EDF Energy, one of the UK’s largest energy companies and the largest producer of low-carbon electricity, is using Tinubu Square’s Risk Analyst service to carry out credit risk assessments which are helping the company to win deals where speed of response is critical
EDF Energy produces around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. Today, the company employs over 15,000 people across the UK - from Torness in Scotland right down to Exeter in Southern England.
Adrian Wijay, Mass Market Credit Risk Manager at EDF Energy explained the challenge that the company faced: “In the B2B market, we quote on hundreds of thousands of counterparties. The associated credit risk assessments vary in detail dependent on deal sze. SME size deals primarily make use of standard bureau auto scores, whilst the largest deals make use of public credit ratings and in depth internal investigations. The middle ground often presents the challenge; where lack of easily attainable information and significant exposure exist.”
Tinubu Square’s Risk Analyst service combines quick and comprehensive credit risk assessments and reports with access to a team of experienced risk analysts. The service can deliver information on any buyer in any country, and supplement this with on-call expert opinions to match a client’s own risk parameters.
Having assessed the service offered by Tinubu Square, and after deciding that it could be a useful resource to help with specific requirements with a view to providing a trusted additional view, EDF Energy requested its first risk analysis report.
“The first report came back and we immediately noticed the degree of detail, and the way that the language was pitched at the right level,” commented Adrian Wijay. “It provided us with a lot more than a standard credit check, which provides a useful tool for my team.”
EDF Energy primarily uses the Tinubu Risk Analyst service to provide it with a level of detail that it would find hard to secure elsewhere. The company appreciates the format of the reports which can be passed on and utilized by the internal credit management team, and the explanatory style which clarifies all the key issues.
“We know what depth the reports will go into, which supports our internal resources and the intelligence included saves us a great deal of time and effort, so they are operationally very useful,” continued Wijay. “What we also like is the option to talk to Tinubu’s analysts; this gives us additional context when we are assessing a credit request, because the decision making is not always straightforward.”
EDF Energy also benefits from the account management that it receives from Tinubu, and believes the access to expertise, on-hand second opinions and a willingness to go the extra mile makes the Risk Analyst service good value for money.
A recent deal with a global manufacturer was ably supported by Tinubu’s service. Quick responses on potential group guarantors allowed EDF Energy to win this large supply contract, where the risk / return decision was highly complex.
Since using the Tinubu service, Wijay says that the service has helped to win deals where speed of response is critical.
“As a Credit Risk team, we are here to support our commercial team in securing business in line with our risk appetite” Wijay said. “To continue to do this, in what is an increasingly competitive environment, we are likely to need more help from Tinubu because their analysis is useful, particularly in less straightforward cases and where we are on a short deadline. If we see a contradiction between standard credit checks or with own internal detailed checks, we know we can go straight to Tinubu for a valued additional view.”