Identifying & Managing Risk © October 2015 EDF Energy plc. All rights Reserved1

Identifying & Managing B2B RiskSue Chapple – EDF Energy

Identifying & Managing Risk © October 2015 EDF Energy plc. All rights Reserved2

Introduction

• Who am I?

• What do I do?

• Why am I here?

Identifying & Managing Risk © October 2015 EDF Energy plc. All rights Reserved3

EDF Energy – I&C Revenue Management

• EDF Energy – UK’s largest producer of low carbon electricity

• National customer base

• Unique product – taken before payment

• Diverse range of customers

• Credit Management- over 200,000 sites- Revenue £4b

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Customer Base• Nationals

- Low % of customer base- Lower risk - higher impact - Includes high volume single site customers- Standard payment terms- Single points of contact

• Partnership- Fair % of customer base- Low risk - high impact - Includes Public & Private sector- Extended payment terms- Can be multiple points of contact

• Mid Market- High% of customer base- Higher risk – lower impact - Includes smaller & individual businesses- Standard payment terms- Multiple points of contact

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Identifying Risk

Teamwork

Customer Contact

Credit Scoring

News

Reporting

Commodities5 Identifying & Managing Risk © October 2015 EDF Energy plc. All rights Reserved

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Protection

Payment Arrangements

DCAs / Legal

Bill Frequency Diversification

Security Mitigants

DisconnectionNon Contract Rates

Credit Policy

6 Identifying & Managing Risk © October 2015 EDF Energy plc. All rights Reserved

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Additional Challenges

7 Identifying & Managing Risk © October 2015 EDF Energy plc. All rights Reserved

• Future fit

• Pleasing customers

• Managing change

reflecting the market place systems fit for purpose

Keep costs down build & maintain trust

structure embedding new systems &

processes efficiency