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Energy Consumption, Customer Segmentation & Collection Risk Analysis

Case Study — Decision-Focused Energy Retail Analytics

Customer Segment Distribution

Project Snapshot

  • Domain: Energy Retail Analytics
  • Focus: Customer Segmentation & Collection Risk
  • Data Size: ~2.7M records
  • Tools: Python, Pandas, Seaborn
  • Output: Decision-oriented operational insights

Project Overview

This project analyzes energy consumption behavior, customer segmentation, and payment collection risk to generate decision-support insights for operational teams.

The analysis enables organizations to:

  • Understand district-level consumption differences
  • Identify high-value and high-risk customer segments
  • Prioritize collection strategies using measurable financial impact
  • Support operational planning through data-driven insights

The project is structured as a three-notebook analytical pipeline: Data Exploration → Visualization → Decision Storytelling


Business Problem

Energy retail companies face several operational challenges:

  • Consumption patterns and customer structures differ significantly across districts
  • Applying the same collection strategy to all customers reduces operational efficiency
  • The combination of high consumption and delayed payment represents the highest financial risk

This project provides a data-driven answer to:

Which customer segment and which district require which operational action?


Analytical Approach

The analytical workflow consists of three complementary layers:

1 — District Consumption Profiling

  • District-level consumption intensity and customer density analysis
  • Customer class distribution comparison
  • Seasonality and extreme consumption behavior analysis
  • District profile scorecard creation

2 — Customer Segmentation

  • Customers segmented based on consumption level and payment behavior
  • Segment size and characteristics analyzed
  • “High Consumption + Late Payment” segment clearly isolated

3 — Collection Risk Analysis

  • Identification of drivers influencing payment behavior
  • Risk concentration analysis by district, account class, and consumption segment
  • Evaluation of payment channels together with collection risk

Notebook Workflow

Notebook 01 — Data Exploration & Preparation

Focus

  • Data structure validation (.info, .describe, .head)
  • Customer count comparison by district
  • Dataset merging and record validation
  • Missing, negative, and extreme value detection
  • Consumption statistics by account class
  • Export of cleaned datasets for downstream analysis

Outputs

  • Cleaned datasets saved as intermediate files (pickle format)

Notebook 02 — Comparative Visualization

Focus

  • District-level account class distributions
  • Seasonal consumption trends
  • Collection channel and district distributions
  • On-time vs late payment ratios
  • Consumption distribution and outlier visualization

Outputs

  • Analytical charts supporting comparative insights

Notebook 03 — Decision Storytelling & Insights

Focus

  • District comparison analysis and drivers
  • Customer segmentation and behavioral interpretation
  • Collection risk identification
  • Business-oriented action recommendations

Structure Problem Definition → Hypotheses → Analysis → Findings → Business Recommendations


Key Insights

  • Consumption and customer profiles vary significantly across districts
  • The High Consumption + Late Payment segment represents the most critical financial risk
  • Customer class and profile strongly influence payment behavior
  • Segment-based collection strategies significantly improve operational efficiency

Decision Impact

This analysis enables operational teams to:

  • Identify high-risk customer segments early
  • Prioritize collection and communication resources based on financial impact
  • Design segment-specific payment incentives (auto-pay, installment plans, reminders)
  • Support district-level operational planning with data-driven evidence

Example Action Maps

  • High Consumption + Late Payment: early warning alerts, auto-pay incentives, structured payment plans
  • High Consumption + On-Time Payment: loyalty programs, auto-pay adoption expansion
  • Low/Medium Consumption + Late Payment: low-cost reminder systems, online/bank payment channel promotion

Repository Structure

case_study_02_energy-consumption-customer-risk-analytics/
├── README.md
├── data/
│   └── elektrik_veri_hashed.xlsx
├── notebooks/
│   ├── notebook_01_data_exploration.ipynb
│   ├── notebook_02_visualization.ipynb
│   └── notebook_03_decision_storytelling.ipynb
├── outputs/
│   └── figures/
│       ├── 01_district_account_structure.png
│       ├── 02_monthly_consumption_trend.png
│       ├── 03_payment_status_distribution.png
│       ├── 04_district_account_class_consumption.png
│       ├── 05_district_scorecard.png
│       ├── 06_customer_segment_distribution.png
│       ├── 07_segment_avg_consumption.png
│       ├── 08_payment_behavior_by_segment.png
│       ├── 09_consumption_by_payment_boxplot.png
│       ├── 10_bank_collection_rate_by_district.png
│       └── 11_late_payment_rate_by_district_segment.png
└── requirements.txt

Data Privacy

The original dataset contains sensitive operational information and is not publicly shared.
All customer identifiers are anonymized/hashed, and therefore the dataset included in this repository is either anonymized or excluded for privacy reasons.


How to Run

1. Install Required Libraries

pip install -r requirements.txt

2. Run Notebooks Sequentially

  1. notebook_01_data_exploration.ipynb - Performs data validation and cleaning - Exports intermediate cleaned datasets

  2. notebook_02_visualization.ipynb

    • Uses cleaned datasets to produce comparative visualizations
  3. notebook_03_decision_storytelling.ipynb

    • Generates decision-oriented analytical storytelling and operational recommendations

Tools

  • Python: pandas, numpy
  • Visualization: matplotlib, seaborn
  • Environment: Jupyter Notebook

Business Value

This project demonstrates how energy retail companies can identify high-risk customer segments and prioritize collection strategies through data-driven segmentation and consumption analytics.
The insights support more efficient operational planning and measurable financial impact.


Final Insight

The project illustrates how consumption analytics, customer segmentation, and payment behavior modeling can be integrated into a scalable decision-support framework.
Such frameworks can be operationalized through automated analytical pipelines and decision dashboards to support real-world collection prioritization strategies.

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Energy consumption analytics, customer segmentation, and collection risk analysis for decision-focused energy retail operations

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