19 th November 2018 Agenda 1. Introduction and Status Review - - PowerPoint PPT Presentation

DSC Credit Committee Presentation 19th November 2018

Agenda

• 1. Introduction and Status Review

1.1. Apologies for absence 1.2. Note of Alternates 1.3. Review of Minutes (22 October 2018) 1.4. Review of Outstanding Actions

• 2. Approve changes to the DSC Credit Rules / DSC Security
• 3. CDSP Operational Report

3.1. CDSP cash collection update 3.2. CDSP security management update 3.3. Breach of a DSC Credit Limit, late or non-payment of CDSP Charges 3.4. Further Actions following failure notices

• 4. Review of last 6 months
• 5. Plan for next 6 months
• 6. Update on Transform Us
• 7. Any Other Business
• 8. Diary Planning

DSC Credit Committee Operational Stats October 2018

The above graph is a monthly breakdown of the monthly figures that were due for collection in a month.

£6,007,635.72 £5,838,178.05 £6,008,539.48 £5,839,750.11 £6,320,114.91 £6,017,552.11 £5,359,451.68 £7,761,387.41 £6,123,398.20 £6,013,068.07 £5,987,791.94 £5,980,035.90 £0.00 £1,000,000.00 £2,000,000.00 £3,000,000.00 £4,000,000.00 £5,000,000.00 £6,000,000.00 £7,000,000.00 £8,000,000.00 £9,000,000.00 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

Monthly Breakdown of Invoices Due

Total…

The above graph is a monthly breakdown of the monthly figures that were collected on payment due date.

99.43% 99.57% 99.51% 95.45% 98.96% 73.47% 96.07% 97.78% 96.28% 99.81% 99.92% 98.68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 % Of Cash Collected

Monthly Breakdown of Cash Collected At Payment Due Date

PDD Collection %

The above graph is a monthly breakdown of the monthly figures that were collected on payment due date + 3 days.

99.95% 100.00% 99.99% 99.81% 100.00% 97.69% 99.95% 99.24% 99.84% 99.96% 99.92% 99.98% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 % Of Cash Collected

Monthly Breakdown of Cash Collected At Payment Due Date + 3

PDD+3 Collection%

Failure to Pay Notices Issued

14 11 9 26 18 22 18 31 10 12 7 14 10 20 30 40 50 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18

• No. of Failure to pay notices

issued

• No. of Failure to Pay Notices Issued
• No. of Failure to Pay Notices

£34,224.57 £25,208.96 £11,799.01 £258,360.15 £41,281.07 £217,091.42 £171,962.82 £228,124.12 £27,897.12 £9,794.44 £65,819.65 £100.00 £20,000.00 £39,900.00 £59,800.00 £79,700.00 £99,600.00 £119,500.00 £139,400.00 £159,300.00 £179,200.00 £199,100.00 £219,000.00 £238,900.00 £258,800.00 £278,700.00 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Value of Failure to pay notices issued

Value of Failure to Pay Notices Issued

Value of Failure to Pay Notices

£1,596,948.04

2% 97% 1% 0%

DSC / UUA / Third Party Customers

Secured - Exposure underwritten by a third party ie. LOC/PCG Unsecured - Supported by a Published Credit Rating Unsecured - Exposure less than £150, not supported by a Published Credit Rating Unsecured - Payments Upfront

Exposure

6 Month Operational Review

April 2018 – October 2018

6 Month Operational Review

• Cash Collection figures have remained consistent over the last 6 months.
• We continue to escalate all late payments above £5 to the DSC Credit Committee if

they have been overdue for more than 3 days.

• Worked with the committee in respect of customers whose Published Rating has

been reduced. Following agreement with the committee we have:

• Simplified the accrual process
• Used the Maximum Unsecured Credit Limit provided by a Published Rating Agency

rather than anticipated Maximum Indebtedness

• Increased the monthly allowable exposure from £150 to £500 for customers without

a Published Rating

• Agreed to streamline cash collection processes
• Xoserve have implemented a new SAP system with no issues to customers
• 2 New members have joined the Credit Risk Team
• The Credit Risk Team have supported 2 Customer Discovery Days.

Focus for next 6 months

October 2018 – April 2019

Focus for next 6 months - Team

• Team re-organisation – Due to OLS 3 members of the Credit Risk team will

be leaving by the end of March 2019

• Mark Cockayne will be passing over responsibility to Palminder Sandhu to

Manage the Credit Risk Team over the next few months.

• Brendan Gill joins the Credit Risk team from today to replace Loraine

O’Shaughnessy and Sandra Dworkin who will be leaving at the end of March 2019.

• A full review of the Credit Risk Team is under review to look at process

improvements, and where synergies of roles can be merged.

• CICM Training across the team will continue
• Continue to Support Customer Discovery days

Credit Risk Lead Loraine O’Shaughnessy Credit Risk Lead Sandra Dworkin Neutrality Finance Neutrality Accountant Rehana Begum Neutrality Finance Assistant Accountant Sheila Chauhan A/R Credit Risk Co-Ordinator TBC EB Security & Cash Call Process Credit Risk Co-ordinator Sharon McBride EB Credit Controller & Security Process Credit Risk Co-Ordinator Therese Siene Credit & Risk Business Process Administrator Farhan Haq EB Credit & Risk Business Process Administrator Liz Bennett Energy Settlements and Credit Manager Mark Cockayne CDSP Credit & Risk Co-Ordinator Monali Kale CDSP Credit & Risk Business Process Administrator Vacancy CDSP Credit & Risk Co-ordinator Sue Nunnington/ Nichola Dowding

Credit & Risk Management Team – November 18

Business Process Manager Palminder Sandhu Credit Risk Lead (CDSP & EB) Brendan Gill Neutrality Finance Neutrality Accountant Rehana Begun Credit & Risk Business Process Administrator Sheila Chauhan Neutrality Finance Assistant Jehanzeb Chohan EB Security & Cash Call Process Credit Risk Co-ordinator Sharon McBride EB Credit Controller & Security Process Credit Risk Co-Ordinator Therese Siene Credit & Risk Business Process Administrator Farhan Haq EB Credit & Risk Business Process Administrator Liz Bennett Xoserve DSC Credit & Risk Co-Ordinator Monali Kale Credit Controller Credit Risk Co-Ordinator Nicola Dowding

Credit & Risk Management Team – April 19

Mark Cockayne Support EBCC

Focus for next 6 months - Operational

• Embed the new SAP system, looking at process improvements
• Streamline cash collection processes
• Review of DSC Credit Policy
• Update of DSC Credit Rules
• DSC Credit Committee Operational Statistics – Review and update

reporting mechanism

• Continue to embed Xoserve’s Strategy House

A.O.B

Diary Planning