Customer Orientation
GRI 103, 416-2, 2-25
In May 2021, the strategic directions of CEZ Group were announced in VISION 2030—Clean Energy of Tomorrow. The directions include the commitments to provide the best energy solutions and highest quality customer experience and to modernize and digitize distribution and retail in Czechia. By 2025, all key customer processes will be available online. We aim to develop effective, economical, and environmentally-friendly energy solutions while fulfilling the Czech energy and climate plan.
CEZ Group serves customers responsibly and provides comprehensive energy advice and services that can be customized to customers’ needs. We offer energy solutions to various individuals and institutions: residential customers, industrial companies, small and medium-sized businesses, municipalities, public and private organizations, hospitals, schools, sports arenas, and companies managing buildings and premises of all types. Our energy solutions reduce energy consumption and improve our customers’ quality of life by using advanced technology for electricity and heat generation, lighting comfort, and mobility.
CEZ Group actively participates in discussions on the transformation of the energy market and helps to find the best possible solutions for customers. CEZ Group supports stricter legislation, and we help customers fight unfair practices. We evaluate all our sales and marketing practices on the market to meet the highest standards, and we have been perceived as the most trustworthy brand on the market for many years. In 2023, ČEZ Prodej won the Most Trusted Brand ranking in the energy supplier category for the eighth time. We have also set benchmarks for ensuring that contracts and terms and conditions are as transparent and fair to customers as possible. Our commercial and contractual conditions are transparent and unambiguous. Our employees receive regular training to offer solutions to our customers while maintaining the highest level of service.
CEZ Group invests billions of Czech crowns into distribution system facilities to ensure a safe and reliable electricity supply. In case of an emergency, new advanced elements allow us to locate the point of failure faster and restore supply sooner. The reliability of the electricity supply and the speed of its restoration in case of failure are key indicators of our customers’ satisfaction.
In mid-2021, ČEZ Distribuce launched the Cooperating Partners program, which establishes cooperation between inspection technicians and energy companies. The program aims to help customers simplify and speed up the entire administration of inspection reports and reduce the error rate in these reports. Inspection technicians have access to the Distribution Portal to verify the technical data of the point of consumption and can confirm inspection reports online. The interest in the program is significant; ČEZ Distribuce currently cooperates with more than 830 inspection technicians.
GRI G4-EU4, G4-EU12; SASB IF-EU-000.C, IF-EU-240a.1, IF-EU-240a.2, IF-EU-240a.3, IF-EU-240a.4 / SDG 7, SDG 10
ČEZ Distribuce is the largest electricity distribution system operator in Czechia. It operates on approximately two thirds of the country’s territory, inhabited by about 61.5% of the population (population density of about 127 persons/km2). The following table shows the length of above ground and underground lines of the distribution system.
| Above and Underground Lines (km) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Length of above and underground lines | 167,628 | 168,533 | 169,665 |
| o/w high voltage | 10,002 | 9,998 | 10,020 |
| o/w medium–voltage | 51,295 | 51,462 | 51,590 |
| o/w low voltage | 106,331 | 107,073 | 108,055 |
| Number of Requests for Connection | 2021 | 2022 | 2023 |
|---|---|---|---|
| Requests for connection to energy supply | 144,688 | 130,478 | 108,020 |
| Requests for connection of power generation plants and micro–generators | 16,191 | 70,212 | 63,069 |
The massive boost of renewable energy sources and especially photovoltaics brings along greater demands on the capacity of the network and related investments. As of December 31, 2023, ČEZ Distribuce registers requests for connection of generation plants with a capacity of approximately 19.8 GW, of which 68% is already met by signed Future Connection Agreements.
We see the following as important areas for further development with the potential to connect new customers:
- industrial areas around motorways
- urban zones
- popular tourist locations
To develop the distribution system and ensure access to basic services, we also cooperate with state and local governments. Responsibility for the cooperation lies with a specialized department of ČEZ Distribuce, Public Sector Care, consisting of 11 representatives. In total, there are 4,063 municipalities in the distribution territory of ČEZ Distribuce, and each representative of the specialized department attends on average 130 meetings per year with representatives of state and local governments.
As a result of the deregulated EU electricity market, ČEZ Distribuce disconnects and reconnects customers based on requests from the energy selling companies. The disconnection and reconnection of customers is governed by the applicable legislation and the General Terms and Conditions:
- Decree No. 540/2005 Coll., Decree on the quality of electricity supply and related services in the electricity sector
Disconnection is a measure of last resort; prior, the customer is contacted repeatedly, and possible alternative solutions are suggested (e.g., payment plans).
| Indicator | Unit | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| Average retail electric rate for: | CZK/kWh (excl. VAT) | |||
| (1) residential | 1.98 | 3.02 | 4.45 | |
| (2) commercial | 1.82 | 2.99 | 4.13 | |
| (3) industrial customers | N/A | N/A | 4.12 | |
| Typical monthly electric bill for residential customers for: | CZK (excl. VAT) | |||
| (1) 500 kWh | 2 650 | 3 550 | 4 430 | |
| (2) 1 000 kWh | 3 760 | 5 070 | 7 000 | |
| of electricity delivered per month | ||||
| Number of residential customer electric disconnections for non–payment | Number | 7,282 | 4,231 | 4,768 |
| of which disconnections: | Number | |||
| (1) 0–2 days | 1,300 | 1,384 | 2,036 | |
| (2) 3–7 days | 1,766 | 1,503 | 1,255 | |
| (3) 8–30 days | 2,426 | 982 | 1,141 | |
| (4) 31–365 days | 1,790 | 362 | 336 | |
| (5) more than 1 year | 0 | 0 | 0 | |
| Percentage of residential customers reconnected within 30 days,, ČEZ Distribuce | % | 75 | 91 | 93 |
Based on VISION 2030—Clean Energy of Tomorrow, we aim to provide the best energy solutions and the highest quality customer experience. In our business, we do not forget vulnerable customers, such as people with disabilities and the elderly.
Our product portfolio offers a new electricity and gas tariff for people with disabilities. This tariff comes with a lower price and it even enables priority check-in at customer care centers and on the hotline. To sign up for this product, the customer must present a Disabled Person’s Pass, either their own or the person with whom they share a household at the given supply point. In 2023, we negotiated over 1,500 contracts for electricity and almost 500 contracts for gas with this product people with disabilities. As of January 26, 2024, the product has been arranged at more than 10,000 electricity supply points and almost 3,000 gas supply points. The customer can switch to this product at any time, even during fixation.
In March 2021, we launched a special hotline facilitating communication for the elderly and the hearing impaired.
In case customers run into problems with their energy payments, they can use payment schedules. We provide them without interest and the customer can arrange a payment schedule online, from the comfort of their home. In 2023, 42,864 customers took advantage of the repayment schedule. 45% of them took advantage of the option to arrange a repayment plan online.
Within ČEZ Prodej customer complaints and claims are dealt with by the Complaints and Special Activities Department. All claims and grievances are objectively investigated, and a written statement is sent to the customer. If deficiencies are found, corrective measures are ensured. Regular meetings of resolvers of claims and grievances with the owners of individual processes take place in order to uncover the root causes of complaints and reduce their number. At all levels of management, there is regular reporting of the complaint and grievance resolution process, including monitoring of repeated claims, and there is a regular customer satisfaction (CX) survey with complaint handling.
At ČEZ Distribuce we regularly look for opportunities to improve the customer experience, not only on the basis of the results of complaints. The Quality of Service and Claims Department, which connects complaint solvers and process methodologies, makes it possible to apply customer suggestions and their dissatisfaction to processes in a very short time and thus improve satisfaction faster. This is also helped by regularly conducted customer satisfaction surveys on selected processes. Owners of each customer journey also identify vulnerabilities that customers may be in and address them.
In 2023, as part of government measures, a cap on energy prices was introduced, i.e. a price for end customers of CZK 5,000 excluding VAT on electricity and CZK 2,500 excluding VAT on natural gas. Due to the stabilization of prices on the stock exchange, ČEZ Prodej prepared a unique offer for customers with prices fixed above the government ceiling in June. It allowed customers who had their prices fixed above the level of the government-set ceiling for a longer period, and would thus pay high prices from 1 January 2024, to switch to a cheaper product. Customers have been repeatedly contacted through various channels and this option has been actively offered to them. In total, about 120,000 customers out of a total of 155,000 took advantage of the fixation under the government cap by the end of 2023. As of 1 January 2024, the remaining customers who did not take advantage of this option were capped at the price of the government footprint, i.e. CZK 5,000 excluding VAT for electricity and CZK 2,500 excluding VAT for natural gas, so that they would not pay high prices for the commodity component of energy.
CEZ Group has focused on a good relationship with its customers in a long-term. The pro-customer orientation is reflected in VISION 2030—Clean Energy of Tomorrow, where CEZ Group sets the goal to maintain the highest Net Promoter Score among large energy suppliers.
One of the foundations of the relationship with customers is the credibility of the company, which CEZ Group places great emphasis on. In 2023, CEZ Group was named the most trusted supplier among all energy suppliers in the Czech Republic for the eighth time in a row. In the survey, 4,000 respondents evaluated 700 brands in various areas and categories.
Customer Experience (CX)
We measure customer experience using the CX parameter that is based on CSAT (customer satisfaction score) and CES (customer effort score) methodology. It is a composite indicator that includes satisfaction with the handling of the request, satisfaction with the staff, and the effort required to handle the request. Only the best mark is counted on a 5-point-scale from very satisfied to very unsatisfied. We want to keep the CX parameter above 85% in the long term.
Of the three components of the indicator, we focus the most on minimizing the effort that the customer has to make to resolve his request. The goal is to make resolving requests as easy as possible for customers.
SDG9
Strategic priorities of CEZ Group include continuous modernization and digitalization of distribution network and digitalization of key customer services. The priorities were announced in VISION 2030—Clean Energy of Tomorrow, and the transformation of the distribution network includes three targets for 2030:
- the use of smart meters (the goal is 80% of power consumption to be covered by smart meters). The smart meter rollout on low-voltage smart meters rollout will commence in 2024. We will cover all customers with consumption over 6 MWh by July 2027.
- remotely measured transformer stations (the goal is 80% of transformer stations to be measured remotely). 25% of stations have been covered by 2023.
- installation of optic fiber networks (the goal is 8,000 km). At present, 4,200 km have been installed.
Our goals were based on and are assessed by benchmarking with other European peer distribution companies.
The aim of the digital transformation of the distribution network is the development of a smart automated grid with increased reliability. The development of the smart grid includes verification projects focused on metering, communication, network automation, and improvements in operational safety and supply reliability. Successfully verified concepts will become a part of implementation projects across the distribution grid. Our first priority is efficient network management and subsequent cost reduction, that is why we implement advanced analytical tools with superdata from intelligent network elements. The new smart grid will enable new connections of decentralized generation. It will also allow the utilization of the capacity of fiber optic networks for telecommunication services.
The second strategic priority is the transformation and digitalization of key customer services. The aim is to streamline processes and, above all, services for customers and partners. By 2025, we want 100% of key customer processes to be online and the share of digital customer interactions to reach 80%. Major projects are planned – transition to SAP 4HANA and connection to the Energy Data Center, which will enable the development of electricity sharing, support for active customers and new business models in the field of aggregation. The ambition of these projects is the application of new procedures and modern IT services supporting the achievement of the company's ambitious goals.
Our company invests systemically into digitalization and automation. We focus on new digital channels and simplify customer journeys. An example is the implementation of a mobile application. We regularly evaluate customer experience against benchmarks and focus on monitoring digital interaction with customers. In 2023, we serve the majority of customers digitally in all segments, with the share of digital customer interactions exceeding 62%. The use of the mobile application and distribution portal is growing significantly.
ČEZ Prodej is also digitizing internal and customer processes.
In 2023, the number of customers with an online account exceeded the 60% mark. The proportion of selected customer requests resolved online reached 40%. In June, we successfully launched a new mobile application, Můj ČEZ, which is already used by 300,000 of our customers. We have deployed new features online, such as product change and prolongation, interactive electricity and gas billing, and the improved ČEZ Heating Service. We focus on digitization and redesign of acquisition processes. We are expanding the possibilities of online management of non-commodity services and technologies in the portal and application.
CEZ Group established the Office of the Ombudsman in October 2009 as one of the first energy companies in Europe and the first one in Czechia. The ombudsman reports directly to the Board of Directors and is completely independent of CEZ Group subsidiaries.
The ombudsman’s tasks include investigations of customer claims, assessments of customer suggestions for improvement of services provided by CEZ Group, and proposals of systemic changes to individual CEZ Group companies. As an independent body, the ombudsman also considers each case based on the customer’s individual circumstances and potential hardship. Since the establishment of the ombudsman office, 10,317 claims have been processed.
The Ombudsman investigates suggestions from customers who are not satisfied with the settlement of their complaint or claim previously filed with one of the CEZ Group companies. This incentive may concern, for example, invoicing of electricity or gas consumption, invoicing of mobile or financial services, metering of electricity consumption, services provided, distribution equipment, quality of electricity supplied, behavior and attitude of employees, etc. These individual activities are provided by CEZ Group companies or their suppliers.
More information about the Ombudsman, including annual reports, can be found on the following website: https://www.cez.cz/cs/o-cez/odpovedna-firma/energie-pro-budoucnost/prinaset-uzitecna-reseni-zakaznikum/ombudsman
In 2023, the CEZ Group ombudsman received 815 notifications from customers: 804 submissions and 11 suggestions for improvement. The ombudsman assessed 46 complaints as legitimate. In 28 cases, the customers’ claims were recognized as legitimate by concerned companies from CEZ Group. In 18 cases, the ombudsman applied a specific approach for the customer’s benefit, namely exercising the right to apply for an exception in the case of a customer in a difficult life situation even if the claim is not justified. In October 2024, it will be 15 years since ČEZ, a. s., was the first in the Czech Republic to introduce the institution of the Office of the Ombudsman.