Tender: Provision of Water Debt Collection Services Framework (Post‑Litigation, Closed Account, Trace & Collect)

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Northumbrian Water is seeking a supplier for outsourced debt collection services for unrecovered closed account and post‑litigated water debts under a multi‑lot framework commencing early 2027. The authority intends to outsource, on a commission basis, circa £10 million per annum of unrecovered closed account water debt requiring collect or trace-and-collect solutions and circa £4.5 million per annum of post‑litigated (County Court Judgment) water debt, offering an initial three‑year contract (1 February 2027–31 January 2030) with two further three‑year extension options. There are four lots (Post‑litigation CCJ; Closed Account (Prime); Trace and Collect 1st placement; Trace and Collect 2nd placement), with two vendors to be appointed per lot and annual batch volumes of approximately 6,000 CCJ, 13,500 closed account prime, 9,000 trace-and-collect first placement and 22,000 trace-and-collect second placement accounts. Interested processors must demonstrate FCA authorisation, bulk utility debt experience, knowledge of the water industry and Ofwat Paying Fair guidelines, compliance with GDPR 2018 via a Data Processing Agreement and Data Journey, ability to meet Northumbrian Water's Risk Register and service requirements (including PCI-compliant card payments, a range of payment methods, back-office instalment support, vulnerability policies, adherence to the Debt Respite Scheme, real-time client visibility, site visits/audits and clear weekly/monthly invoicing). Accounts are proposed to begin release in early 2027 and two debt collection agencies will be appointed per segment with initial 50/50 splitting and performance-based adjustment options.