A week after presenting its ‘AccelerateEU’ plan to tackle the surge in gas and oil prices caused by the war in the Middle East (see EUROPE 13854/1), the European Commission issued four more specific recommendations to the Member States on Thursday 30 April. They aim to better protect citizens, particularly the most vulnerable households, from the energy crisis.
The first, and most dense of these four non-legislative texts, deals with the increased risk of energy disconnection. This phenomenon, in which households are deprived of access to gas or electricity following non-payment of a bill, threatens “the right to a decent standard of living”, worries the Commission. The most modest households, or those “from the middle class”, who spend “a disproportionately higher share of their income on energy” are at the forefront, notes the document.
Early signals within households. The Commission recommends that the EU27 encourage suppliers to “detect early signals”, such as “arrears” in payments, or a pattern of “unusual consumption”. In the Commission’s view, energy suppliers have “a crucial role to play in protecting vulnerable customers and preventing blackouts”.
In particular, they are responsible for better informing customers about the “alternative measures” that can be taken to avoid this situation (“pre-payment systems, energy audits, alternative payment plans, debt management advice, moratoria on [energy] cuts”).
Capitals are also asked to ensure that this type of disconnection does not occur when an “invoice is formally contested (...)” or “when a payment plan is being negotiated (...)”.
In addition, “to protect customers (...), legislative measures may include bans on seasonal disconnection”, the Commission continues to argue, in anticipation of the coming winter.
Public money can also be mobilised, but sparingly. “In certain specific circumstances and where there is clear targeting of vulnerable households, direct public support (...) is an important measure to help vulnerable customers manage their bills (...)”, it is explained. However, the vast majority of the budgetary support measures announced by the EU27 since the start of the crisis have not been targeted in this way, according to the Bruegel think-tank (see EUROPE 13858/22).
In addition, the Commission recommends tackling the “roots of energy poverty” with “long-term, structural measures” to promote energy efficiency and access to renewables.
Another part of the plan concerns the “fair and gradual phasing out of [the use of] natural gas” for heating buildings. The solution: “give priority to energy savings, building renovation, and clean heating solutions”.
These are all “effective measures to protect (...) people in energy poverty (...)”, the institution reiterates. However, “ill-prepared, poorly communicated, or poorly implemented transition processes risk generating social resistance and mistrust of the benefits of electrification and energy independence”, the text warns.
The second recommendation is designed to help consumers choose the best energy deals. According to the Commission, the information on the various contracts presented to them should be standardised for maximum clarity in each member country. The Commission is therefore publishing a new guide to help countries that have not yet done so to achieve the same standardisation.
“Behavioural research shows that consumers want simplified offers (...) and prefer information to be presented in a standardised way, using an identical structure and highlighting the essential elements, in particular the total price, the duration of the contract and the main terms and conditions (...)”, insists the Commission.
“This makes it easier to compare offers, change suppliers more quickly and reduce costs, while making the market more competitive and transparent”, the institution continues.
The third text deals specifically with the possible bankruptcy of energy suppliers. Addressed to the national authorities, and in particular to the regulators of these markets, the recommendation aims to prevent this risk and, where appropriate, to minimise the negative effects on customers.
Finally, the fourth and last document advocates “supporting the development of energy communities and maximising the potential of self-consumption”. A 2019 Directive (2019/944) on the Common Rules for the Internal Market in Electricity “requires Member States to establish a right to energy sharing” for the benefit of households, SMEs or public bodies, the text recalls.
“Implementing this right is essential to unlock new economic models, stimulate local investment and improve the flexibility of the system”, the Commission argues. However, the institution deplores the fact that there are still too many barriers in the EU27, particularly with regard to financing, the granting of permits, access to the network, and, more generally, administrative complexity. (Original version in French by Clément Solal)