The document discusses rules for empowering energy consumers and the transition to a smart energy system. It summarizes key points from the "Winter Package" which reinstates and establishes new rights for consumers, including the right to choose suppliers, conclude contracts with aggregators, access dynamic pricing contracts and smart meters, and participate in local energy communities. The document notes this enhances rights for all consumers and removes obstacles for their active participation. However, it cautions that member states have flexibility in market design and stable, predictable regulation is still needed as roles change and transparency is key.

1. Radical innovations in the energy sector:
An assessment of the Winterpackage and
the empowerment of the energy consumers
in a Smart Energy System
Prof. dr. S. Lavrijssen
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2. International and EU Climate goals
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3. Energy transition needs new rules
Law lagging behind (regulatory disconnection)
Prosumers Flexibility
Aggregators D
Block chain
Demand response
P2P trading
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4. Energy transition needs new rules
New roles and responsibilities market players
Volatile energy supply
Peak loads (storage, EV charging units)
DSOs are neutral market facilitators
local flexibility markets and local
congestion management
New relations DSOs vis-à-vis consumers and DSO vis-à-vis TSOs
Retail market requires adaption regulation; abolishment unnessecary
regulatory burdens prosumers
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5. Reinstated and new rules for consumer
empowerment in Winter Package
1) The right to free choice of supplier (existing right; Article 4);
2) While respecting contractual obligations, right to change supplier, within three weeks, without any switching related fees being
charged (renewed; Article 12);
3) The right to conclude a contract with an aggregator, without the consent of the final customer’s supplier (new; Article 13);
4) Basic contractual rights (renewed: Article 10);
5) Entitlement to a dynamic electricity contract, meaning an electricity supply contract between a supplier and a final customer that
reflects the price at the spot market or at the day ahead market at intervals at least equal to the market settlement frequency (new;
Article 11);
6) Consumers have access, free of charge to at least one certified price comparison tool (new; Article 14);
7) Frequent billing and billing information. Information in bills shall be correct, clear, concise and presented in a manner that
facilitates comparison (reinstated, specified; Article 18);
8) Final consumers are entitled to generate, to store, consume and sell self-generated energy, without being subjected to
disproportionately burdensome procedures and non-cost reflective charges (new; Article 15);
9) Ensuring the rights of Local energy communities to participate in the energy market as final consumers, generators, distribution
system operators or aggregators (new; Article 16);
10) Entitlement to a smart meter, under fair and reasonable conditions (new; Article 21).
11) Right to out-of-court dispute settlement (updated: Article 26).
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6. Some highlights Winter Package
Concept of active consumer
Rights for active consumers
Entitlement dynamic price contract
Smart meter Rights of local energy
communities
Recognition new role DSOs
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7. What to expect of new rules and consumers?
Status quo bias
Loss averse
Bounded rationality
Information paradigm time-varying discounts
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No homo
economicus

8. Regulation: User friendly and high quality
information
Information should be necessary and sufficient (Oehler & Wendt 2016).
Consumer trust: Transparency, accuracy, clarity, verifiability and fit
personal needs
Education, disclosure standards
Smart meter with feedback tool
Independent price comparison tools
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9. Other issues
Retail market: How to ensure Universal service obligations in P2P markets?;
Distribution system operation:
* Delineation DSOs core and non-core tasks (Lavrijssen et al 2016);
* How to regulate the network tariffs?
– Fixed tariffs, capacity usage based tariffs, energy usage based, time of use
tariffs, interruptible tariffs
– Different cost and benefits
– Future of network regulations?
Procedural consumer empowerment; right of initiative (Lavrijssen 2016);
Institutional design: independent interdisciplinary market authority.
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10. Observations
• Transparency of new roles and responsibilities;
• Enhancement of rights/empowerment all (active) consumers;
– Abolishment of legal obstacles for active consumer participation in
Smart Energy System;
• Proof of the pudding is eating it:
• Long lasting political negotiation process;
• MS have considerable leeway in desiging markets and
institutions;
• Stable and predictable regulatory framework;
• Legislation not set in stone; flexibility for independent NRAs;
• Sector specif regulation/consumer protection provisions will
gradually diminish.
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