E.ON UK PLC CORPORATE RESPONSIBILITY REPORTING GUIDANCE

This Reporting Guidance document supports the preparation and reporting of the following Key Performance Indicators (KPIs) prepared by E.ON UK plc.

  1. Customer Operations
  • Net Promoter Score for Residential customers (top down)
  • Net Promoter Score for Small and medium business customers (top down)
  • Bill to Actual read for Residential customers
  • Bill to Actual read for Small and medium business customers
  1. Health and Safety
  • Total Recordable Incident Frequency (TRIF) Employee
  • Lost Time Injury Frequency (LTIF) Employee
  1. Environmental indicators
  • Reportable environmental incidents
  • Scope 1 Greenhouse gas (GHG) emissions
    This includes all direct GHG emissions (heat or steam) as defined by the GHG Protocol. Direct GHG emissions are emissions from sources that are owned or controlled by ‘E.ON in the UK’ as consistent with financial reporting.

This includes:

Total Carbon Dioxide (CO2) emissions from generating electricity

  • CO2e emissions from gas consumption in buildings
  • CO2e emissions from business miles in commercial vehicles
  • CO2e emissions from business miles in company cars
  • CH4 emissions from electricity generation (as CO2 equivalent (CO2e))
  • N20 emissions from electricity generation (as CO2e)
  • SF6 losses from power generation sites (as CO2e)
  • CO2e emissions from burning waste
  • CO2e emissions from refrigerant losses
  • Scope 2 Greenhouse gas (GHG) emissions

This includes indirect GHG emissions from the consumption of purchased electricity (heat or steam) as defined by the GHG Protocol. Indirect GHG emissions are emissions that are a consequence of the activities of E.ON UK PLC, but occur at sources owned or controlled by another entity.

This includes:

  • CO2e emissions from electricity consumption in our buildings
  • CO2e emissions from imported electricity for electricity generation in power stations

This excludes:

  • CO2e emissions from electricity distribution losses

We consider that we do not have any scope 2 losses associated with heat networks as all of our CHP heat customers are on the same sites as the CHP stations.

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, 2015. The best view of the data on 1st January 2015 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 2015, 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)
  • B2B and Marketing (including brand activities)
  • New Business (new technologies and obligation delivery)
  • HR
  • Finance
  • Strategy and Regulation (focuses on the long term direction of the business and our regulatory requirements)
  • Corporate Affairs
  • Corporate Audit

*The business areas listed reflect how the business was structured as of 31st December 2015

CFUs operations in the UK comprise:

  • The UK Generation business which is involved in producing electricity from a portfolio of coal, gas and oil-fired power stations and 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 onshore and offshore wind farms and dedicated biomass stations.
  • 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 Ruhrgas UK E&P Limited 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 Ruhrgas UK is owned by E.ON RuhrgasE&P GmbH, a subsidiary of E.ON Ruhrgas AG, headquartered in Essen, Germany. The E.ON Group management systems don’t currently allow the consistent capture of the data of all the E.ON RuhrgasE&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 included in the methodology section when included. All E.ON RuhrgasE&P operations are included in our Group CR Report availablehere
  • 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 operations in the UK are included unless specified. All ECT operations are included in our Group CR report available here.

REPORTING SPECIFICS AND METHODOLOGY

  1. Customer Operations

Indicators / Top Down Net Promoter Scores for Residential customers
and
Top Down Net Promoter Scores for Small and medium businesscustomers (SME)
Definition/ methodology / 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 number of detractors from the number of promoters and dividing that by the number of respondents.
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.
Residential NPS
The number reported 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 Breaking Blue on behalf of E.ON UK. Breaking Blue use a field research partner to recruit and collect the data from an over 1 million strong online consumer panel. The online survey gathers opinions from a representative mix of approximately 430 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, for E.ON’s NPS score this has been statistically calculated as plus or minus 1% points if normal assumptions hold.
NPS for residential customers is calculated on a monthly basis. The 2015 figure represents the average of the 12 monthly scores from 2015. Please note this is a methodology change from previous data. Previous data will not be resubmitted on this basis so will not be directly comparable, however the change will be noted in the data table.
SME NPS
The UK SME Customer Tracker was run by Breaking Blue on behalf of E.ON UK. Responses are collected via telephone interviews conducted with a representative mix of SME’s controlled via quotas for regionality. The final SME Customer NPS 2015 figure represents the average NPS score for the four quarters of the year.
Prior to 2015, all results we presented were on a 6 monthly rolling average, however the methodology change was introduced to align all of E.ON’s European markets under the same reporting guidelines. Previous data will not be resubmitted on this basis so will not be directly comparable, however the change will be noted in the data table.
Scope / This indicator covers our Regional Unit UK business, where we have customer facing activities.
Indicator / Bill to Actual read for Residential customers (%)
and
Bill to Actual read for Small and medium business customers (%)
Definition/ methodology / This is the percentage of products billed for Residential and Small and medium business customers, where the last charge is charged up toan actual meter reading rather than an estimate, for products with consumption based charging.There are a limited number of products that are charged on a non-consumption basis, but these do not form the core part of the E.ON product offering.
An actual read is defined as a read by meter read agent (physical visit), a read by customer or an automated meter read eg smart meter. There are no specific checks in place to ensure that the customer own read is accurately reported.
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 Residential 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 issent using an actual meter reading or an estimate. Pre payment customers are included in the measure, as these customers are effectively billed at point of purchase 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 Residential and Small and medium business customers within the Regional Unit UK business, for the period 1st January to 31st December2015.
  1. Health and Safety

Indicator / Total Recordable Incident Frequency (TRIF) - employee
Definition/ methodology / 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 (TRIF) 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
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 6.5 hour day. No overtime is included in all UK employees contract.
The data extracted on 31 March 2016 has been used- so includes any adjustments for re-classification of incidents entered after 31 December 2015.
Scope / This includes all employees of E.ON in the UK.
Indicator / Lost Time Injury Frequency (LTIF) – employee
Definition/ methodology / 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.
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 6.5 hour day. No overtime is included in all UK employees contract.
The data extracted on 31 March 2016 has been used- so includes any adjustments for re-classification of incident entered after 31 December 2015.
Scope / This includes all employees of E.ON in the UK.

REPORTING SPECIFICS AND METHODOLOGY

  1. Environmental indicators

Indicator / Environmental incidents (number)
Definition/ methodology / Reportable Environmental Incidents comprise reportable incidentdata from all E.ON in the UK businesses. A reportable incident is defined as ‘actions or failures to act which will or could lead to prosecution, other enforcement action, civil proceedings or serious harm to the environment’.
ARNIE is an internal incident reporting system and is the official medium to report environmental incidents and near hits. Its use throughout the business is varied and therefore not all reportable environmental incidents can be tracked through ARNIE. A record of all incidents and near hits is held at a Regional Business Unit and Global Unit level. All units are required to notify the Corporate Environment Manager of all reportable incidents. A record of these incidents is recorded by the Corporate Environment Team.
Scope / E.ON in the UK activities.
All Regional and Global Units within E.ON in the UK have the potential to have reportable environmental incidents however; some have a higher risk than others. Generation and EC&R UK have the highest risk. Nonetheless all Regional and Global Units remain in scope.
Indicators / Total Carbon Dioxide (CO2) emissions (million tonnes) from generating electricity
and
Carbon Dioxide (CO2) Intensity (ktCO2/TWh) from generating electricity
Definition/ methodology / Annual CO2 emitted (million tonnes) from all generating sites as reported under European Union Emissions Trading Scheme (EU ETS). Sites under the EU ETS reporting threshold are excluded from scope.
The reporting period is 1st January to 31stDecember 2015. The best view of the data on 31 March 2016 has been used- to allow completion of the audit process by LRQA.
CO2 intensity applies the following calculation to the total figure:
CO2 emissions (kilotonnes) from generating electricity
Total electricity, heat and steam supplied (TWh)
Total electricity, heat and steam supplied: this comprises all electricity, heat and steam supplied from UK Generation and UK Renewables (EC&R) businesses. The data is obtained directly from the power station performance data obtained through continuous measurement of output except in the case of wind farms where electricity supplied is measured through a meter which measures total output. Heat and steam is converted into Power using normal Heat Accountancy rules.