2023 report - The consumer

The consumer Ombudsman for the ENGIE Group 2023 report

PROPOSING RECOMMENDATIONS PROPOSING RECOMMENDATIONS

Choosing

the right energy supply of fer

During the 2022 energy crisis, prices soared, reaching 4 to 6 times

the levels of previous years. Two client situations arose: moving into

a new home or premises requiring a new energy contract (electricity or gas),

or renewing an existing energy contract that was coming to an end.

Mediation process

Recommendation No. 3

Consumer energy suppliers

Improve the complaints handling process for

energy suppliers to prevent the Ombudsman from

gradually becoming a complaint handling service.

Observation

The Mediation handles a signif icant number of requests under

consumer mediation that, in practice, are complaints. However, it

has proposed expanding its eligibility criteria to provide factual

evidence of the proper functioning of ENGIE subsidiaries’ complaint

processes. In 2023, out of the 782 mediation cases received for

individuals, 30% originated from cases with no response within two

months from Customer or Consumer Services, which represents

the workload of two people in the Mediation team.

This rate has hardly decreased in 2023 (1/3 in 2022) even though

cases reaching mediation due to back-and-forth with customer

service were redirected to level 2.

Recommendation

Energy suppliers should streamline their complaints handling

procedures to prevent requests arising from unsubstantiated

complaints or failure to respond to written complaints within two

months. For instance, they could proactively of fer complainants the

option to escalate their concerns to the consumer service experts

for resolution.

Notably the consumer service at ENGIE resolves over 85 of pre

mature requests that are redirected to the Ombudsman aligning

with current regulations and the spirit of the European directive

Recommendation No. 4

ENGIE Home Services (EHS)

Agree to implement a “Method Agreement”

mediation solution that outlines the parties’

future responsibilities.

Observation

In certain cases encountered, despite EHS acknowledging respon-

sibility from the outset, the mediation process lasted for several

months. It would have been resolved in a matter of days if EHS

had promptly addressed the compensation amount following its

acknowledgment of responsibility. As a reminder, the legal guar-

antee obliges the seller to respond to hidden defects:

• without relying on a complex and slow compensation mechanism

by involving its insurer,

• without transferring to the buyer (claimant) the responsibilities

inherent in its liability (to repair or refund).

The implementation of a coverage process (liability insurance)

by EHS resulted in the neutralization of the mediation process.

While this insurance process is legitimate (within EHS’s authority),

it cannot condition the assessment of the parties’ responsibilities

in mediation or lead to the suspension of the mediation process.

Recommendation

In such cases, EHS could agree to a “method agreement” solu-

tion where the parties outline their responsibilities and def ine the

conditions for future repairs nature of work expert assessment

of compensation and presentation of evidence

The Ombudsman had proposed this solution from the outset and

ultimately it was agreed upon for future repairs EHS committed to

covering the cost of corrective work upon presentation of evidence

This method agreement should be systematically implemented

by EHS in such situations

Here are some key

points derived from the

mediations conducted:

• Comparison with previous contracts:

Begin by comparing the proposed price

with the price of your previous contract.

Your customer advisor should provide

you with this information. Today, ENGIE

systematically indicates the old and

new prices in renewal letters, thanks to

the Ombudsman’s recommendations.

Always compare price of fers from sup-

pliers using offer comparison tools,

such the one provided by the National

Energy Ombudsman.

• If you decide to subscribe to a f ixed-

price of fer for several years, remember

that as a consumer, you can change it at

any time. The supplier is obliged to pro-

vide you with the f ixed energy price for

the entire contract duration. Consum-

ers are not bound by any commitment

regarding the duration.

• Stay regularly informed about energy

market prices: When prices decrease,

it may be advantageous to change your

of fer, even while staying with the same

supplier to obtain a lower tariff This

monitoring is especially important when

market prices vary significantly as in

2022 or the f irst half of 2023

• Have your energy advisor conduct a

tarif f study to determine your expected

consumption. This study considers

factors such as previous occupants’

consumption habits, heating systems,

appliance usage, and insulation quality.

The simulations provided by your supplier

should be saved for in-depth analysis in

case of disputes. In one of its previous

recommendations, the Ombudsman

requested that ENGIE retain these

simulations so that they could be bet-

ter analysed in the event of a dispute.

• The amount of the estimated consumption

provided by the simulation, multiplied by

the inclusive tax price of your contract and

divided by 11, will give you the estimated

amount of your monthly instalment,

with the 12

month corresponding to the

annual adjustment invoice based on your

actual consumption.

• If the contracts are at variable prices,

indexed for example to the regulated

tarif f, a reference scale, or the energy

market price, be cautious in the event

of signif icant price f luctuations.

Regarding the renewal of a contract,

ENGIE must meet legal and regulatory obligations

by strictly applying the specif ic procedure

outlined below:

When your initial contract term comes to an end, your supplier must take

the initiative to submit a proposed modif ication regarding prices. This

proposal will be communicated to you by post or email, according to your

preference. To do so, they must provide you with a proposed modif ication

at least one month before the envisaged application date, informing

you that you have the option to terminate the contract without penalty

within a maximum of three months from its receipt

This corresponds to the procedure outlined in the Law as per article L 224

10 of the Consumer Code Any draft amendment envisaged by the supplier to

the contractual terms and conditions shall be communicated to the consumer

by post or at the consumers request by electronic means at least one month

before the envisaged date of application In the case of electricity or gas any

plans to amend the contractual provisions relating to the arrangements for

determining the price of supply as well as the reasons preconditions and scope

of the amendment shall be communicated in a transparent and comprehensible

manner This communication shall be accompanied by information informing

the consumer that he may terminate the contract without penalty within a

maximum period of three months from the date of receipt

Billing and payment

Recommendation No. 2

Consumer Division (DGP)

Accompany consumption

adjustments during the billing

cycle with detailed information

and explain complex accounting

operations.

Observation

The issue of insuf f icient prior information

regarding consumption adjustments made

during the billing cycle has been encoun-

tered repeatedly. Similarly, there have been

instances where no explanatory letter

was included with the bill during complex

accounting operations. The Ombudsman

had previously made recommendations to

the supplier on this matter.

Recommendation

The Ombudsman recommends that the

supplier provide customers with a detailed

invoice accompanied by a written or oral

explanation to ensure they understand the

reason for the bill sent during the billing

cycle.

In the case of consumption adjustments, the

written elements provided to the supplier

by the distributor, describing the action

taken, can serve as the expected expla-

nation.

Discover all the

details of our

recommendations

for 2024