marielle liikanen, chair rmf tf camilla egginton – project leader citizens’ energy forum,...
TRANSCRIPT
Marielle Liikanen, chair RMF TFCamilla Egginton – project leader
Citizens’ Energy Forum, London,21-22 October 2010
Customer empowerment through retail market monitoring
23rd Citizens’ Energy Forum, London, 21-22 October 2010
Outline
• Understanding the customer experience• Work process• Current monitoring practices
• 3rd Package requirements• Our recommendations• Adopting ERGEG’s guidelines – how do these affect the customer’s
experience?• Customer satisfaction • Retail market outcomes• Market structure• Market condition and DSO services
• Conclusion
33rd Citizens’ Energy Forum, London, 21-22 October 2010
Customer empowerment through market monitoring
In a well-functioning market, the customer is empowered…
…but how do we measure this?
43rd Citizens’ Energy Forum, London, 21-22 October 2010
ERGEG thought about the customers’ experience
Prices
…which is affected by market outcomes such as…
…and ultimately driven by…(i) Market structure
Choice
Complaints
Enquiries
Consumers may reveal their satisfaction through…
…and(ii) Market condition
No.of suppliers
Market share
Branding
Switching
Disconnection
Maintenance
Repair
53rd Citizens’ Energy Forum, London, 21-22 October 2010
Numerous stakeholders are responsible
Prices
…which is affected by market outcomes such as…
…and ultimately driven by…(i) Market structure
Complaints
EnquiriesChoice
Consumers may reveal their satisfaction through…
…and(ii) Market condition
No. of suppliers
Market share
Branding
Switching
Disconnection
Maintenance
Repair
Consumer Groups
Suppliers
Regulators
Consumers
Consumers DSOs
63rd Citizens’ Energy Forum, London, 21-22 October 2010
Work process
• Internal questionnaire• 11 members, describing national monitoring exercises
• In depth surveys of current monitoring practices • Consumer markets scoreboard (DG SANCO),
National reports, Benchmarking report, The Probe (UK)
• Public consultation• April - June 2010• 28 respondents
• Final GGP• October 2010
73rd Citizens’ Energy Forum, London, 21-22 October 2010
We found monitoring practices vary
Indicator Monitored Not monitored
Customer complaint 10 1
Customer enquiries 7 4
Customer information 6 5
End-user prices 10 1
Retail margin 6 5
Spread price 7 4
Diversity of contracts (offers) 5 6
Regulated end-user prices 7 4
Number of suppliers 11 0
Market concentration 9 2
Branding 3 8
Switching rates 10 1
Renegotiations 1 10
Delays in switching 5 6
Failure to fulfill the switch 6 5
Connections and repairs 8 3
Disconnection rates 7 4
Maintenance services 6 5
Number of NRAs who monitor indicators required by the 3rd Package (electricity)
Source: ERGEG internal questionnaire, based on 11 responding countries
83rd Citizens’ Energy Forum, London, 21-22 October 2010
…especially in light of the 3rd Package
Indicator Monitored Not monitored
Customer complaint 10 1
Customer enquiries 7 4
Customer information 6 5
End-user prices 10 1
Retail margin 6 5
Spread price 7 4
Diversity of contracts (offers) 5 6
Regulated end-user prices 7 4
Number of suppliers 11 0
Market concentration 9 2
Branding 3 8
Switching rates 10 1
Renegotiations 1 10
Delays in switching 5 6
Failure to fulfill the switch 6 5
Connections and repairs 8 3
Disconnection rates 7 4
Maintenance services 6 5
Number of NRAs who monitor indicators required by the 3rd Package (electricity)
Source: ERGEG internal questionnaire, based on 11 responding countries
93rd Citizens’ Energy Forum, London, 21-22 October 2010
Our recommendations
Customer complaints
Customer enquiries
Customer information
End-user prices
Price spread
Available contracts
% on regulated price
No. of active suppliers
Market shares
DSO branding
Switching rate
Renegotiated contracts
Delayed switches
Failed switches
Connection times
Repair times
Disconnections
Maintenance service time & charge
Our consumer-centric framework, category aims and suggested indicators
Derived from the 3rd Package
103rd Citizens’ Energy Forum, London, 21-22 October 2010
…note they come with a health warning
• None should be considered in isolation – results could be misleading– For example, a low complaints level suggests the market is working well –
but if this is combined with low numbers of enquiries, a low switching rate and rising prices, it could equally suggest that consumers are disengaged
• Results should be considered in relation to national circumstances and a qualitative understanding of the market
• Results do not deliver conclusions by themselves – deeper investigation may be required
• The list is not intended to be exhaustive, or prescriptive, and should be tailored to national requirements
113rd Citizens’ Energy Forum, London, 21-22 October 2010
How monitoring empowers the customer
1. Customer complains, enquires or experiences a delayed or failed switch
2. Responsible stakeholder must log the event
3. NRA collects and analyses the data
4. NRA could then consider further monitoring or deeper investigation…
5. …followed by action
1
2
3
4
5
Plus wider monitoring to ensure that the market is functioning well overall
123rd Citizens’ Energy Forum, London, 21-22 October 2010
Conclusion
ERGEG believes that:
• Monitoring which captures:• Customer satisfaction• Retail market outcomes• Market structure• Market condition and DSO services…in a holistic way enables key insights into the issues which may be affecting
market functioning
• Identifying these issues enables targeted action to ensure that the market protects consumer welfare
• Implementing our Guidelines will both aid compliance with the 3rd Package and lead to broader monitoring where this is valuable
Will help NRA to empower the customer and ensure
that the market is functioning well
133rd Citizens’ Energy Forum, London, 21-22 October 2010
Thank you for your attention!
Link to the report (click on the title):
GGP on Indicators for Retail Market Monitoring