 |
 |
|
|
| Newsflash #25 |
15th November
2005 | |
 | |
A Gas & Electric Utility Corporate eBilling Return On Investment
Return on Investment (ROI) is probably the most
important consideration when it comes to a
technology decision. Getting actual numbers with
which to calculate is often challenging; utilities
do not have accurate internal numbers, all costs
are not taken into account and the technology in
question may span several internal divisions.
Striata recently won a large electric & gas
utility EIPP project in Texas. During this
process, we were fortunate enough to have accurate
and well thought through numbers to work with -
both on the presentment & payment
side: |
|
'A North American Gas
& Electric Utility Corporate eBilling
ROI'
- Statistics on the utility that this ROI was
performed for:
- 600,000 electric customers
- 300,000 natural gas customers
- 90 000 corporate customer accounts
- An average of 4.4 bills per corporate
customer
- For the purposes on the ROI, we've used a
conservative corporate adoption rate of 30%
after 30 months.
- This ROI is based on hard cost savings only
and excludes expected savings from:
- Reduced Days Sales Outstanding
- Significantly reduced costs of bill stuffers
- Improved communication / query handling
- The project details are:
- A Striata Securely Encrypted PDF multi email
bill will be used.
- The email bill will incorporate an embedded
data file for the corporate to upload into their
accounting system.
- The email bill will use the Striata
'in-email' payment solution (Striata BillPay).
- Corporate customers will not be required to
register, choose nor remember a username and
password.
- Paper will be automatically stopped after
confirmation has been received that the email
bill is being used.
- Implementation is targeted at 10 weeks.
| Number of
corporate accounts: |
30,000 |
|
| Number of email
bills per month: |
+/-
7,000 |
|
| Total for 24
months: |
$
180,000 |
|
| Total email bill
delivery costs for 24 months: |
$
60,000 |
|
| Upfront
development cost: |
$
55,000 |
|
| Payment setup
& monthly fees for 24 months: |
$
27,500 |
|
| 24 month
SLA: |
$
34,100 |
|
| Total 24 month
project costs: |
$
176,600 |
|
| |
|
|
| Current cost for
paper delivery: |
$5.50 |
(4.4
bills) |
| Current paper
check processing cost: |
$1.45 |
(4.4
bills) |
| Cost for your Bank
to process the email bill ACH
instruction: |
$0.10 |
|
| Striata BillPay
ACH cost: |
$0.14 |
|
| Average cost to
present each multi email bill: |
$0.38 |
|
| Average cost
savings per email multi bill: |
$6.34 |
|
| Total savings for
24 months: |
$777,600 |
|
| |
|
|
| Total net savings
in 24 months: |
-
$601 000 |
|
Summary: This North American utility will
save a minimum of $44 per corporate customer,
per annum.
We look forward to sharing the actual figures
with you once the project has been live for some
time. | |
|
Do not hesitate to contact us: we will gladly
work out similar figures for your EBPP or EIPP
project.
Regards, |
|
|
| | |
|
| |
Editorial: 48 Wall Street, Suite 1100, New York, NY, 10005. Visit our Press Office here
(c) 2005 Striata North America. You may forward this newsletter without cutting. All other rights reserved. Contact us for reprints/story use at info @ usa.striata.com, or call +1 88 88 USAPAY.
To unsubscribe: Send a blank email to leave-usanews @ usa.striata.com or call us at (877) 531 9666 for assistance.
Have you received this email from a friend or colleague? Why not get your own copy of our bi-monthly Newsflash about secure email 'Electronic Invoice Presentment & Payment'. To join now
Go here
| | |
