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Consumers Italy presentation


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Lesson to learn from Italy
Challenges, opportunities and risk for consumers

Published in: Government & Nonprofit
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Consumers Italy presentation

  1. 1. HOUSEHOLD IN THE OPEN ELECTRICITY MARKET Lesson to learn from Italy Challenges, opportunities and risk for consumers Riga, 14 Marzo 2014 Fondazione Consumo Sostenibile
  2. 2. OPEN ELECTRICITY MARKET Electric market in Italy Open market, protection market, switching Consumers and open market What is the protection market Cost /benefit of open market Consumers interest Fondazione Consumo Sostenibile
  3. 3. ELECTRIC MARKET IN ITALY Open market: 10 years (2004) Production: -50% gas/oil - 28% renewable -12% import (nuclear)  Cost 1Kwh: 20 cent/euro -50% energy -14% transport (grids) - 14% tax -20% contribution to renewable Regulator: Indipendent Authority Electricity, gas and water. Fondazione Consumo Sostenibile
  4. 4. PROTECTION MARKET & OPEN MARKET  Total customers: 37 million -11,5 million open market (80% of consumption) - 25,5 million protection market (20% of consumption) Retail market (household 27 million) -5 million of open market - 22 million protection market  Switching 300.000 monthly -120.000 from protection to open -30.000 back from open to protection -150.000 inside the open market Fondazione Consumo Sostenibile
  5. 5. WHAT IS THE PROTECTION MARKET Acquirente Unico It is a public company which buy electricity in the open market  In relation of the cost paid the Authority fix the tariffs for the protection market The price tariffs is very to mounts It is a market price in competition with the open market N.B. Acquirente Unico has a rule of information and ADR procedures Fondazione Consumo Sostenibile
  6. 6. COST BENEFIT OF OPEN MARKET Main goals from the open market New investment in gas generation (positive)  better quality/service (positive) Indipendent Regulator (positive) Open market has a free choice (positive) Reduction of cost/ price (negative) Trasparency and consumers realtion (negative) N.B. Consumers on the open market are pain a bill + 12,5% on electricity and +6,5% on gas. Fondazione Consumo Sostenibile
  7. 7. CONSUMERS ARE LESS INTEREST TO OPEN MARKET Too many claims  Too many unfair practices To small the economic benefit  difficult/impossible to compare tariffs Too weak the protection by the Regulator Fondazione Consumo Sostenibile
  8. 8. BILATERAL & ALTERNATIVE DISPUTE RESOLUTION  It’s a rapid procedure to solve the claims In every companies there is an adr agreement The ADR commission (1 from consumers organisation, 1 from industries) The negotation of the ADR solution Written agrrement (positive or negative) For every positive ADR procedures (70/100 euro to the consumers association) Project by Ministry/Regulator (1,5 million to support ADR procedure and consumers information) Fondazione Consumo Sostenibile