2023 report - The consumer

The consumer Ombudsman for the ENGIE Group 2023 report

PROPOSING RECOMMENDATIONS

Recommendations

related to the crisis

The various cases encountered due to the price crisis have allowed us to identify

directions that we have grouped into four main recommendations.

Contract

Recommendation No. 1

Consumer energy suppliers

Preserve the tarif f study conducted at the

customer’s move-in to demonstrate the quality

of professional advice and justify the amount

of the estimated monthly payment.

Observation

In some mediation cases following a contract subscription, the sup-

plier, during the energy price crisis, underestimated the increase in

monthly payments. However, this increase serves as a very concrete

alert for customers, helping them better understand the actual

rise in tarif fs indicated in the CPVs. The Mediation requested from

ENGIE, for these cases, the results of the tarif f study conducted

by the supplier to def ine the estimated consumption, which, mul-

tiplied by the new tarif fs and divided by 11 months, demonstrated

the correct sizing of the monthly payments. The supplier had not

retained it for the mediation cases concerned.

Recommendation

If underestimating monthly payments leads to a lack of informed

consent upon subscription, even with the provision of new tarif f

schedules, the Ombudsman holds the supplier responsible. This

responsibility hinges on the signif icant discrepancy between the

proposed and actual monthly payments in light of the new prices.

While applicants had access to updated tarif f schedules, a substan-

tial underestimation of monthly payments might have af fected their

decision-making. Hence, the Ombudsman suggests compensation

ranging from 50% to 100% of the dif ference between the paid

invoice and what would have been paid with the lowest market

rate at the time of contract signing.

Suppliers need to furnish comprehensive information to prospective

customers during the precontractual phase This includes updated

tarif f schedules price f luctuations and consistent monthly data

It is crucial for suppliers to retain records of studies conducted at

the time of contract subscription to demonstrate the thoroughness

of the information provided

Recommendation No. 2

Consumer energy suppliers

Align the payment schedule for monthly

instalments with contractual periods rather

than the rhythm of adjustment invoices.

Especially, send the new payment schedule

for the new instalments at the time of contract

renewal.

Observation

The Mediation notes that the adjustment of the instalment plan is

not carried out when sending information letters regarding contract

renewals. It also observes that when the new contract with updated

prices commences, the instalments from the old contract persist

until the new adjustment invoice is issued. This can give customers

the impression that prices have not changed, especially in the

context of 2022, when there was talk of a tarif f shield protecting

certain customers.

This is a strong counter-signal suggesting that the tarif f has not

changed, which was true before 2022, during periods when prices

only increased slightly. Typically, the adjustment of instalments

occurs at the time of the annual regularization invoice. In the worst-

case scenario, updating instalments may not occur until one year

after the renewal of the new contract. Aware of this situation, ENGIE

had implemented customer information via phone or SMS to inform

them closer to the contract renewal. However, certain situations

encountered could lead to a lack of informed consent at the time

of contract renewal. Particularly when adjustment invoices were

issued between the date of sending the contract renewal informa-

tion letter and the ef fective start date of the new contract.

Recommendation

In a context where customers in 2022 believed they were pro

tected by the tarif f shield implemented by the government the

failure to update instalments could suggest a continuity of pricing

The instalment level serves as a tangible signal of price for many

customers in managing their budget even if contractually the

supplier provided the new tarif f schedules in the contract renewal

proposal letters

The Ombudsman recommends that suppliers include the instal

ment plan with the renewal letter rather than attaching it to the

annual regularization invoice This process will ensure informed

consent from the customer who will have a better understanding

of what they are committing to and how they can compare it with

other of fers

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for 2024