en en draft report - European Parliament

European Parliament
Committee on Industry, Research and Energy
on Delivering a New Deal for Energy Consumers
Committee on Industry, Research and Energy
Rapporteur: Theresa Griffin
United in diversity
MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION ............................................ 3
on Delivering a New Deal for Energy Consumers
The European Parliament,
having regard to the Commission communication entitled ‘Delivering a New Deal for
energy consumers’ (COM(2015)0339),
having regard to the Commission communication entitled ‘Launching the public
consultation process on a new energy market design’ (COM(2015)0340),
having regard to the Commission communication entitled ‘A Framework Strategy for a
Resilient Energy Union with a Forward-Looking Climate Change Policy’
having regard to the Commission communication of 26 November 2014 entitled ‘An
Investment Plan for Europe’ (COM(2014)0903),
having regard to the Commission communication of 15 November 2012 entitled
‘Making the internal energy market work’ (COM(2012)0663),
having regard to the Commission communication entitled ‘Roadmap for moving to a
competitive low-carbon economy in 2050’ (COM(2011)0112),
having regard to the Commission communication of 15 December 2011 entitled
‘Energy Roadmap 2050’ (COM(2011)0885),
having regard to the Third Energy Package,
having regard to Directive 2012/27/EU of the European Parliament and of the Council
of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and
2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC,
having regard to Directive 2009/28/EC of the European Parliament and of the Council
of 23 April 2009 on the promotion of the use of energy from renewable sources and
amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC,
having regard to Directive 2010/31/EU of the European Parliament and of the Council
of 19 May 2010 on the energy performance of buildings,
having regard to Directive 95/46/EC of the European Parliament and of the Council of
24 October 1995 on the protection of personal data,
having regard to Directive 2005/29/EC of the European Parliament and of the Council
of 11 May 2005 on unfair commercial practices,
having regard to Directive 2011/83/EC of the European Parliament and of the Council
of 25 October 2011 on consumer rights,
having regard to its resolution of 19 June 2008 entitled ‘Towards a European Charter on
the Rights of Energy Consumers’1,
having regard to its resolution of 10 September 2013 on making the internal energy
market work2,
having regard to its resolution of 14 March 2013 on the Energy roadmap 2050, a future
with energy3,
having regard to its resolution of 4 February 2014 on the local and regional
consequences of the development of smart grids4,
having regard to its resolution of 10 March 2014 on consumer protection – protection of
consumers in utilities services5,
having regard to its resolution of 15 December 2016 entitled ‘Towards a European
Energy Union’6,
having regard to Rule 52 of its Rules of Procedure,
having regard to the report of the Committee on Industry, Research and Energy and the
opinion of the Committee on the Internal Market and Consumer Protection
Welcomes the Commission’s communication ‘Delivering a New Deal for Energy
Highlights that the ongoing energy transition is resulting in a move away from a
centralised, inflexible, fossil fuel-based energy system to one which is more
decentralised, flexible and renewables-based;
Believes that, in this context, the Energy Union should have the interests of citizens at
its core and should:
a. provide citizens with stable, affordable, sustainable, fair and transparent energy,
energy-efficient products and housing;
b. empower citizens to produce and store their own clean energy, take energy-saving
measures, and become active participants in the energy market through consumer
choice and the possibility of safely and confidently participating in demand response;
c. eradicate the causes of energy poverty;
d. protect consumers from abusive, uncompetitive and unfair practices by suppliers and
enable them to fully exercise their rights;
Texts adopted, P6_TA(2008)0306.
Texts adopted, P7_TA(2013)0344.
Texts adopted, P7_TA(2013)0088.
Texts adopted, P7_TA(2014)0065.
Texts adopted, P7_TA(2014)0342.
Texts adopted, P8_TA(2015)0444.
Believes that, as a general principle, the energy transition should result in a more
decentralised and democratic energy system which benefits society as a whole,
increases the involvement of citizens and local communities, and empowers them to
own or share in the ownership of the production, distribution and storage of energy,
while at the same time protecting the most vulnerable;
Towards a well-functioning energy market benefiting consumers
Considers that the aim of the Third Energy Package to provide a truly competitive and
consumer-friendly retail energy market has not yet been realised, as evidenced by low
levels of consumer switching and satisfaction across the EU, persistent high levels of
market concentration, and the failure to reflect falling wholesale costs in retail prices;
Calls, therefore, on the Commission and the Member States to rigorously ensure full
implementation of the Third Energy Package, and calls for its revision to take account
of the following recommendations:
a. Recommends improving the transparency and clarity of bills, which should include
information on the final price, with an explanation of the different taxes, levies and
tariffs, together with information on the different energy sources and complaint
handling, clear indication of contact points, and information on switching and energy
efficiency measures; insists that clear language must be used, with technical terms
either avoided or clearly explained; requests the Commission to identify minimum
standards in this respect;
b. Recommends that consideration be given to requiring energy bills to include
comparisons of offers in order to enable all consumers, even those without internet
access or skills, to see whether they could save money by switching; believes that
peer-based comparisons should also be included in bills to help reduce energy use;
c. Recommends developing rules for price comparison tools to ensure that consumers
can access independent, up-to-date and understandable comparison tools; believes
Member States should develop accreditation schemes covering all price comparison
tools, in line with CEER guidelines;
d. Recommends that there should be a limited range of standardised tariffs, in order to
facilitate comparison between different suppliers and tariffs and avoid a confusing
array of different tariffs for the same product;
e. Recommends that consideration be given to requiring energy suppliers to
automatically place customers on the most advantageous tariff, based on historic
consumption patterns; notes, given that switching rates are low throughout Europe,
that many households, especially the most vulnerable, are not engaged in the energy
market and are stuck on outdated expensive tariffs;
f. Recommends measures to enable retail prices to better reflect wholesale prices and
thus reverse the trend of an increasing proportion of fixed elements in energy bills, in
particular network charges, taxes and levies, which are often regressive elements;
recommends that such elements be applied progressively or, where, possible funded
from alternative sources;
Insists that the provisions on switching, as set out in the Third Energy Package, should
be fully implemented by Member States, and that national legislation must guarantee
consumers the right to change suppliers in a quick, easy and cost-free way, with no
termination fees or penalties;
Believes that collective switching schemes and campaigns should be promoted in order
to help consumers find a better deal; emphasises that such schemes must be
independent, trustworthy, comprehensive and inclusive, reaching those who are less
engaged; suggests that local authorities, regulators and consumer organisations and
other not-for-profit organisations are well placed to fulfil this role, and that support
from European funds for such activities should be considered;
Insists that the provisions of the directives on unfair commercial practices and consumer
rights relating to doorstep selling, unfair terms or practices and aggressive marketing
techniques be properly implemented and enforced by Member States so as to protect
energy consumers;
Democratising the energy system by helping consumers take ownership of the energy
transition, produce their own energy and become energy-efficient
Believes that local authorities, communities and individuals should form the backbone
of the energy transition and should be actively supported to help them become energy
producers and suppliers on an equal footing with other players;
Considers that access to capital, high upfront investment costs and long repayment
periods represent barriers to the take-up of self-generation and energy efficiency
measures; calls, therefore, for the development of new business models and innovative
financial instruments to incentivise self-generation, consumption and energy efficiency
for all consumers; suggests that this should become a priority for the EIB, EFSI and the
Structural Funds;
Calls for stable and sufficient remuneration schemes to guarantee investor certainty and
increase the take-up of small-scale renewable energy; believes that grid tariffs and other
fees should be non-discriminatory and should fairly reflect the impact of the consumer
on the grid, while guaranteeing sufficient funding for the maintenance and development
of distribution grids; regrets the recent abrupt changes to support schemes in certain
Member States, as well as the introduction of unfair and punitive taxes or fees which are
detrimental to the continued expansion of self-generation;
Recommends reducing to an absolute minimum the administrative barriers to new selfgeneration capacity, and suggests replacing lengthy authorisation procedures with a
simple notification requirement; suggests that the revision of the renewable energy
directive could include specific provisions to remove barriers and promote
community/cooperative energy schemes;
Highlights the need for a favourable framework for tenants and those living in multidwelling buildings, to enable them to also benefit from self-generation and energy
efficiency measures;
Calls on the Commission to step up its support for the Covenant of Mayors, so as to
expand and further develop it as a tool to promote self-generation and energy efficiency
measures, fight energy poverty, facilitate the exchange of best practices between all
local authorities, regions and Member States, and ensure that all local authorities are
aware of the financial support available to them;
Promote the development of demand response management
Points out that to incentivise demand response energy prices must vary between peak
and off-peak periods, and therefore supports the development of dynamic pricing on an
opt-in basis, subject to a thorough assessment of its impacts on all consumers; believes
that dynamic tariffs must be transparent, comparable and clearly explained;
Believes that consumers should have easy and timely access to their consumption data
in both volume and monetary terms, to help them make informed decisions; believes
that where smart meters are rolled out there should be a solid legal framework to ensure
an end to back-billing and a rollout that is efficient and affordable for consumers and is
free of charge for energy-poor consumers; insists that efficiency savings from smart
meters should be shared on a fair basis between grid operators and users;
Emphasises that the development of smart technologies must not leave the most
vulnerable or less engaged consumers behind, nor see bills rise;
Highlights the need to develop smart appliances which automate the management of
energy demand in response to price signals;
Believes that the processing and storage of citizens’ energy-related data should be
managed by neutral entities and should comply with the existing EU legislation, which
lays down that the ownership of all data lies with the citizen and that data should only
be provided to third parties by explicit consent; considers that, in addition, citizens
should be able to exercise their rights to correct and erase information;
Addressing the causes of energy poverty
Calls for the development of a strong EU framework to fight energy poverty, including
a broad, common but non-quantitative definition of energy poverty, focusing on the idea
that access to affordable energy is a basic social right; urges the Commission to
prioritise measures to alleviate energy poverty in upcoming legislative proposals and to
present a dedicated action plan by mid-2017;
Insists that better data availability and collection are essential in order to assess the
situation and target assistance on energy-poor citizens as effectively as possible;
Considers that the Energy Union governance framework should include objectives and
reporting from Member States for energy poverty, and that key indicators for energy
poverty should be developed;
Considers that energy efficiency measures are central to any strategy to address energy
poverty and are much cheaper in the long run than tackling the issue exclusively
through social security policies; calls for action to ensure that energy-efficient
renovation of existing buildings gives priority to energy-poor citizens in the context of
the review of the EPBD; suggests that an objective of reducing the number of energyinefficient homes by 2030 should be considered, with a focus on rental properties and
social housing;
Calls for the revised EED to include a provision for a significant minimum percentage
of measures in energy efficiency obligation schemes targeting low-income consumers;
Calls for EU funds for energy efficiency and support for self-generation to target
energy-poor, low-income consumers and address the issue of split incentives between
tenants and owners;
Believes that well-targeted social tariffs are vital for low-income, vulnerable citizens,
and should therefore be promoted;
Instructs its President to forward this resolution to the Council and the Commission.