Delivering A New Deal For Energy Consumer

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Eero Ailio, Deputy Head of Unit, European Commission. Presented at Crowdsourcing Week Europe 2015. For more information or to join the next event: http://crowdsourcingweek.com/

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Delivering A New Deal For Energy Consumer

  1. 1. 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
  2. 2. Energy Union Summer Package  Market Design Initiative  "New Deal" for Energy Consumers including  Best practices on energy self- consumption  ETS reform  Energy Labelling 2
  3. 3. 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 3
  4. 4. Source: Directorate-General for EnergySource: Directorate-General for Energy 4 Wholesale-retail price disconnect Falling wholesale prices… …but rising retail prices.
  5. 5. Source: Directorate-General for EnergySource: Directorate-General for Energy 5 Electricity Postalservices Mortgages Gas Customer satisfaction below average DG SANCO Consumer Scoreboard 2014
  6. 6. Energy Energy poverty
  7. 7. Source: Directorate-General for EnergySource: Directorate-General for Energy 7 New deal for consumers - Context Energy 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
  8. 8. Source: Directorate-General for EnergySource: Directorate-General for Energy 8 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
  9. 9. Source: Directorate-General for EnergySource: Directorate-General for Energy 9 Empowerment (2)  Updated consumer rights & protection – Collaboration of competent authorities – targeted protection of vulnerable and energy poor (social policy/EE)
  10. 10. Source: Directorate-General for EnergySource: Directorate-General for Energy 10 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
  11. 11. Source: Directorate-General for EnergySource: Directorate-General for Energy 11 Data • Consumption, metering data 100% under consumer control • Guarantee of privacy and data protection • Neutrality of data access managers (competition)
  12. 12. 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
  13. 13. 13 • 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
  14. 14. Source: Directorate-General for EnergySource: Directorate-General for Energy 14 New: mitigation + adaptation+ access to energy, 2030
  15. 15. 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 •
  16. 16. Community energy initiatives, cooperatives 16
  17. 17. European Crowd funding platform RES 17 « Booking.com » RES marketplace 14 partners 11 countries
  18. 18. Energy Thank you
  19. 19. 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
  20. 20. Energy Follow up of Consumer communication Impact 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 20

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