How to engage consumers in the energy market? Monika Štajnarová EU Sustainable Energy Week 16 June 2016 BEUC? Bureau européen des Unions de Consommateurs Established in 1962 by 6 consumer organisations 41 member organisations 31 European countries 6/16/2016 2 Energy market r(e)volution Decentralisation Digitalisation Demand response Data protection Storage Smart meters Energy Union Vision Energy Union with citizens at its core, where citizens take ownership of the energy transition, benefit from new technologies to reduce their bills, participate actively in the market, and where vulnerable consumers are protected. Energy services are essential Energy prices are one of the main financial concerns of consumers Services that consumers would certainly pay even faced with financial difficulties => DECO, 2015 Need to address old & new challenges Prices that are competitive & affordable Easily manageable energy markets Comparable offers Understandable bills Smooth switching Fair contract terms & conditions Bundle offers & ‘innovative services’ Unfair marketing practices New technologies (smart meters, connected devices, smart homes) Friendly demand-side response New business models & new market players Towards a consumer-centric energy market Consumers as partners => Changing role of consumers, prosumers Improve consumer trust => Need for truly competitive market which is transparent, easy to navigate; reliable and comparable information is key Better understanding of consumer diversity & behavior is necessary => Nudging consumers to engage; incentivise and provide personalised advice Towards a consumer-centric energy market ‘Do it for me’ => Collective actions, new intermediaries, aggregators Respect consumer’s choice not to play an active role Some consumers will need assistance If consumers are expected to modify their behaviour, they need clear-cut benefits. It must be made easy & accessible for them, advice should be available Energy markets must be inclusive and work for consumer, not the other way around. Demand-side response What is a smart demand response scheme: transparent (simple & clear offers + contracts) voluntary reward flexibility; don’t penalise inflexibility protect personal data Demand response should focus on consumers’ needs & experience => distributional analysis on the impact of ToU tariffs Dedicated approach to self-generation pic: City of Eindhoven Welcome culture for self-generation A ‘bike lane’ for the cyclists of electricity markets: Dedicated long-term strategy Priority grid access and dispatch Fair remuneration Digitalisation of energy sector brings BIG DATA challenge If your shop assistant was an app by the Danish Consumer Council Thank you for your attention www.beuc.eu – [email protected]
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