DSC Credit Committee Presentation 19 th 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
Monthly Breakdown of Invoices Due £9,000,000.00 £8,000,000.00 £7,761,387.41 £7,000,000.00 £6,017,552.11 £6,123,398.20 £5,839,750.11 £5,980,035.90 £5,838,178.05 £6,000,000.00 £6,013,068.07 £6,008,539.48 £6,007,635.72 £6,320,114.91 £5,987,791.94 £5,359,451.68 £5,000,000.00 £4,000,000.00 £3,000,000.00 £2,000,000.00 £1,000,000.00 £0.00 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Total… The above graph is a monthly breakdown of the monthly figures that were due for collection in a month.
Monthly Breakdown of Cash Collected At Payment Due Date 99.81% 99.92% 99.57% 99.51% 98.96% 98.68% 99.43% 97.78% 96.07% 96.28% 95.45% 100% 90% 80% 73.47% % Of Cash Collected 70% 60% 50% 40% 30% 20% 10% 0% Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 PDD Collection % The above graph is a monthly breakdown of the monthly figures that were collected on payment due date.
Monthly Breakdown of Cash Collected At Payment Due Date + 3 99.95% 100.00% 99.99% 99.81% 100.00% 99.95% 99.84% 99.96% 99.92% 99.98% 99.24% 97.69% 100% 90% 80% % Of Cash Collected 70% 60% 50% 40% 30% 20% 10% 0% Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 PDD+3 Collection% The above graph is a monthly breakdown of the monthly figures that were collected on payment due date + 3 days.
Failure to Pay Notices Issued No. of Failure to Pay Notices Issued 50 No. of Failure to pay notices 40 31 26 30 22 18 18 20 14 14 12 issued 11 10 9 7 10 0 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 Value of Failure to Pay Notices Issued £ 1,596,948.04 £258,360.15 £278,700.00 Value of Failure to pay notices £258,800.00 £228,124.12 £238,900.00 £217,091.42 £219,000.00 £199,100.00 £171,962.82 £179,200.00 £159,300.00 £139,400.00 £119,500.00 issued £99,600.00 £65,819.65 £79,700.00 £41,281.07 £59,800.00 £34,224.57 £25,208.96 £11,799.01 £39,900.00 £27,897.12 £9,794.44 £20,000.00 £100.00 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
Exposure DSC / UUA / Third Party Customers Secured - Exposure underwritten by a third party ie. LOC/PCG 2% Unsecured - 0% 1% Supported by a Published Credit Rating Unsecured - Exposure 97% less than £150, not supported by a Published Credit Rating Unsecured - Payments Upfront
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 Management Team – November 18 Energy Settlements and Credit Manager Mark Cockayne Neutrality Finance Credit Risk Lead Credit Risk Lead Neutrality Accountant Loraine O’Shaughnessy Sandra Dworkin Rehana Begum EB Security & Cash EB Credit Controller CDSP Neutrality Finance A/R CDSP & Security Process Call Process Credit & Risk Assistant Credit & Risk Credit Risk Credit Risk Credit Risk Co-ordinator Accountant Co-Ordinator Co-Ordinator Co-ordinator Co-Ordinator Sue Nunnington/ Sheila Chauhan Monali Kale TBC Sharon McBride Therese Siene Nichola Dowding CDSP Credit & Risk EB Credit & Risk Credit & Risk Business Process Business Process Business Process Administrator Administrator Administrator Farhan Haq Liz Bennett Vacancy
Credit & Risk Management Team – April 19 Mark Cockayne Business Process Manager Support EBCC Palminder Sandhu Neutrality Finance Credit Risk Lead (CDSP & EB) Neutrality Accountant Brendan Gill Rehana Begun EB Security & Cash EB Credit Controller Xoserve DSC Credit Controller Neutrality Call Process & Security Process Credit & Risk Credit Risk Finance Assistant Credit Risk Credit Risk Co-Ordinator Co-Ordinator Jehanzeb Chohan Co-ordinator Co-Ordinator Monali Kale Nicola Dowding Sharon McBride Therese Siene EB Credit & Risk Credit & Risk Credit & Risk Business Business Process Business Process Process Administrator Administrator Administrator Sheila Chauhan Liz Bennett Farhan Haq
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
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