Eager questions and a positive reception at a recent Chicago conference confirmed the appeal of Deposit Alternatives’ revolutionary option to the traditional deposit practices of utility companies.
Eager questions and a positive reception at a recent Chicago conference confirmed the appeal of Deposit Alternatives’ revolutionary option to the traditional deposit practices of utility companies.
Deposit Alternatives’ presentation at the EUCI Credits & Collections 2018 Conference in June boosted the company’s profile with utility professionals and spread the word about its innovative deposit alternative plan (DAP) that’s risk-free for utilities and a great option for consumers.
DAP provides the option of a smaller, nonrefundable deposit to activate service. In case of default, the DAP-Plus feature can reimburse the utility up to 125 percent of the traditional deposit amount.
At the conference, “It was very clear that this was a new concept,” Steve Shelton, Deposit Alternatives Chief Operating Officer said, fielding curious questions from a rapt audience.
With co-presenter, Texas-based retail electric provider Champion Energy, Deposit Alternatives offered attendees “The Problem with Traditional Security Deposits for Utilities.” Ranked highest in customer satisfaction in Texas by J.D. Power in six of the last seven years, Champion is among Deposit Alternatives’ earliest clients to integrate DAP as an option for its customers.
“Since launching DAP almost two years ago, over 80% of our deposit-required customers have chosen DAP over the traditional deposit option,” says Michael Thomas.
At a time of economic insecurity, when average households see a hike in debt-to-income ratio, a choice that can reduce bad debt for utilities, plus reduce the out of pocket cost to new customers, has never been more attractive.
The conference’s intimate setting afforded key one-on-one time with utility professionals. Curiosity bordered on excitement about DAP, Shelton said, relaying one attendee’s view after digging deep on the details, “Wow! What a cool idea!”
The EUCI conference introduced Deposit Alternatives to the utility industry at large, with Champion Energy at its side, and pointed toward a broader market focus.
Deposit Alternatives LLC launched its bold, elegant option to traditional security deposits in June 2016. Since then, an innovative mindset has led to enhancements such as DAP-Plus and the even newer DAP Split Pay, which divides the DAP charge into two installment payments — an even easier option for budget-minded and lower-income consumers.
“We knew we had a viable product in the deregulated markets,” Shelton said. “The response and the reception to DAP-Plus and DAP Split Pay really showed us that the regulated market is a place for us, too. That’s where we’re really going to be focusing our efforts over the next 12 and 24 months.”
