The past three issues have focused on customer-friendly policies, including repayment plans, third-party notifications, and customer-selected due dates. Let’s continue the trend by looking at utility customer assistance programs.
Customer assistance plans can take many forms. Common types include low-income or senior-citizen rates, bill payment assistance funds, donation programs, and partnerships with outside agencies.
Low-income or senior-citizen rates
Some utilities offer reduced rates for low-income or senior customers. These rates typically require proof of income (often tied to a percentage of the federal poverty level) or proof of age.
If you are considering implementing low-income or senior-citizen rates, always consult your attorney first. For example, in North Carolina, where I’m based, offering different rates by customer class is illegal.
Bill payment assistance funds
Assistance funds are another way utilities can help customers who are having difficulty paying their bills, often due to specific reasons such as job loss or unforeseen medical expenses. Utilities can establish assistance funds by allocating a line item in their budget or by designating a percentage of revenues.
Another disclaimer – you will again want to verify that you can do this before starting an assistance fund. Also in North Carolina, utility revenues can not fund assistance programs. Local governments may designate general fund revenues for assistance programs, but not utility fund revenues.
Donation programs
A common way to fund customer assistance programs is through customer donations, either through round-up programs or additional, optional charges on the utility bill. Round-up programs allow your customers to choose to have their bill rounded up to the next whole dollar, with the difference designated for an assistance program. Offering a round-up program also solves the penny predicament for your cash-paying customers.
Some utilities also let customers select an additional amount to be charged on each bill for a customer assistance fund. Many also allow customers to pay an additional amount with the overage designated for an assistance program.
And by now, if you’re wondering, donation programs are legal in North Carolina!
Partnerships with outside agencies
Partnerships with outside agencies are probably the most common form of customer assistance programs. These can include churches, nonprofits, and social service agencies. A good practice is to maintain a list of outside agencies to share with customers who ask for help paying their bills. Posting this list on your website is also a good idea.
What utility customer assistance programs do you offer?
Do you offer a customer assistance program that I didn’t mention here? Or have you had success with any of the programs I described? Either way, I’d love to hear from you.
Do you need help with customer service options?
If you need help establishing a customer assistance program or have other customer service concerns, these are some of the things I can advise you on after completing a business review. Please give me a call at 919-673-4050 or email me at gary@utilityinformationpipeline.com if you would like more information.
© 2026 Gary Sanders