Brussels, 13/07/2015 (Agence Europe) - As part of the Summer Package on energy that it will unveil on 15 July, which will include proposals for redesigning the electricity market (see EUROPE 11356), the European Commission is to propose ideas for giving power back to consumers.
In the framework that is described as a “new deal”, the Commission wants consumers to benefit more from the liberalisation of energy markets - which has not permitted a reduction in their energy bills. While wholesale prices have fully benefitted from the effects of liberalisation, retail prices continue to rise “European households often spend more for their energy than for their holidays or going out”, European Commission for Climate Action and Energy Miguel Arias Canete recently stated.
The Commission identifies several obstacles such as the lack of adequate information on costs and consumption, the lack of competition on retail markets, insufficient development of markets for residential energy services, barriers to the right of exercising self-generation or self-consumption, and unequal access to information and high entry barriers for new competitors which slow down the adoption of advanced technologies and practices such as smart appliances. The Commission therefore proposes action on three fronts - empowering consumers, smart homes, and data management
To empower consumers, the Commission is focusing on energy savings through better information. The Commission will therefore assess how consumers could benefit from easier and more frequent access to their consumption data (including the possibility of requesting the installation of smart metering, even if this is not provided for on the national level).
The Commission also wants to guarantee consumers a wider choice, reducing how long it takes to change supplier and enabling a simpler comparison of what is on offer. It also wants to phase out prices regulated below cost except for vulnerable consumers.
In addition, the Commission is focusing on self-generation and self-consumption (which will be discussed in greater detail in a document attached to the communication) and it wants to increase consumers' participation in the market through collective actions such the “covenant of mayors” - the first examples of which in northern Europe show that savings of 15-30% on electricity bills are possible.
In the chapter on consumer protection, the Commission wants to push member states to protect vulnerable consumers and tackle energy poverty - especially through actions to increase energy efficiency and targeted assistance reflecting better practices.
The Commission also wants to accompany the development of smart homes with the standardisation of technologies so that interoperability can be guaranteed. In addition, it wants to complete the design process for smart home management products - which could include labelling or eco-design measures.
The role of distributors is key to this vision in which the consumer is at the centre of an energy system in which renewables are on the rise. The Commission therefore wants to guarantee the stability of the management of distribution networks, enabling distributors to invest and innovate accordingly, via adapted tariffs. The distributors should therefore become neutral market facilitators.
In addition, the Commission is concerned about the lack of data protection for consumers on consumption and billing, and wants to ensure they have control of these. (Emmanuel Hagry)