"},"modified":"2025-11-27T11:53:24","modified_gmt":"2025-11-27T10:53:24","slug":"end-of-the-protected-market-new-scenarios-for-debt-collection","status":"publish","type":"post","link":"https:\/\/creditsuite.eu\/en\/end-of-the-protected-market-new-scenarios-for-debt-collection\/","title":{"rendered":"End of the protected market: new scenarios for debt collection"},"content":{"rendered":"

Goodbye protection regime<\/strong><\/h2>\n

July 1, 2024 marked the end of the protected market for electricity in Italy, opening the door to a more free and competitive landscape. This change will have a significant impact not only on consumers, but also on the utilities sector, with particular reference to credit management.<\/p>\n

A freer market, more credit risk<\/h2>\n

The liberalization of the energy market introduces an element of uncertainty for supply companies: with more choice for customers, competition intensifies, prompting companies to review their business strategies and the prices they offer.<\/p>\n

This new scenario could result in increased credit risk for utilities.<\/p>\n

Rising credit risk: challenges for utilities<\/h2>\n

The widening customer base in the free electricity market, with a more diverse pool of users in terms of socio-economic characteristics and payment behavior, is a factor of uncertainty for utilities. Creditworthiness analysis becomes more complex, requiring more sophisticated assessment tools that go beyond traditional financial parameters.<\/p>\n

In addition, potential volatility in energy prices due to geopolitical, speculative, or supply condition-related factors could lead some customers to engage in risky payment behavior by delaying or even omitting bill payments.<\/p>\n

This outlined scenario exposes companies to a potential increase in credit risk, with possible negative consequences for their profitability and financial stability. It therefore becomes crucial for utilities to implement effective credit management strategies and tools<\/strong> to mitigate these risks.<\/p>\n

The adoption of specific credit management software can prove a valuable ally in this process.<\/strong> Such tools, equipped with advanced credit analysis, scoring and payment monitoring capabilities, can support utilities in meeting the challenges of the deregulated market.<\/p>\n

New challenges and strategies<\/h2>\n

To meet these challenges, utilities will need to adopt a more proactive and flexible approach to credit management. They become crucial:<\/p>\n

    \n
  • more advanced credit scoring models,<\/strong> integrating alternative data and artificial intelligence techniques, can enable more accurate assessment of customers’ creditworthiness, even in the presence of nontraditional risk profiles;<\/li>\n
  • The promotion of automated forms of payment<\/strong>, such as bank direct debit or online payments, which can reduce the risk of default and simplify cash flow management for businesses;<\/li>\n
  • offering customized installment plans<\/strong> and flexible payment solutions<\/strong>, which can help customers in financial difficulty meet their obligations, facilitating debt collection and averting the onset of arrears;<\/li>\n
  • the development of timely and efficient debt collection strategies<\/strong>, based on a collaborative approach with customers and the use of legal tools where necessary, which becomes essential to protect the economic interests of utilities and minimize losses from insolvencies.<\/li>\n<\/ul>\n

    Effectively managing credit risk in the new free electricity market scenario is a crucial challenge for utilities. Integrating credit management software with other business systems, such as CRM or billing, can create a centralized and automated workflow, improving the efficiency, transparency, and consistency of credit management processes.<\/strong><\/p>\n

    Adoption of these instruments is a strategic investment for utilities, as well as helping to mitigate credit risk, optimize collection strategies, promote long-term healthy and sustainable growth, and improve the quality of service provided to customers.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Goodbye protection regime July 1, 2024 marked the end of the protected market for electricity in Italy, opening the door to a more free and competitive landscape. This change will have a significant impact not only on consumers, but also on the utilities sector, with particular reference to credit management. A freer market, more credit…<\/p>\n","protected":false},"author":1,"featured_media":10844,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"two_page_speed":[],"footnotes":""},"categories":[22],"tags":[],"class_list":["post-10848","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en"],"_links":{"self":[{"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/posts\/10848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/comments?post=10848"}],"version-history":[{"count":2,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/posts\/10848\/revisions"}],"predecessor-version":[{"id":11953,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/posts\/10848\/revisions\/11953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/media\/10844"}],"wp:attachment":[{"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/media?parent=10848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/categories?post=10848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/creditsuite.eu\/en\/wp-json\/wp\/v2\/tags?post=10848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}