Brussels, 05/07/2007 (Agence Europe) - The full opening up of energy markets to competition, effective in virtually the whole EU since 1 July 2007 will only benefit consumers if they play an active part in the market making full use of their rights. For this, they have to know what their rights are. The European Commission, with input from all stakeholders, intends, therefore, to draw up a European Energy Consumers' Charter.
The Charter will set out consumers' rights in electricity and gas supply, will give them clear information to help them choose from among the various suppliers and will guarantee them protection against unfair sales practices which causes them to change supplier or, on the contrary, makes changing difficult.
The electricity (2003/54/EC) and gas (2003/55/EC) directives have already established rights for energy consumers, with safeguards for vulnerable citizens, but it is felt that these rights should be clarified in view of full market opening.
Presenting the initiative to the press, Energy Commissioner Andris Piebalgs said, “The liberalisation and opening of the gas and electricity markets has been effective in EU most member states since 1 July 2007. Freedom of choice is a fundamental freedom, both on the political and the economic levels. All consumers are now free to choose their supplier at the price and with the quality of service they expect. Some are already exercising their freedom in choosing green energy. We must now ensure that this is not just a paper choice, but that it really exists. We cannot do it alone. … The aim of a Consumers' Energy Charter is to inform them of their rights and to ensure that these rights will be guaranteed. If consumers don't exercise their rights, governments will not react as they should, with the measures needed.” Aware of the reproaches that the Commission had not acted earlier, Mr Piebalgs said that initially the Commission was counting on the public service obligations in member states. Currently, only half of member states have set out categories of vulnerable consumers and only five have decided on tariffs for vulnerable consumers. Some member states have no regulation or are doing nothing to improve competition, he said. “The result is that the market is always being held hostage.”
Consumer Policy Commissioner Maglena Kuneva said that this initiative took on the commitment, made by the Commission in its communication of 10 January on an energy policy for Europe, to protect energy consumers, and its desire to develop a European consumers' policy, by concentrating efforts on the service sector. She said that liberalisation was “an opportunity for citizens and for competition which will give the choice between several operators and products.” Ms Kuneva, certain that “green energy will become more and more important”, felt that “the time has come to speak about sustainable consumption. We have to explain to everyone that the reform is not just about energy suppliers, it is about consumers too”. Thus, she addressed a double message, “To suppliers, I say: I have my eye on you, and to consumers: I am going to keep a close watch on the market to make sure the Charter is fully complied with”.
The Commission already has an idea of what should go into this Charter. Consumer entitlements are expected to include: - connection: the right to receive against payment regular and predictable levels of safe and secure electricity and gas services; - supply: the right to change electricity and gas supplier free of charge; - contracts: the Charter lists the minimum elements that every contract with an energy supplier must include; - information: on energy supply, contract conditions, prices and tariffs, energy efficiency measures, and the origin and generation method used for electricity; - prices: energy must be made available at reasonable, easily and clearly comparable and transparent prices; - social measures: to provide vulnerable citizens with minimum levels of energy services (power, warmth and light) in order to avoid energy poverty; - dispute settlement: the right to simple and inexpensive complaint procedures in the event of disputes; - unfair commercial practices: these are prohibited under the EU Unfair Commercial Practices Directive 2005/29/EC which will come into effect on 12 December.
All stakeholders (including consumer representatives, energy regulators, EU Member States and the gas and electricity industry) will be consulted on the proposed elements for a Charter until 28 September. The Commission will then draft the final document based on their input, which interested parties will sign during a formal ceremony in December.
The invitation to participate in the public consultation is available from: http: //ec.europa.eu/energy/energy_policy/consumers/index_en.htm (an)