delivering a new deal for energy consumer

Delivering a new deal for energy consumers

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions

Crowdsourcing Week 22.10.2015

Eero Ailio, Dep Head of Unit Directorate-General for Energy

Energy Union Summer Package

Market Design Initiative "New Deal" for Energy

Consumers including Best practices on

energy self-consumption

ETS reform Energy Labelling

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Energy

New deal for Consumers – why?Previous legislative packages opened up markets• Competition, unbundling, regulatory oversight..• Consumer protection, switching - traditional markets Intermittency, technology, electrification changed game• Need to better connect wholesale & supply vs retail & demand• New services, products in open markets

Energy challenges to headlines• Too big for supply to solve

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Source: Directorate-General for EnergySource: Directorate-General for Energy4

Wholesale-retail price disconnect

Falling wholesale prices……but rising retail prices.


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Customer satisfaction below average

DG SANCO Consumer Scoreboard 2014

Energy

Energy poverty


New deal for consumers - ContextEnergy Union "with citizens at its core, where citizens take ownership of the energy transition, benefit from new technologies to reduce their bills, [and] participate actively in the market"

Key obstacles at present:• Lack of info on costs & consumption• Limited transparency in offers• Impediments to self-generation/self-consumption• Low incentives for consumer action → poor competition• Increasing network charges, taxes and levies • Underdeveloped energy services and demand response• Slow uptake of advanced technologies


Empowerment (1) Better information on opportunities to save money– Frequent, reliable information on consumption, costs and

energy sources– Transparent, competitive and comparable offers– Rewards

Wider choice of action:– Simple, reliable switching – Demand response, self consumption (best practice)– Intermediaries, collective schemes/cooperatives


Empowerment (2) Updated consumer rights & protection

– Collaboration of competent authorities– targeted protection of vulnerable and energy poor (social

policy/EE)


Smart homes and grids • Enablers of energy transition, shift toward home

• Interoperable smart home appliances and components• Fit-for-purpose smart metering• Innovation-friendly, cost efficient and effective networks


Data

• Consumption, metering data 100% under consumer control• Guarantee of privacy and data protection• Neutrality of data access managers (competition)

Energy

EU guidance on self-consumption – why?• Topic: thanks to cost-effective RES technologies, consumers can save money by

generating their RES energy and selling surplus electricity into the grid

• Objective: identify best practice for promoting cost-effective self-consumption

• Scope: micro and small-scale renewable energy (below 500 kW)

Example of daily self-consumption in an SME

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• The fight against climate change will not be won or lost in diplomatic discussions in

Brussels or in Paris. It will be won or lost on the ground and in the cities where most

Europeans live, work and use about 80% of all the energy produced in Europe.

• Jean Claude Juncker


New: mitigation + adaptation+ access to energy, 2030

Energy

EU funding: Horizon 2020• 16 B€ for research and development (2016-2017) • Incl. 232 M€ for Smart and Sustainable Cities to better integrate environmental,

transport, energy and digital networks in EU's urban environments

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Community energy initiatives, cooperatives

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http://rescoop.eu/

European Crowd funding platform RES

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« Booking.com » RES marketplace

14 partners 11 countries

http://citizenergy.eu/citizenergy/site/home

Energy

Thank you

Energy

• Consumers right to renewable energy self-consumption and distributed storage

• Preference to be given to direct self-consumption over injection into the grid of non-consumed renewable electricity

• Limiting net-metering schemes to phase-in periods and regular review in a transparent and predictably way

• Avoidance of retroactive changes to existing self-consumption projects to guarantee investment security.

• Tariff frameworks may be adjusted: result is higher fixed charge but variable charge for fixed cost recovery retained for efficiency reasons

• Ensuring predictable conditions by announcing caps of installed capacities after which grid cost exemption are revised.

• Giving the right market signals through variable tariffs

Selected best practices on self-consumption

Energy

Follow up of Consumer communicationImpact assesments together with Market Design initiative• Further studies on market linking, access to variable prices and

enablers for consumer engagement and innovation• MD consultation

Legislative work end 2016 • Linkages to EED and RED revisions 2016 Local community action• Covenant of Mayors, Mayors Adapt, Smart Cities

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delivering a new deal for energy consumer

Environment