E.ON UK PLC CORPORATE RESPONSIBILITY REPORTING GUIDANCE This Reporting Guidance document supports the preparation and reporting of the following Customers and People Key Performance Indicators (KPIs) prepared by E.ON UK plc. 1. Customer Operations Net Promoter Score for Home customers (top down) Net Promoter Score for Small and medium business customers (top down) Bill to Actual read for Home customers Bill to Actual read for Small and medium business customers 2. Health and Safety Total Recordable Incident Frequency (TRIF) Employee Lost Time Injury Frequency (LTIF) Employee It is the responsibility of the management of E.ON in the UK to ensure that appropriate procedures are in place to prepare its reporting in line with, in all material respects, this Reporting Guidance document. All data, unless otherwise stated, are prepared for the reporting period January 1 to December 31, 2013. The best view of the data on 1 st January 2013 has been used- unless specified otherwise. Data is prepared on a 100% basis for all operations in UK which E.ON has a 50% or more interest, including for joint ventures, alliances and stations operated by third parties under lease. Acquisitions and divestments are included and terminated respectively from the date of contractual completion of the transfer of asset ownership/leasehold. Restatements In some circumstances restatements of prior year reported and assured data may be required. Restatements are considered where there is a change in methodology, which means the restated data shows a more representative or accurate figure. General Reporting Principles In preparing this guidance document, consideration has been given to the following principles: Information Preparation to highlight to users of the information the primary principles of relevance and reliability of information; and
Information Reporting - the primary principles are comparability / consistency with other data including prior year and understand ability / transparency providing clarity to users. SCOPE OF REPORTING During 2013, E.ON SE was managed through both geographically segmented Regional Units, of which E.ON Regional Unit UK (RUUK) is one, and Cross Functional Units (CFUs) operating across the Group. For the data included in this reporting guidance document, the scope comprises RUUK and the CFUs assets and operations which occur in the UK (hereafter E.ON in the UK ), subject to the exclusions detailed below. Details of the organisational reporting boundaries are summarised below and explained further in the individual data sections of this Reporting Guidance. Organisational Reporting Boundaries E.ON Regional Unit UK comprises a series of business areas, which together serve over 5 million residential and small and large customers, based at different offices across the UK, including a UK central office in Coventry. The business areas in brief are: Customer Operations (our direct customer facing business) Sales and Marketing (including brand activities) New Business (new technologies and obligation delivery) Change Management HR Finance Strategy and Regulation (focuses on the long term direction of the business and our regulatory requirements) Corporate Affairs Internal Audit
CFUs operations in the UK comprise: The UK Generation business which is involved in producing electricity from a portfolio of 10 coal, gas and oil-fired power stations and 10 combined heat and power sites. It also includes ancillary facilities. The UK Renewables Business which forms part of E.ON Climate and Renewables (EC&R) operating 23 onshore and offshore wind farms and one dedicated biomass station. E.ON Global Commodities (EGC) sells all of the E.ON UK generation output and provides electricity and gas for E.ON UK supply activities. EGC is a wholly owned subsidiary of E.ON SE. E.ON New Build & Technology Limited (ENT) is a subsidiary company of E.ON New Build & Technology GmbH, offering consulting engineering and scientific services. E.ON New Build & Technology Limited is located at Ratcliffe, near Nottingham. E.ON Gas Storage UK Ltd (EGS UK), a UK subsidiary, is currently constructing an underground gas storage facilities at Holford in Cheshire. E.ON IT UK is a subsidiary of E.ON Business Services GmbH, Germany. E.ON IT UK is an IT company of E.ON UK providing a full range of IT solutions and services to its customer base within the E.ON group. E.ON E&P UK Ltd is an upstream oil and gas company with its head office in London and offices in Aberdeen and Great Yarmouth. It operates assets in the central North Sea and southern North Sea. Throughout both regions, the company also has interests in key pipeline infrastructure. E.ON E&P UK is owned by E.ON E&P GmbH, a subsidiary of E.ON Global Commodities SE. The E.ON Group management systems don t currently allow the consistent capture of the data of all the E.ON E&P operations at a geographical level- for example UK only. Therefore, these operations have only been included in this year s data where it is possible to gain accurate data and this is clearly marked against the data. All E.ON E&P operations are included in our Group CR Report available here E.ON Connecting Energies ( ECT ), headquartered in Essen, Germany, is a 100 percent subsidiary of E.ON SE, focusing on energy efficiency and distributed energy solutions in the Business 2 Business sector globally. ECT also acquired Matrix in late 2013 the UK market leader in energy management and energy efficiency services for commercial buildings. Due to the late nature of this acquisition these operations have only been included in this year s data where possible. All ECT operations are included in our Group CR report available here.
REPORTING SPECIFICS AND METHODOLOGY 1. Customer Operations Top Down Net Promoter Scores for Home customers Indicators and Top Down Net Promoter Scores for Small and medium business customers (SME) We ask customers: on a scale of 0-10 how likely are you to recommend E.ON to a friend or colleague. A score of 9 or 10 is a promoter, a score of 0 to 6 is a detractor, and the rest are passive. Net Promoter Score (NPS) is calculated by taking the percentage of those that are promoters from the percentage that are detractors. Originally created by Consultancy Bain & Co, it is widely recognised as a key measure of success and loyalty for customer facing businesses. NPS is a Board key performance indicator for E.ON UK and E.ON group board. Definition/ methodology The number reported quarterly comes from the UK Customer Tracker, which is E.ON UK s continuous opinion poll. The UK Residential Customer Tracker is run by research agency Ipsos MORI on behalf of E.ON UK. Ipsos MORI use a field research partner to recruit and collect the data from an over 2 million strong online consumer panel. The online survey gathers opinions from a representative mix of approximately 460 E.ON residential customers on a monthly basis, each responding to a range of questions including NPS. The sample size gives us a statistically robust measure to represent the whole customer base. However, by the very nature of any quantitative research data there is an inherent margin of error, this has been statistically calculated as plus or minus 4 % points. NPS for residential customers is calculated on a monthly basis. The 2013 figure represents the last three month rolling average of the year. The UK SME Customer Tracker was also run by IPSOS MORI on behalf of E.ON UK. Responses are collected via telephone interviews conducted with a representative mix of SME s. NPS for SME customers is calculated on a 6 month rolling average basis so the 2013 figure represents the result for the last 6 months of the year. The reason for this is that the base sizes for SME market per competitor are not comparable on a quarterly basis and a 6-month rolling average enables us to make competitor benchmarking more meaningful. At the beginning of 2013, the sample profile of the SME tracker was adapted to focus only on SMEs that are on a Business tariff and we no longer interview SMEs who are on a Residential tariff. This audience previously accounted for c.20-25% of all customers.
Therefore the figures for 2012 and 2011 have been restated to reflect this change in methodology and to show a more accurate figure. The assured figure has been clearly shown in the footnotes within the document. Scope This indicator covers our Regional Unit UK business, where we have customer facing activities. Indicator Bill to Actual read for Home customers (%) and Bill to Actual read for Small and medium business customers (%) This is the percentage of products billed for home and Small and medium business customers, where the last charge is charged up to an actual meter reading rather than an estimate, for products with consumption based charging. An actual read is defined as a data retrieval meter reading or a customer s own meter reading. There are no specific checks in place to ensure that the customer own read is accurately reported. Definition/ methodology The measure looks at the number of customers with a bill created in a calendar month and then establishes how many of the accounts billed have charges created to an actual or estimate meter reading. The final figure represents the Year To Date figure and is calculated at product (electricity and gas) level, rather than bill level. The measure is calculated as follows : Actual meter reads / (actual meter reads + estimated meter reads) x 100 This calculation excludes customers who are not billed based on their consumption, but instead are set monthly rate based on their circumstances. Meter reads are therefore not relevant to calculating their bill. Scope The measure covers all bills, including cyclical, first and final bills, for all Home and Small and medium business customers. The measure does not take in to account meter type for the customers, but simply measures if the bill is sent using an actual meter reading or an estimate. Pre payment customers are included in the measure, as these customers are billed to vend reads in the majority. This is a reading that comes straight from a meter and is classed as an actual meter read. The measure includes all Home and Small and medium business customers within the
Regional Unit UK business, for the period 1st January to 31st December 2013. 2. Health and Safety Indicator Total Recordable Incident Frequency (TRIF) - employee Total Reportable Incidents Frequency (TRIF) is the sum of injuries/occupational diseases resulting in fatalities, permanent total disabilities, lost workday cases, restricted work cases/job transfers (including medical treatment cases, excluding first aid). The calculated figure is the Total Reportable Incidents Frequency (TRI) per 1,000,000 hours worked. For E.ON UK staff incidents are recorded for injuries occurring at any location, including overseas locations, but exclude injuries which occur during travel to and from a person s normal place of work. The indicator is calculated as follow: (Total number of injuries / number of employee hours worked in a 12 month period) x 1,000,000 Definition/ methodology For other staff working in the Global units which comprise E.ON in the UK, only recordable incidents which occur at locations in the UK are recorded. Incident data is recorded by individuals or via a telephone logging system into an internal bespoke reporting system tool (ARNIE) which is accessible to all staff of E.ON in the UK. This tool is available on the internal E.ON intranet. Recorded incidents are automatically flagged to the individuals line manager to investigate with the support of the Safety teams. Incident classifications are reviewed when the record is approved for closure by a senior Safety professional. This review can lead to reclassification of previously recorded incident cases; previously reported data is updated to reflect the final classification. For staff of E.ON in the UK, hours are calculated on a monthly basis by taking month-end FTE figure from the E.ON Human Resource system. This figure is multiplied by the working weekdays in the month. To determine working hours, a 6.5 hour day is used to discount for hours not worked (e.g. holidays). Overtime recorded through payroll is added each month. E.ON Ruhrgas UK E&P hours are calculated using FTE from their own Human Resources system multiplied by the working weekdays in the month multiplied by a 7.8 hour day. No
overtime is included in all UK employees contract. Scope The data extracted on 31 March 2014 has been used- so includes any adjustments for reclassification of incidents entered after 31 December 2013. This includes all employees of E.ON in the UK. Indicator Lost Time Injury Frequency (LTIF) employee Lost Time Injury Frequency is the sum of lost time incidents per 1,000,000 employee hours worked. The indicator is calculated as follow: (Number of lost time injuries / number of employee hours worked in a 12 month period) x 1,000,000 A lost time injury means a non-fatal traumatic injury that occurs in the workplace that causes any loss of availability to work for a period of a full day or shift beyond the day or shift in which the incident occurred. It includes days where the involved person was not scheduled to work. Definition/ methodology Lost time incidents are injuries resulting in lost workday cases. This includes days where the involved person was not scheduled to work; it excludes where temporary job transfers occur ( restricted work cases ). Incidents are recorded for workplace injuries occurring to any E.ON in the UK employee at any location, including overseas locations, but exclude injuries which occur during travel to and from a person s normal place of work or start place of work. Incident data is recorded by individuals or via a telephone logging system into an internal bespoke reporting system tool which is accessible to all staff. This tool is available on the internal E.ON UK intranet. Recorded incidents are automatically flagged to the individual s line manager to investigate with the support of the Safety teams. Incident classifications are confirmed when the record is approved for closure by a senior Safety professional. The review by the Safety professional can lead to reclassification of previously recorded incident cases. Previously reported data is updated every month to reflect the final classification. Employee hours are calculated on a monthly basis by taking month-end FTE figure from the E.ON Human Resource system. This figure is multiplied by the working weekdays in the month. To determine working hours, a 6.5 hour day is used to discount for hours not worked (e.g. holidays). Overtime recorded through payroll is added each month. E.ON Ruhrgas UK
E&P hours are calculated using FTE from their own Human Resources system multiplied by the working weekdays in the month multiplied by a 7.8 hour day. No overtime is included in all UK employees contract. Scope The data extracted on 31 March 2014 has been used- so includes any adjustments for reclassification of incident entered after 31 December 2013. This includes all employees of E.ON in the UK.