Our Revenue Assurance Program works and has recovered over $550MM of revenue since its inception almost ten years ago. During these past years, Truenorth Corporation has designed, developed, and executed several revenue assurance programs, from which we present two success stories:
Puerto Rico Aqueduct and Sewer Authority (PRASA)
Before Truenorth, the Puerto Rico Aqueduct and Sewer Authority (PRASA) had implemented a partially effective Revenue Assurance Program. However, in fiscal year 2009, the public corporation decided to hire our services to take advantage of our integrated approach. After the completion of the initial assessment, the execution was divided into six main activities:
- Meter Replacement
- Water Theft Reduction
- Inactive Accounts
- Data Inconsistencies
- General Processes
Within its first year of implementation, Truenorth achieved $68 million in gross recovered revenue for PRASA, with a return on investment of 466%. Since its inception, the program has accumulated a total of $494 million in recovered revenue for a gross return on investment of 626%.
Over the last years of revenue assurance operations, Truenorth helped to normalize 53,000 theft accounts, replaced 700,000 small meters and 3,500 large meters, and handled more than 200,000 service disconnection per year. Over 40,000 clients visited the PRASA Commercial Offices per year to pay lawfully earned revenue for the agency.
Puerto Rico Energy and Power Authority (PREPA)
In Fiscal Year 2012, PREPA hired Truenorth to initiate a revenue assurance program. The main objectives of the project were:
- Process Reengineering
- Software Development
- Organization Implementation
- KPI Definition
- Strategic Coordination
- Tracking of in-progress cases
The project had a duration of 10 months in which Truenorth recovered approximately $18.4 million in energy theft, $34.5 million in debt collection, and $0.7 million in wholesale clients review. The following chart reflects the accumulated revenue during the 10-month period:
As seen, the project produced an accumulated additional revenue of $53.6 million for PREPA. After successful completion of our initiatives, PREPA decided to insource these vital processes and we turned over the project to PREPA employees which to date continue to carry our methodologies and recommendations.
Truenorth’s Revenue Assurance program applies not only to utility corporations, but also to any industry. Aside from the unquestionable success earned in the public utilities industry, we specialize in the following industries:
- Government (Tax Collection)
- Medical Insurance Industry
- Health Industry in General
As described earlier, our methodology can be fully customized to cover your revenue-recovery necessities.
Truenorth has only presented an overview of the Revenue Assurance possibilities. If your organization faces revenue erosion, and you are concerned with theft, inefficiencies, or unexplained variation of expected results, we are your solution to more predictable results.