Reducing levels of debt

Reducing stubborn levels of debt

Debt advisory and consultancy case study

The client

A leading UK gas and electricity supplier


The utilities provider was experiencing a stubborn level of late final debt which was proving difficult to reduce using their existing collections and recoveries processes.

The project

The TDX Group Advisory team undertook an end-to-end review of the utility provider’s live collections area.

By using the TDX Group Excellence Model – a proven, structured methodological framework to benchmark debt strategy and operational capability – TDX Group was able to identify gaps relative to best practice.

TDX Group solution

A Strategic Review to identify recommendations for operational and process improvements that would actively reduce the level of late final debt.


TDX Group identified several major strategic and operational opportunities to increase revenue and collections, including:

  • Opportunities to increase cash collections by up to £12 million per annum.
  • Process changes upstream of late final debt to reduce the cycling of debt and accelerate cash collections by up to £30 million per annum.
  • £2.5 million of potential OpEx savings

As a consequence of the review the utilities provider re-engineered their processes to move debt through their processes faster in order to optimise opportunities.