EU3 Number of customers

EU4 Powerlines

EU7 Demand management programmes

ScottishPower promotes a range of energy saving measures to residential and business customers. These are described in the Climate and Carbon Reduction section of this report.

PR3 Information to consumers

ScottishPower is obliged to inform every customer of our most up to date fuel mix. This information is available both via our website. This information is available via our website: http://www.scottishpower.co.uk/Home_Energy/Customer_Services/Where_we
_get_our_energy/ and annually as part of our standards of service booklet.

We provide information on what to do in an emergency to every customer on the back of customers bills and via the website. It is also included within the new customers welcome pack. See http://www.scottishpower.co.uk /Home_Energy/Customer_Services/What_to_
do_in_an_emergency/

Our standards of service are issued annually to existing customers and are also available upon request or online via our retail website.

In addition to these obligations, our environmental impact is conveyed through our emissions to air report via our annual CSR report and also included within our fuel mix table.

We issue energy efficiency advice to every customer at least once annually. Energy efficiency advice is also conveyed regularly as a supportive message to marketing campaigns and customer communications. We also provide a free phone advice line. Based on data from July to December 2010, the energy efficiency advice line handled an estimated 5,000 calls last year. In addition, we issued nearly 39,000 home energy efficiency audits. See http://www.scottishpower.co.uk /Home_Energy/Energy_Efficiency/

We provide information on how to read your meter to every new customer as part of their OMR fulfilment process and this is available online. See http://www.scottishpower.co.uk /Home_Energy/Customer_Services/How_to_
read_your_meter/

We also provide information about carbon monoxide poisoning - see http://www.scottishpower.co.uk /Home_Energy/Customer_Services/Information
_On_Carbon_Monoxide/

PR4.1 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.

None (See 4.3, below).

PR4.2 Voluntary codes regarding information to consumers and product labelling

ScottishPower subscribes to the Billing Code and the Sales Code, which govern the quality of information provided to customers.

ScottishPower is a member of the EnergySure Code of Practice for Face to Face Marketing, which is administered through Energy UK. The Code is audited annually by an independent firm of auditors. Findings under the audit can be Major non-compliance, Important non-compliance or Minor non-compliance. While ScottishPower has no Major non-compliance findings under the 2010 audit, it has now been confirmed that there is one Minor non-compliance and three important non-compliances listed against ScottishPower. It has not yet been decided whether these non-compliances will attract any sanctions under the Code.

PR4.3 Claims arising from non-compliance with product information and product labeling.

None. In September 2010 Ofgem announced an investigation in to four of the six large Domestic Suppliers (EdF, Npower, ScottishPower and SSE) in relation to their compliance with Standard Licence Condition 25 of the gas and electricity supply Licences. The investigation is considering whether the four suppliers are complying with obligations under SLC 25 with regard to telephone and face-to-face sales activities. The investigation is ongoing and we are co-operating fully, in order to provide Ofgem with all relevant information. No findings have been confirmed against any supplier.

PR5.1 Customer Satisfaction

Domestic customer satisfaction, along with its constituent attributes, is measured annually via robust quantitative primary market research techniques. Computer-assisted telephone interviewing is combined with on-line surveys used to gain consumers' perceptions and expectations of all areas of ScottishPower's service that consumers themselves have deemed 'critical-to-quality'. This research is complemented with further qualitative research every two-three years.

In 2010 4,545 interviews were undertaken. Of the 73 weighted service attributes that were measured, 48 remained steady, 8 declined and 17 improved.

PR5.2 Measures adopted as a result of customer satisfaction surveys

In 2010 we conducted three waves of Voice of the Customer research, compared with one in 2009, with around 1,300 interviews in each wave.

VoC results were incorporated into the 2011 business planning process. One of the initiatives that was launched in response to customer research was the inclusion of video guides in the support section of our customer website, covering issues such as how to read a meter and how direct debit payments are calculated.

PR5.3 Customer Complaints

Energy Retail: Number of customer complaints to UK consumer bodies

See also narrative section on Customer Complaints.

Energy Networks: Number of customer complaints

Energy Networks received a total of 17,006 customer complaints and many thousands of enquiries during 2010, mainly due to supply interruptionsand associated claims.

PR5.4 Telephone customer service: indicate the number of call centres and total number of calls received during the year.

Our Energy Retail business operates 5 main call centres and handled 7.126 million calls in 2010.

Energy Networks operates two call centres and handled 544,235 calls in 2010.

PR6.1 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship. Indicate whether the company voluntarily applies any regulations, procedures, external codes, etc., that are an improvement on current legislation regarding advertising activities.

ScottishPower complies complicity with all advertising guidance legislation. Internally we have a structured sign off procedure for all adverts encompassing legal, pricing, product development and marketing.

We also voluntarily subscribe to the Green Supply Guidelines focusing upon the transparent and accurate promotion of environmental products.

PR6.2 Prohibited or externally questioned products.

In early 2010 Ofgem raised questions around the size and timing of ScottishPower's prompt pay discount for Standard Credit customers, and also the variations in prices across certain geographic regions. Following dialogue with Ofgem, ScottishPower agreed to make some changes to these prices to address some of Ofgem's concerns. This has now been completed.

PR7.1 Non compliance with marketing regulations/codes:

(a) Fines or penalties (b) Incidents with warnings (c) Incidents with voluntary codes

There was no non-compliance with marketing regulations or codes in 2010.

PR8.1a Complaints originating from regulatory bodies relating to customer privacy

114 complaints relating to customer privacy were received by official bodies during 2010.

104 came from the Telephone Preference Service and 1 from CPS global. No complaints were found to be justified.

The Information Commissioner received a further 9 complaints. Of these, 5 were unjustified, 3 were justified and 1 is on-going.

PR8.1b Complaints of another origin, validated by the company relating to customer privacy

The company received 147 complaints relating to privacy directly from customers. Of these, 83 were found to be unjustified and 64 were justified.

PR8.2 Total number of cases of data leaks, thefts or losses.

No thefts or losses of customer data occurred during the year.

PR9 Monetary value of any fines received in respect of: (a) non compliance with product and service information or labelling; (b) non compliance with codes relating to advertising or marketing (c) anti competitive behaviour

No non-compliances and no fines levied during 2010.

PREU23 Programmes, including those in partnership with government, to improve or maintain access to electricity and customer support services.

The key programme we are signed on to is the Energy Retail Association’s Safety Net, to avoid the disconnection of vulnerable customers. See section on Debt and Disconnection for further information.

PREU24 Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services.

See sections on the Carefree Scheme and Customer Diversity.

PREU24.2 Customer Safety

Gas customers on the Priority Services Register, who are eligible (ie: who receive qualifying social benefits) receive free gas safety checks on household appliances.

In addition, the company promotes the use of carbon monoxide detectors on its customer website.

ScottishPower Energy Networks carry out extensive campaigns on safety including:

• Electrical safety - school education programmes
• Electrical safety - Real life scenarios at the Risk factory for school and educational groups
• Information leaflets and visits to agricultural groups
• Information leaflets and visits to road haulage companies
• Information leaflets and visits to recreational sites and angling groups
• Presentations to emergency services on electrical safety
• Safety seminars for contractors
• Electrical safety construction groups and councils i.e. street lighting

PREU26 Percentage of population unserved in licensed distribution or service areas

Zero.

PREU27.1 Customer Disconnections

The GRI indicators ask for the number of customers who were reconnected within certain timescales, following payment of the bill. However, payment of the bill in full by the customer only accounts for less than 5% of reconnections.

Other reasons for reconnection include the customer agreeing to a payment plan and/or the fitting of a prepayment meter to recover the debt, or a change of tenancy at the property. Customers may also be reconnected if they are identified as vulnerable after disconnection and/or they go onto Fuel Direct, whereby their energy bills are paid direct from benefits by the Department for Work and Pensions.

PREU27.2 Customer Reconnections

The total number of reconnections in 2010 was 668 – 237 electricity and 431 gas.

The GRI indicators for the electricity sector ask how long it takes the company to reconnect a customer after a bill has been paid, ranging from within 24 hours to up to a year.

As stated above, payment of the bill in full by the customer only accounts for approximately 5% of reconnections.

Other reasons for reconnection include the customer agreeing to a payment plan and/or the fitting of a prepayment meter to recover the debt, or a change of tenancy at the property. Customers may also be reconnected if they are identified as vulnerable after disconnection and/or they go onto Fuel Direct, whereby their energy bills are paid direct from benefits by the Department for Work and Pensions.

In addition, in the UK suppliers have to meet Overall Standards of Service, with a target to reconnect disconnected customers within one working day of agreeing to pay.

The numbers of reconnections within 24 hours were:

Electricity: 73

Gas: 55

The numbers of reconnections within one week were:

Electricity: 132

Gas: 151

The number of reconnections that took longer than one week was 441 – these do not relate to payment of the bill. There were more reconnections than disconnections in 2010. This is because some disconnections from 2009 would have been reconnected in 2010.

PREU28 Quality of service: interruption frequency

Customer interruption figures per 100 connected customers is used in the UK, as reported to Ofgem. Performance figures cover the Ofgem reporting year from 1^st April 2009 to 31^st March 2010.

PREU 29 Quality of service: interruption duration.

Average customer minutes lost (CML) per connected customer, as reported to Ofgem. Performance figures cover the Ofgem reporting year from 1^st April 2009 to 31^st March 2010.

See also performance graph in Customer Service section for comparative data.

PR95 Consumer Associations

We continue to meet our key Consumer Associations - Consumer Direct, Consumer Focus, Energy Ombudsman – on a regular basis. We attend formal quarterly industry meetings with each of them, and we also engage in regular updates to ensure we work together to provide strong customer support. ScottishPower continues to support joint activities where required, taking a key role across 2010 with the implementation of improved industry-wide complaints performance reporting.

PR97 Especially Relevant Events

The launch of Feed In Tariffs, Government consultation on Energy Market Reforms. See the Economic section for more information.

PR98 Changes in electricity and gas usage

UK domestic gas consumption per household was up by around 9%* in 2010. We attribute most of this to weather (average winter temperature was 4.1 degrees Celsius in 2010 versus 6.2 degrees Celsius in 2009). UK domestic power consumption per household was up in the region of 2%* in 2010.

* Figure is an estimate based on estimated DECC and National Grid data for Q1-3 2010, taking into consideration other factors such as weather conditions to extrapolate for the full year.

PR99 External Customer Satisfaction Surveys

See the Customer Service section, External Benchmarks for details.