Provision of Debt Collection Services

Descriptions

Relating to the supply/provision of Debt Collection Services at 1st,2nd,3rd & 4th placement collect & 1st, 2nd & 3rd placement trace and collect services.

Background

Debt Recovery Approach

Upon entering our debt recovery process, customers receive a series of written communications, telephone calls, and SMS notifications. Following these steps, our decision engine determines the appropriate course of action - either initiating legal proceedings or engaging a debt collection specialist. This market engagement pertains to the latter approach.

Anglian Water currently partners with several debt collection agencies to support the recovery of outstanding balances from customers at domestic properties. Customers are mainly homeowners, landlords and tenants with a smaller proportion comprising commercial customers.

Accounts presently follow a tiered placement strategy across first, second and third placements. This applies to live and vacated collect accounts and accounts that require tracing before collection. Where our internal litigation efforts, including those that have already been taken to court, have been exhausted, this will also be referred to our external agencies. At present third-placement accounts are managed exclusively through a doorstep visit strategy.

While our current contracts are scheduled to conclude in July 2027, we acknowledge that initiating the market engagement process at this stage may appear premature. However, we anticipate that significant changes will be required to our existing debt management systems. To ensure a smooth transition and allow sufficient time for implementation for both our suppliers and Anglian Water, we have incorporated a six-month mobilisation period following the award of the new contracts. This preparatory phase is intended to support system enhancements, supplier onboarding, and alignment with revised operational requirements.

It is our intention to go to market early 2026 following conclusion of the Market Engagement exercise.

Please refer to both the Debt Collection Questionnaire and the Market Engagement Info Pack attached to the scanmarket event.