Tackling the credit insurance challenge
Credit insurance was one of the main risks for energy buyers in 2009 and looks set to stick around in 2010. Wayne Mitchell, head of corporate sales at npower, discusses how using an energy-trading approach can help energy suppliers and customers manage credit risk in a holistic and ongoing manner to reduce credit insurance issues
Like many European energy suppliers, npower – one of the largest energy suppliers to the UK business market – found itself facing challenges when many of its business customers suffered credit downgrades. Credit insurance was routinely withdrawn, and at one point, almost 80% of npower’s business customers faced the prospect of being refused credit insurance. This left npower needing to find a solution.
Although the credit situation has improved now, the fear is that it could re-emerge at any
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