Breaking the Disconnect Loop with Proactive Prepay Programs Recap

Feb 11, 2026

Utilities are changing fast. Rising costs, increasing customer debt, and frequent disconnections are putting pressure on operations. Episode Recap of “Breaking the Disconnect Loop with Proactive Prepay Programs” focused on one clear message: proactive prepay programs give customers choice and control while helping utilities manage risk. Many utilities still rely on post-pay billing. This approach can leave customers surprised by large bills, disconnected, or in debt. It also creates inefficiencies and reduces satisfaction. Prepay programs allow customers to pay ahead of usage, track consumption, and avoid surprise fees. For utilities, prepay reduces bad debt, improves customer satisfaction, and increases operational efficiency. 

Utilities face pressure in many directions. Rising energy costs affects customers’ ability to pay. Customer service teams handle more calls than ever. Legacy billing and CIS systems make visibility and reporting slow. Disconnection and reconnection processes are costly. At the same time, customers expect real-time insights into usage and balances. Prepay programs give utilities the tools to meet these expectations. They automate notifications, track balances, and provide flexible payment options. They also reduce manual work and increase transparency. This approach improves customer trust, reduces operational risk, and provides a foundation for digital transformation. 

 

Key Takeaways 


Prepay Puts Customers in Control 
Customers can pay before they use energy. They track usage in real time. No surprise bills. No late fees. No high deposits. Daily or hourly updates let customers manage consumption. This reduces stress and increases satisfaction. 


Prepay Benefits Utilities 
Prepay reduces bad debt. It lowers disconnects and reconnects. Employees can offer real options to customers. Customer satisfaction improves. Debt is repaid consistently over time. Operational costs go down. 


Flexible SAP Framework 
SAP’s prepay solution is built into S/4HANA Utilities. Utilities can track usage, balances, and past debt in one place. Notifications are automated. Thresholds and moratoriums are supported. The framework is flexible for different markets and regulations. It also allows deferred payment plans when needed. 


Training and Change Management Are Critical 
Prepay works best when everyone understands it. Customer service teams need proper training. Leadership support is essential. Programs should be offered to all customers, not just those in financial distress. This builds equity and avoids negative perceptions. 


Prepay Supports Behavior Change and Education 
Prepay encourages responsible energy usage. Customers can adjust habits based on consumption visibility. It also helps families teach budgeting and money management. The program can be a learning tool, not just a billing system. 

 

The bottom line is clear. Proactive prepay programs are more than a payment method. They give choice to customers, reduce risk for utilities, and increase operational efficiency. They improve satisfaction, reduce debt, and provide visibility. Utilities that adopt prepay now are preparing for the future. Those that wait risk inefficiencies, unhappy customers, and higher operational costs. 


Watch the full LinkedIn Live recording here: