EMPOWERING CONSUMERS TO SAVE
ENERGY BY INFORMATIVE BILLING
The regulator’s view
Dirk Van Evercooren
Co-chair of CEER Customer Empowerment Task Force
Final Conference on ENERGY CONSUMER INFORMATION
16 March 2016 - Brussels
Outline
• Background, context and objective of CEER
Position Paper on Well-functioning Retail
Energy Markets
• Customer information (Market Monitoring
Report)
• Changing role for DSOs
2
Background, context and objective
of CEER Position Paper
Background
and context
Objective
• Its origin is in the “Bridge to 2025” and our commitment to develop a
roadmap towards well-functioning retail markets to achieve the CEERBEUC Vision for Europe’s energy customers
• It builds on ACER/CEER recent work (e.g. DSO, Customer data management,
European Gas Target Model, annual Market Monitoring Reports, Price
Comparison Tools)
• It addresses and complements issues raised by the European Commission
in the 15 July 2015 Communication on “Delivering a New Deal for Energy
Consumers in Europe”
• It is a first step in delivering a framework of what characterises wellfunctioning retail energy markets
• It proposes a holistic and forward-looking framework for assessing the
performance of retail energy markets
3
A framework made of 2 high-level
principles, 8 key properties…
1 - Competition and
innovation
There is a high degree of competition
and innovation thrives to the benefit
of consumers. DSOs provide quality
services and facilitate a level playing
field by acting as neutral and efficient
market facilitators
• I. Low concentration relative to their
relevant market
• II. Low market entry barriers
• III. Close relationship between wholesale
and retail prices
• IV. A range of offers, including demand
response
2 - Consumer involvement
Consumers are aware of key features of
energy markets; they are empowered
and are enabled to engage in market
activities through which they can
acquire further trust in the market and
its actors. Energy supply is ensured for
all energy users, and vulnerable
consumers are provided with extra
protection where needed
•
•
•
•
V. High level of awareness and trust
VI. Availability of empowerment tools
VII. Sufficient consumer engagement
VIII. Appropriate protection
4
Key Properties and Metrics
(Demand)
V. High level of awareness and trust: In well-functioning retail
markets, most consumers are aware of the most relevant features
for engaging in and they trust the market
14. Percentage of consumers knowing they can switch supplier * NEW
15. Percentage of consumers who know that DSOs are responsible for the continuity of
supply and - where applicable - metering * NEW
16. Percentage of consumers trusting the energy market
VI. Availability of empowerment tools: The aim of consumer
empowerment is to enable consumers to engage effectively with
the market. Tools to facilitate this engagement should be in place
and should be easily accessible for customers
17. Percentage of consumers having access to at least one independent and verified
price comparison tool * NEW
18. Percentage of consumers having online access to historical consumption information
* NEW
19. Percentage of consumers having access to a (and duration of) standardized supplier
switching process
5
Customer information
(Market Monitoring Report)
Consumers in all MS have various types of information on the energy bill
But in some MS, there still is a lack of information on consumer rights and
empowerment aspects
Types of information on energy bills - by jurisdiction
Source: CEER database, National Indicators (2014)
Customers’ access to information (2)
• Energy prices and source of generation of high interest to many
consumers; explanations wanted
► Cost and sources of energy most prominently differentiate energy
products from a consumer perspective
• Information on cost and sources is available
► At different levels of detail
► Through different market actors (NRA, suppliers, DSOs, …)
► Through different channels (online, bill, print,…)
• NRAs active in informing consumers through different channels
(online, print), but…
► Little knowledge about consumer-friendliness of such information
► NRAs are poorly informed about the quantity and quality of such
information
Source: CEER database, National Indicators (2014)
DSO role is changing…
• Role of DSO
► The traditional role of DSOs
► Future challenges
► CEER conclusions on the future role of
DSOs
• DSOs consumer relation and data
management
► Availability and easy access to data
► Consumer data protection and privacy
• CEER future work
18/03/2016
The traditional role of DSO
Conventional activities of DSOs
• Network planning, development, operation and maintenance
• Connecting users to the network
• Quality of supply and system security at regional/local level
• Technical data management
• Managing network losses (efficiency)
• In several member countries: Metering and consumption data
management and billing of network tariffs
9
New challenges for DSOs
• Changing consumption patterns
► Embedded generation
► Electrical vehicles
► Demand response
• New opportunities for DSFlexibility through technical advances
► Smart meters, data handling and accuracy
► Storage behind the meter
► Smart appliances
• New opportunities through real time monitoring and control
► Use the network more efficiently (communication systems, big data, etc)
► Possibilities to provide system services
• Possible impact
► Change in local congestion patterns
► Reverse flow and quality control
► Revenue uncertainty - less energy and more capacity needs
10
Data management
• NRA or the Member State needs to define clear data management
processes to ensure privacy, security and non-discriminatory
access. Smart meters will produce detailed and verified consumption
data to be used for billing the final consumer
• Real-time consumption data from the house, the smart appliance or
the electric car do not require verification by the DSO: to create a
competitive market for innovative energy services these should be
directly accessible to the consumer or any party upon the consumer's
agreement
11
Key Principles
• Four principles for DSOs activities
► The DSO must run its business in a way which reflects the reasonable
expectations of network users and other stakeholders including new business
models
► The DSO must act as a neutral market facilitator in undertaking its core
functions.
► The DSO must act in the public interest taking account of costs and benefits.
► Consumers own their data and DSOs need to recognise this when handling
data.
• Differences in the number, size, technical characteristics and
activity profile of DSOs
-» No single model for the role of the DSO
Framework – categories of future
DSO Activities
Core regulatory
activity
Grey areas
Competitive nonDSO activity
• Network build
and operate
• Energy
efficiency
• Energy
generation
• System security
• Storage
• Energy supply
• Technical data
• Engagement
with
consumers
• Network Losses
• Flexibility
Flexibility is key
RES curtailment
Smart Meters
Capacity Payments
Anc services
Remove profiles
Balancing
Dynamic tariffs
Within Day
Day ahead
Healthy competition
Monthly/
quarterly
forwards
Networks
Avoiding
Network
Investment
18/03/2016
Reducing
Losses
Local
ancillary
services
Engaging with consumers –
metering and access to data
• DSOs, who have access to data directly from smart meters, have a
special responsibility to act impartially and to make available
necessary data to other parties, while respecting data privacy
legislation.
• CEER believes that DSOs should remain as neutral market
facilitators but that this does not automatically confer the status of
data management coordinator to a DSO
• Individual metering is a basic right of every consumer and
should be sought after in order to induce energy saving behaviour
• Customers should no longer receive estimated energy bills but be
billed based on actual consumption – they should be properly
informed – at least once a month – of actual consumption and costs
18/03/2016
Smart meters, minimum
functionalities and harmonisation
across the EU
• Regulators proposed adoption of at least national standardised
arrangements regarding the content of customer meter data, the
format in which the data is provided to parties and the systems used
for the exchange of this data
• Standardisation would result in significant benefits for consumers
► Greater certainty, efficiency and enhanced competition
► Customers more likely to understand the data, make efficient decisions about their
consumption and be better-positioned to decide about changing tariffs or switching
• Functionalities are crucial for the sound deployment of smart
metering systems and for guaranteeing a minimum level of service to
customers
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Thank you for your attention!
www.ceer.eu