Meter readers turn debt collectors to protect jobs

Jun 25 2008 by Peter McCusker, The Journal

A LEGISLATIVE threat to a North East meter-reading company’s market has seen it launch a new venture which it says will help raise turnover to £90m and create over 100 additional jobs.

AccuRead, which turned over £72m last year, currently employs 300 staff at its Killingworth head office, as well as 2,500 meter reading staff nationwide.

In recent weeks it has launched a new branch called UK Debt and Legal Services – a debt management company – on the back of Government deliberations on legislation to introduce Smart Meters.

This launch comes as the company is preparing to relocate to new premises at Cobalt Business Park, North Tyneside, in November.

Joan Walmsley, AccuRead’s director of support services, said: “We have set up a debt collection business based here in Newcastle. With the advent of Smart Metering we can see our core business reducing over time. Many utility companies have debt collection problems and we are also targeting credit card and mobile phone companies as potential clients for this service.

“So far we have trained 150 of our staff to also be debt collectors. We asked for volunteers and they have been trained up to now do both jobs.

“The progress of the business over the coming years depends a lot upon what, if any, legislation is to be brought in with regards to Smart Metering.

“However, over the next two years I foresee us employing around 450 people at our new office and around 3,000 meter readers/debt collectors across the UK. This is an important new departure for Accuread.

“We do not want to be totally reliant on the utility sector for our business.”

Accuread, which is a wholly owned subsidiary of the global GSL Utility Services group, recently released its accounts for the year end December 31, 2007.

It showed its pre-tax profits soared by 44% from £7.3m to £10.6m on the back of an increase in turnover from £69.2m to £72.2m.

AccuRead will take over three floors of the new office at Cobalt – a total of 30,000sqft – with an option to move into the fourth floor if things progress as planned.

Ms Walmsley added: “The launch of the new company is a major step for us, so it is a great time to be moving to a new HQ.”

AccuRead was founded in the 1960s with 900 former British Gas staff.

Its customers include Scottish Power, E.on, British Gas, National Grid and edf Energy.

SMART TECHNOLOGY CHANGES BILLS

SMART Meters enable the real-time transmission of energy readings to utility companies so an individual customer’s usage can be accurately monitored without the need for manual meter readings.

Earlier this year, the government announced all large and medium-sized businesses would have to install Smart Meters, with further consultation for small businesses and domestic users.

This followed the publication of its Energy White Paper in May last year. Energy minister Malcolm Wicks said: “It is vital that we make best use of this emerging technology that will not only help cut our energy use but reduce our bills.”

The Energy Retail Association and Utility Week recently launched their Look Smart campaign.

This calls on the Government to concentrate ensure smart meters are delivered at low cost to all gas and electricity consumers within 10 years.