RMG Signs Agreement With NZ'sTop Power Companies
RMG Signs Agreement With New Zealand’s Top Power Companies
e-services operation aims to save power industry millions on the 250,000 customers switching suppliers each year
Auckland: December 5, 2000 – Receivables management company RMG Limited today announced it had reached a heads of agreement to supply credit reporting and debt recovery information to New Zealand’s biggest power companies.
RMG will provide the new facility through its wholly owned subsidiary CreditNet International, which will partner with Auckland database intelligence company Atlantis Marketing Limited. RMG this year took a 25 per cent stake in Atlantis Marketing.
Under the terms of the agreement, RMG’s CreditNet service will use an Internet platform to provide credit reporting services to the power supply companies. Companies covered by this agreement account for 75 per cent of all New Zealand power customers.
Discussions with the remaining power suppliers are at an advanced stage, RMG said today.
Nigel Hamilton, CreditNet Product Manager for New Zealand, said power companies had large customer bases, with 250,000 customers switching power suppliers each year.
“Managing the exit and entry of hundreds of thousands of customers a year is a challenge for all large utilities, and one where considerable efficiencies can be gained through the use of modern e-business tools,” said Mr Hamilton
RMG’s CreditNet service will create significant efficiencies when customers switch from one power company to another.
RMG chief executive Paul Cooney said today “This initiative has the potential to make a 10-15 per cent reduction in the level of bad debt write-offs the power industry incurs each year. This will save the industry millions of dollars a year.
”Our ability to operate an Internet enabled, e-Services option to assist in the decision making will make a significant difference in Power suppliers’ ability to manage their customer relationships.”
Mr Cooney said the agreement with the power suppliers had been reached after months of intense competition.
Power suppliers involved had decided months ago to act as one group and work with one credit information supplier.
“This is a valuable initiative for the industry and the group decided to select a single preferred supplier,” Mr Cooney said.
Mr Cooney also said that while details of the arrangements between the parties remained confidential, it could be assumed that the agreement had potentially significant revenue implications for RMG.
The first of a number of new initiatives in the credit information sector, CreditNet’s energy solution pioneers the deployment of technology in an industry-based model. The technology model is easily modified, ensuring speed to market, flexibility in meeting changing customer and industry requirements, and ready deployment to other industries. Further innovations will develop in the energy field over the coming months.
CreditNet will comply fully with all credit information legislation, a priority requirement, which has been thoroughly addressed in the specification of the system.
RMG is the first Trans-Tasman Company to offer an integrated range of receivables, debt management, and credit reporting under a single umbrella. The company was formed by the merger of a number of receivables management companies in Australia and New Zealand. With over 650 staff with 28 offices in Australia, New Zealand and Asia, RMG is the largest receivables management company in Australasia.
Services include traditional debt recovery and receivables management, credit information and database management services, debt purchasing, factoring, ledger management and complete outsourcing of a company’s receivables function through leading edge internet-enabled technology.