2023 report - The consumer

The consumer Ombudsman for the ENGIE Group 2023 report

PROPOSING RECOMMENDATIONS 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

Recommendations beyond the crisis

The Consumer Ombudsman for the ENGIE Group makes

several recommendations based on the requests received in 2023.

Energy saving bonus

Recommendation No 1

DGPCEE

Ensure not to exceed the

framework of regulatory

requirements in the payment

of Energy Savings Bonuses

and to remain compliant with

the Consumer Code

Observation

The process implemented by ENGIE for the payment of

an Energy Savings Bonus ultimately allows it to acquire

Energy Efficiency Certificates EEC from the State

and thus fulf il its environmental obligations It is based

partly on a contractual basis and partly on regulatory

requirements A scenario is missing from the process

The RGE qualif ication of the company performing the

work is requested at the date of work commitment

What happens to this request in the event of judicial

liquidation while the company has already started the

work and another company continues it This case is

not stipulated in the regulatory requirements or in the

contractual requirements referred to by ENGIE to with

hold the bonus

Recommendation

In the spirit of the Consumer Code

when there are multiple possible

interpretations the doubt benefits

the consumer The interpretation

made by the consumer should also

be considered

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

Recommendation No. 3

Consumer energy suppliers

Eliminate renewal letters that do not clearly

indicate that prices will signif icantly increase

(upward) to encourage the consumer to

compare their new price with the old one,

and thus be able to make an informed choice.

Indicate the old price and the new price on the

contract renewal letter.

Observation

The Ombudsman observes that at the onset of the crisis, suppliers

could send overly optimistic renewal letters stating, “Everything

is automatic! You don’t have to do anything,” even as prices were

sharply increasing. While such letters may have been acceptable

during stable price periods, they are no longer suitable during

times of high price volatility.

Recommendation

In situations where there’s an increase of over 10%, it is essential

to avoid overly reassuring renewal letters and instead provide

consumers with comprehensive explanations of the actual tarif f

hikes. Therefore, simply reminding customers of the old price in

the renewal letter to facilitate comparison with the new one would

be a highly benef icial improvement.

Recommendation No. 4

Consumer energy suppliers

Indicate the kWh prices in cents rather than euros

in contractual documents.

Observation

In renewal letters and contracts, the supplier indicates kWh prices

in euros (excluding and including tax). In renewal letters and con-

tracts, suppliers indicate kWh prices in euros (before and after

tax). For the Ombudsman, using the EURO unit complicates the

clear understanding of energy price increases. While a change

from, for example, 0.05 euros to 0.2 euros may seem small at f irst

glance, when expressed as 5 to 20 cents, the increase becomes

much more apparent and helps consumers better understand the

level of variation.

Recommendation

The Ombudsman recommends displaying kWh prices in cents

rather than euros in contractual documents to make tarif fs and

their changes clearer for customers.

Contract

Discover all the

details of our

recommendations

for 2024