Credit Management April 2024 issue

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CICMQ Power TO SUCCEED A credit team of distinction. THE first-ever CICMQ accreditation with Distinction has been awarded to Xoserve, a company central to Great Britain’s wholesale gas market. This is an extraordinary achievement, not only because it is the first Distinction ever awarded but also because Xoserve started the re-accreditation during 2021 and managed to do so whilst dealing with the fallout of the energy crisis where many energy suppliers had failed financially. Xoserve’s Credit Risk and Neutrality Team, led by Brendan Gill, Credit Risk & Neutrality Manager, collect in the region of £1.4bn of energy balancing charges per annum with debt mutualised to the industry therefore, they need to be vigilant and act swiftly to ensure the industry is protected as much as possible from financial loss. Reward and recognition When the team heard they had achieved the highest level for the CICMQ accreditation, they were shocked but immensely proud: “We were ‘over the moon’ to hear that Xoserve were the very first,” says Brendan. Brendan says that the CEO, Steve Brittan, and Head of Finance and Support Services, James Spicer, who attended the CICMQ presentation and internally promoted the team’s achievement, were also impressed: “Our CEO highlighted within our business that we're an invisible team,” Brendan continues, “that is critical to the business and a vital cog in the gas industry.” He believes that CICMQ strengthens the reputation of the team and the business as a whole: “The accreditation demonstrates to customers that we have robust controls and processes in place for credit management. It is formal recognition of Xoserve’s commitment to quality and continuous improvement.” When Brendan joined the Credit and Neutrality Team within Xoserve five years ago, the team began automating many labour-intensive processes by improving the use of systems such as SAP. They also started the CICMQ accreditation process, which proved to be immensely valuable in further improving the credit function: “The feedback received about the team’s performance from CICM professionals, and their input makes a meaningful difference,” says Brendan. The accreditation also helped them develop a credit road map that considers what will happen over the next five years as the industry transitions away from gas and towards hydrogen and renewable fuels, along with the potential impact on Xoserve. Under pressure In 2021, as the pandemic was ending, wholesale gas prices started rising; when Russia invaded Ukraine, they skyrocketed, and 29 energy suppliers in the UK failed financially, affecting nearly four million households. The Xoserve credit team acted swiftly. The CICMQ assessment showed how the team exceeded cash collection rates of 98 percent by the payment due date and 100 percent by the payment due date, plus two days, despite the additional workload and challenges created by the crisis. Collection processes and services were improved, whilst new market monitoring and credit controls were created in order to limit the impact of the crisis, and these scored high during the CICMQ assessment. Working closely with the regulator Ofgem and other industry parties, the team continuously monitored all gas shippers and suppliers to quickly remove defaulting companies or those with a revoked licence and worked with the appointed Suppliers of Last Resort (SoLR) who replaced the failing Supplier. Xoserve supported the newly appointed firms, calculating and ensuring the placement of energy security within two working days. The aim was to limit financial exposure and prevent the impact on customers and end consumers. Strong relationships with its credit committees and other stakeholders were instrumental in Xoserve’s success and its CICMQ Distinction. The debt of the failed energy suppliers was shared among the remaining suppliers through a mutualisation process. Meter reconciliation charges and invoices are issued for up to four years after a company defaults. Today, Xoserve continues to update insolvency practitioners with newly discovered debts, pursue claims, mutualise debt and potential dividends, and safeguard the UK gas industry. Brave | Curious | Resilient / www.cicm.com / April 2024 / PAGE 27
Page 1 and 2: CREDIT MANAGEMENT CM APRIL ISSUE 20
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Page 7 and 8: CREDIT MANAGEMENT FSB fails in atte
Page 9 and 10: CREDIT MANAGEMENT Small enterprises
Page 11 and 12: . INSOLVENCY RENTAL RIGHTS Navigati
Page 13 and 14: CREDIT MANAGEMENT QUALITY CONTROLLE
Page 15 and 16: CREDIT MANAGEMENT “The average ex
Page 17 and 18: CREDIT MANAGEMENT Brave | Curious |
Page 19 and 20: COMING MARCH 2024 OUR FULLY COMPREH
Page 21 and 22: CREDIT MANAGEMENT The Act creates a
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Page 25: BRANCH NEWS DEMYSTIFYING AI East of
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Page 34 and 35: COUNTRY FOCUS The art of neutrality
Page 36 and 37: COUNTRY FOCUS The Federal Statistic
Page 38 and 39: COUNTRY FOCUS circulation of 4.8m -
Page 40 and 41: RISING STAR RAISING A GLASS How exa
Page 42 and 43: RISING STAR DARREN WHITMARSH MCICM
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Page 46 and 47: BRANCH NEWS HITTING THE MARK The Sh
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Page 50 and 51: LOOKING FOR YOUR NEXT CAREER MOVE?
Page 52 and 53: HR MATTERS ROUNDUP FATAL HESITATION
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Page 56 and 57: Cr£ditWho? CICM Directory of Servi
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