Customer and Utility Benefits of Energy Affordability Programs
Synapse supported the National Consumer Law Center with a report on the benefits of energy affordability programs, including discount rates and arrearage management plans. Synapse's research found that these programs consistently help customers make timely bill payments and reduce utility debt, which in turn help utilities and ratepayers avoid costs associated with bad debt, financing, and debt collection activities. Existing estimates of utility cost savings from reduced bad debt range from 20 and 60 percent of the reduction in arrears resulting from program participation. However, these avoided costs are often not quantified and not factored into estimates of program costs and benefits. Based on these findings, Synapse provided recommendations to improve data collection and program evaluation to better understand the impacts of energy affordability programs on utility system costs.