With some six million customers, EnBW is the third largest energy supplier in Germany. The company has experienced significant growth over the last few years and has seen the number of its energy trading counterparties increase from 100 to 400, with increasing numbers in Eastern Europe. At the same time, the credit risk department took on the role of a central rating agency within EnBW to provide scoring and credit assessments for all of the organisation's counterparties, not just trading. It also has a mandate to provide credit ratings for the customers of its grid operations.
"Given the increased scope of the credit risk department's functions, we required a more advanced credit scoring system to automate and streamline what was previously a manual credit scoring process," said Ronny Bierhals, head of credit at EnBW. "In addition we wanted to stress test our internal ratings models to understand the impact across our portfolio of different weightings and scoring methodologies. This was simply not possible in our existing manual system, energycredit Scoring will enable us to achieve this, and represents the first step towards the implementation of a complete credit risk management platform."
energycredit Scoring is available as a module of Financial Objects' award-winning web-based energycredit solution, which is already being used successfully by StatoilHydro and RWE among others - all leading tier one utilities in Europe. The solution comprises a counterparty database for credit scoring and automates all related workflow and reporting processes, such as the credit approval procedure.
Ian Sloggett, EMEA sales director at Financial Objects' Energy division, commented: "We are delighted to be working with EnBW and to further expand our market share in Germany and Europe as a whole. Crucially energycredit will allow EnBW to scale its business without extending its existing headcount."