The Ombudsman’s recommendation to align the payment schedule for monthly instalments with contractual periods

By ENGIE - 09 July 2024 - 16:10

Theme: Contract

Entity concerned: Professional Clients Department

Recommendation: 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.

Recommendation status : currently being implemented

 

The various cases we have encountered as a result of the price crisis have enabled us to identify guidelines that we have grouped together in generic recommendations.

 

Generic 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 tariff shield protecting certain customers. This is a strong counter-signal.
Aware of this situation, ENGIE had implemented customer information via phone or SMS.
However, certain situations encountered could lead to a lack of informed consent at the time of contract renewal.

 

Generic solution:

The instalment level serves as a tangible signal of price for many customers in managing their budget, even if, contractually, the retailer provided the new tariff schedules in the contract renewal proposal letters. The Ombudsman recommends that retailers include the instalment plan with the renewal letter rather than attaching it to the annual regularisation 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 offers.