The utility billing software market is set to grow to $5.6 billion in 2024. Behind this surge is a profound change in industry practices. Data privacy concerns, fierce market competition, and the push for modernization have driven utilities to reinvent how they operate.
Many organizations now upgrade their legacy systems to keep up with the demands of real-time billing and personalized experiences.
Advanced billing software allows subscribers to access their billing information anytime, anywhere, pay online, and receive prompt support. It sets the standard for what modern utilities should deliver.
This article explains the 8 features of a comprehensive utility billing solution.
TL;DR
- Legacy billing systems create errors, delays, and inefficiencies that disrupt utility operations. Shifting to advanced solutions improves operational efficiency and boosts customer confidence.
- Utility teams that upgrade their billing processes can streamline customer support and leverage accurate billing and centralized data
- The best utility billing software features include automated billing, real-time meter integration, self-service portals, and strong customer service, among others.
Why Upgrading Your Utility Billing System Pays Off
Paper bills, spreadsheets, and outdated software cause ripple effects that can disrupt utility billing processes.
Manual data entry increases error risks. The lack of automation stretches billing cycles. And without real-time data and analytics, companies can’t manage accounts and track online payments.
The result: Operational inefficiencies pile up, costs rise, and customers lose confidence.
This is why utility companies move from antiquated, sluggish systems to automated, industry-specific solutions for long-term fixes. With upgraded billing processes, you and your team can yield long-term benefits, including:
- Billing accuracy. The built-in meter eliminates the need for manual calculations. The platform tracks usage and generates bills based on pre-set rates. Customers then receive bills reflecting exact utility consumption, thus reducing disputes and payment cycle delays.
- Increased visibility. Cloud-based platforms centralize customer information, including payment history, meter readings, and service orders. All data is readily available for faster decision-making and personalized customer interactions.
- Streamlined customer support. Some utility billing systems feature self-service portals. Users can access payment information, monitor bills, and address common issues without contacting a service representative.
Omar AI-Juburi, EY Americas Power & Utilities Technology Consulting Leader, advises partnering with the right service provider to facilitate the shift:
“The key is to begin with the end in mind and understand what steps you need to take to get there.”
With that, here’s what to look for when selecting a provider to future-proof your business.
8 Essential Features to Look for in Utility Billing Solutions
We’ve come a long way from the days of siloed billing systems and tedious reconciliation efforts. Everything is now automated, faster, and more accurate with these 8 utility billing software features.
1. Automated recurring billing
Delinquent payments can drain up to 5% or more of a company’s revenue. While this may not seem like much, it may build up for subscription-based models like utilities.
These overdue payments can disrupt cash flow and operational efficiency, particularly if dealing with large customer bases and high-volume transactions.
Automated recurring billing generates accurate invoices based on pre-set pricing models (e.g., flat rate, tiered pricing). This results in fewer billing errors and a smoother experience for the subscriber and the provider.
2. Real-time meter integration
Real-time meter integration is a must-have feature for utilities that rely on usage-based billing models. It uses accurate, live meter readings to charge customers for what they consume in real-time.
Example: Stax Bill’s API integrations connect to a utility company’s metering system to do exactly that. You can set pricing rules (e.g., daily, monthly, or per usage event).
Stax Bill then automatically processes the data to calculate charges and generate accurate invoices for each customer. It helps prevent overcharging or undercharging that could lead to dissatisfaction or revenue loss, respectively.
3. Self-service customer portals
Long hold times and billing errors are frequent hurdles for utility providers. If something’s wrong, someone has to sift through files, track down customer records, and try to resolve the issue.
Since 61% of customers prefer to solve problems independently, having utility billing software with self-service portals can be a game-changer.
Customers can log into these portals 24/7 to view real-time usage, manage their accounts, and set up payment plans. Consequently, customer support teams have fewer routine inquiries (e.g., billing questions, payment statuses, or usage historical information) clogging their queues.
4. Real-time reports and analytics
Real-time analytics allow utilities to respond immediately to anomalies, such as billing discrepancies, usage spikes, and unauthorized usage. This feature can help prevent issues from escalating into more costly problems.
Stax Bill’s analytics tools, for instance, can track payments and monitor your billing operations through over 50 real-time reports. You’ll have daily interactive snapshots of invoices, payments, refunds, and late notices.
Stax Bill also features a milestone revenue recognition module if you deal with long-term contracts or service milestones. It guarantees ASC 606 compliance by aligning revenue with completed milestones—not payments—for accurate financial reporting.
5. System flexibility
The right utility billing software should adapt to you, not the other way around. You don’t want to adopt a solution that’s incompatible with your existing systems or takes forever to deploy.
Check if your preferred platform integrates seamlessly with your current processes, so you don’t have to overhaul everything. Consider these factors to ensure efficient deployment:
- Customizable billing cycle
- Integration with payment processing platforms and other systems
- Support industry-specific billing or compliance requirements
The more flexible your billing system, the less downtime or disruption to your operations.
6. Regulatory compliance tools
The utility industry is subject to extensive regulation due to its direct impact on public welfare. From pricing and billing practices to data privacy and environmental standards, these regulations ensure utilities operate fairly and responsibly.
At a minimum, your billing software should be PCI-compliant to protect sensitive customer data. Other key features to look for include automated tax calculations, detailed reports, data encryption, and customer notification tools (e.g., billing changes, payment due dates, service changes).
7. Backup and disaster recovery
39% of energy, oil/gas, and utilities reported huge revenue losses due to ransomware. Backup and disaster recovery features are your safety net when cyberattacks like this happen.
Your provider must have regular data backups, cloud storage, and automated failover systems to future-proof your operations. This will help restore your services quickly after a cyberattack or system failure.
Prioritize these utility billing software features to secure customer’s account information and avoid severe financial losses.
8. Ongoing technical support
Tech problems can delay billing cycles, flood your customer service lines, and put extra strain on your in-house teams. Utilities can’t afford to have delayed revenue collection and reputational fallout.
How do they perform with software updates, troubleshooting, and system optimization? Public online reviews are a good starting point to conduct your research.
Partner with a provider who offers dedicated account managers for smooth implementation and ongoing support for the long haul.
Leverage Stax Bill to Optimize Your Utility Billing Process
Investing in a comprehensive utility billing solution can help organizations increase accuracy and manage customer accounts with ease. With Stax Bill, you get full advantage, including automated recurring billing, meter integration, self-service portals, real-time analytics, system flexibility, regulatory compliance, backup, and technical support.
Request a free demo here to learn more about how these features work in Stax Bill. Simplify your billing, eliminate errors, improve cash flow, and stay compliant today.
