Grey system theory based default risk model of power clients

To be clear of the default probability of electricity fees from power clients in advance and change the postmortem management mode to the preventive management mode, it would decrease the default risk greatly in the process of electricity sales in the utility. Based on the analysis of complicated reasons of default, the main elements whose effect on default are known, the risk model involved with feature variables of default is constructed with the theory of grey system predication. Next, using a grey cluster algorithm, we classified clients into different categories according to the prediction of theirs feature variables, which would be valuable reference for power company to subdivide the consumption market and make out distinguishing credit management strategy.