Citizens' Energy Forum 2013 and Energy Retail
in 2014
Jan Panek, Head of Unit ENER B3
1
Citizens' Energy Forum 2013: London, 16-17 December (I)
.
Plenary Sessions
»
High-Level Panel Discussions
• Is the IEM Working For Consumers?
• Involving Consumers in the 2020 Vision (EESC/CEER/BEUC)
»
Reporting Session
• ACER/CEER Annual Monitoring Report 2012
• Vulnerable Consumers Working Group – Guidance Document
• E-billing and Consumer Data Working Group - Report
2
.
Citizens' Energy Forum 2013: London, 16-17 December (II)
Break-out Sessions:
»
Active Consumers
• Consumer Engagement
• Demand Response
• Data privacy
»
Effective Governance
• Collaborative Enforcement
• Energy Efficiency and Energy Poverty
• DSOs' Role in Evolving Retail Markets
3
.
Citizens' Energy Forum 2013: London, 16-17 December (III)
Conclusions:
»
Implementing EU Regulatory Framework
• Collaborative enforcement
• Price transparency and comparability
• RASP (reliability, affordability, simplicity, protection/empowerment)
»
Consumer Engagement and Empowerment
• Role of collective initiatives: switching, demand-side participation
• WG on consumers as market agents
»
Consumer Information, Rights and Protection of Vulnerable Consumers
• E-billing and Vulnerable Consumers reports
• Consumer Awareness about Rights
• Data Security, Privacy Protection
»
Role of Market Players
• Cost-efficiency and consumer interest in DSO operations
• Facilitation of new services and market entrants
4
Vulnerable Consumer Working Group – Guidance Report
..
.
WG Launched in March 2012
Membership:
»
»
»
»
NRAs/CEER + Ministry representatives
Consumer associations, NGOs + ombudsmen
Industry representatives
Academia
Actions
»
»
»
»
Establish the drivers of vulnerability and MS measures to address it
Provide guidance for Member States to define VC
Share examples of Member State instruments and practices
Address energy and social policy, incl. energy efficiency measures
5
%
1 in 4
at risk of poverty or social exclusion
6
Energy
Tasking and Process
2012:
Drivers
MS Instruments/Measures overview
2013:
Examples
of Practices
Report: Guidance Document
on Vulnerable Consumers
To assist Member States with:
»
Defining the concept of vulnerable customers
• Existing definitions are based on income, % of income spent on energy
bills, consumer characteristics, household size etc.
»
»
»
Sharing Member State instruments and practices
Designing instruments
Applying instruments
7
Exacerbators
Key Drivers
Drivers of vulnerability table
Market Conditions
Individual
Circumstances
Living Conditions
Social/Natural
Environment
Final energy price
levels
Income level
Under-occupancy
State of economy
Health and disability
Type of heating
system
Climate
Level of competition
IT skills/internet access
Education: literacy/
numeracy skills
Quality of housing
stock
Debt policies
Age
Equipment efficiency
(boilers etc.)
Selling and pre-contractual
practices
Single-parent/ large family/
carer
Location
Bill transparency/
accessibility
Retired/unemployed
Tenancy
Governance
(local/regional/
national)
Social inclusion
Available payment methods
Inclusiveness of corporate
system designs and service
provision
Immigrant or national/ethnic
minority
Prepayment meters
8
Contents of Guidance Document on Vulnerable
Consumers
»
»
»
»
»
»
»
»
»
Law (3rd Energy Package, Energy Efficiency Directive), ADR
Work undertaken by DG ENER, DG SANCO and CEER
Mix of social and energy policy
Key drivers and exacerbators of vulnerability
Examples of Member State instruments and practices
Energy efficiency, heating and cooling
Funding mechanisms
Enabling demand response
Stakeholder recommendations
9
Recommendations
»
Review policy mix to ensure best combination of social,
energy, housing etc. is in place. Focus on long-term
prevention rather than short-term support
»
Invest in energy efficiency measures to reduce bills, improve
health, generate employment and meet CO2 targets
»
Targeted social tariffs and direct payments in preference to
regulated prices for all household consumers
»
»
»
Direct payments may encourage energy-efficient behaviour
»
Improve the role/interaction of stakeholders: Government,
regulators, industry, consumer associations, ombudsmen etc.
Industry to provide accessible information in different formats
Empower consumers by demand response, information
provision, etc.
10
Examples of Member State instruments and Practices
»
»
»
»
»
»
»
»
Avoid (winter/summer) disconnections
»
»
Fuel Poverty Observatory
Subsidies for energy efficiency measures
Encourage landlords to invest in housing stock improvements
Supplier of last resort
Social tariffs and direct energy payments
Support with payment planning
Regulation of telephone sales and door-to-door selling
Bills in different formats e.g. large print; send to
friend/neighbour
NRA reviews to monitor number of disconnections etc.
11
Road Ahead in Energy Retail
Strengthen Consumer Power
•
•
•
Rights
Competition
Value to Consumer Participation
Promote modern,
intelligent grids
Facilitate new technologies
and services
Public Consultation:
http://ec.europa.eu/yourvoice/ipm/forms/dispatch?form=2013retailmarket
12
Energy
Retail Market Design Issues – Public Consultation
Market Functioning and Consumer Participation
• Consumer Choice and Control – Ease of Switching
• Information Availability and Transparency
• Price Formation and Composition
Market Structure
• Effective and Efficient Competition
• Open and efficient networks - incentives
• Data Management and DSO Role(s)
Demand-side Participation
• Role and Value of Flexibility and Demand Participation
• Incentives for service and product innovation
• Role of technology – smart meters and appliances
13
THANK YOU
FOR YOUR ATTENTION !
Documents:
http://ec.europa.eu/energy/gas_electricity/forum_citizen_energy_en.htm
14