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How customers benefit from
information on the source of their
electricity –
The case of Flanders
• How is disclosure regulated in Flanders?
• Using the ‘Groencheck’
to inform and empower customers
Katrien Verwimp 20-03-2013
Belgium federal state
• 3 regions: Flanders, Wallonia, Brussels
• 4 Energy regulators:
• Federal level: CREG
• Regional level: VREG, CWaPE, Brugel
• Responsabilities divided between policy levels
• Federal responsabilities
• Regional responsabilities
• RES-E (support systems, GO’s, …)
• Disclosure
2
Disclosure in Flanders
Disclosure of the origin of the electricity supplied in
previous year:
• yearly VREG report and on the suppliers’ invoices
• RES-E and CHP only allowed when proven by GO’s
• Fossil and nuclear: proven by corrected production
data
• Remaining fossil and nuclear is exported to the RE-
DISS residual mix
• RES-E: monthly GO cancelation => ‘Greencheck’
3
Import of Guarantees of
Origin
• Flanders is a net GO importer
• GO import raises the RES-E consumption in
Flanders from 11,5% to 52 % (2012)
• Extra stimulus by partial tax exemption for RES-E
consumption
• Up and untill 2012
• Fallen away starting from 1/1/2013 (R.Decree
27/12/2012)
4
Origin of GO’s cancelled for 2012
supply
VREG • VLAAMSE REGULATOR VAN DE ELEKRICITEITS- EN GASMARKT P • 5
Geografical origin
Technological origin
Why expand the RES-E
disclosure system
Green electricity products are popular
1.Individuals wonder: how is individual RES-E
consumption proven?
2.Public debate on the origin of the RES-E
products
• Domestic vs. foreign RES-E
• Type of energy source
6
Proof of individual RES-E
consumption
• Risk of double disclosure, based on the same GO
• Not at registry level
• Theoretical example of double disclosure:
• Supplier offers 1 ‘grey’ and 1 ‘green’ electricity product
• Assumption: All his consumers have the same
consumption
• He tells 90% of his customers they receive a full RES-E
product
• He tells the regulator that only 10% of his customers use
RES-E, and cancels only GO’s for this amount
• =>The same GO has been double-disclosed 9x
7
Avoid double disclosure
• Link GO cancelation to individual consumers
1. Option of consumer account in GO registry
• Consumer can check himself the amount of GO’s
cancelled for his consumption
• With large number of residential RES-E consumers:
Many accounts = Huge contact management
1. Option of linking individual consumption data
from Grid Operators to GO cancelation
• Works for all consumers
• Demands coöperation of all DSO’s
8
VREG
Monthly ‘GreenCheck’ for
RES-E consumers
• Based on individual acces point and consumption
• Reporting mechanism with cooperation of Suppliers
and Grid operators
• Monthly cancelation of GO’s by the green electricity
suppliers for their customers
• On VREG website: every customer can verify if the
individually consumed RES-E was proven to be RES-
based through GO cancelation by the supplier, using
his individual EAN code
9
Snapshot Groencheck
10
VREG • VLAAMSE REGULATOR VAN DE ELEKRICITEITS- EN GASMARKT P • 11
XXXXXXXXXXXX
12
XXXXXXXXXXXX
How does it work?
Monthly ‘Green reporting
procedure’ (1/4)
• Electricity suppliers
• Report a list of all acces point EANcodes of their RES-E
consumers of the past month of supply N
• Including the %RES-E and the Grid Operator GLN code
• By the 3rd working day of the month N+1
• VREG
• Recombines the lists of all suppliers to lists of RES-E
consumers per Grid Operator
• Sends these lists to the Grid Operators
13
Monthly Green reporting
procedure (2/4)
• Grid Operators:
• Receive the list of all RES-E consumers (on working day 4 of month
N+1)
• Add to every consumer the individual consumption of the past
month N
• Send the completed list back to VREG (by working day 12 of
month N+1)
• VREG
• Calculates the amount of RES-E supplied per supplier in MWh
• =amount of GO’s to cancel per supplier
• Alerts all suppliers of their amount of GO’s to cancel 14
Monthly Green reporting
procedure (3/4)
• Suppliers
• Cancel their ‘quotum’ of GO’s (within 10 working days)
• VREG
• Checks whether suppliers did cancel enough GO’s to
proof their promised RES-E supply
• This % of compliance is added in the webtool
• This webtool is linked to the database of all reported RES-
E consumers for that month N
15
Monthly Green reporting
procedure (4/4)
• Consumer
• Fill in the EANcode of his acces point at
www.vreg.be/groencheck
• Get to see the % of RES-E in his consumption that was
proven to VREG by GO cancelation by his supplier
• = For the past 12 months
• Procedure: BESL-2011-7
16
Benefits of this procedure
• Consumers information
• = key element in liberalized market
• Random inspection of suppliers proportions of
GO cancelation
17
Why expand the RES-E
disclosure system
Green electricity products are popular
1.Individuals wonder: how is individual RES-E
consumption proven?
2.Public debate on the origin of the RES-E
products
• Domestic vs. foreign RES-E
• Type of energy source
18
Next step: expand the
‘Greencheck’
Answer to the public debate concerning the
origin of the RES-E products
• Domestic vs. foreign RES-E
• Type of energy source
19
Info on the origin of the
RES-E products
• Information added in Disclosure report of 2012, per
supplier:
• Plan: integrate this information in the
‘Greencheck’, per electricity product
20
Country of origin Renewable Energy Source
Thank you for your
attention!
• Contact data:
Katrien Verwimp
Mail: katrien.verwimp@vreg.be
Tel: 0032 2 5531377
21

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VREG Greencheck as instrument for disclosure in Flanders

  • 1. How customers benefit from information on the source of their electricity – The case of Flanders • How is disclosure regulated in Flanders? • Using the ‘Groencheck’ to inform and empower customers Katrien Verwimp 20-03-2013
  • 2. Belgium federal state • 3 regions: Flanders, Wallonia, Brussels • 4 Energy regulators: • Federal level: CREG • Regional level: VREG, CWaPE, Brugel • Responsabilities divided between policy levels • Federal responsabilities • Regional responsabilities • RES-E (support systems, GO’s, …) • Disclosure 2
  • 3. Disclosure in Flanders Disclosure of the origin of the electricity supplied in previous year: • yearly VREG report and on the suppliers’ invoices • RES-E and CHP only allowed when proven by GO’s • Fossil and nuclear: proven by corrected production data • Remaining fossil and nuclear is exported to the RE- DISS residual mix • RES-E: monthly GO cancelation => ‘Greencheck’ 3
  • 4. Import of Guarantees of Origin • Flanders is a net GO importer • GO import raises the RES-E consumption in Flanders from 11,5% to 52 % (2012) • Extra stimulus by partial tax exemption for RES-E consumption • Up and untill 2012 • Fallen away starting from 1/1/2013 (R.Decree 27/12/2012) 4
  • 5. Origin of GO’s cancelled for 2012 supply VREG • VLAAMSE REGULATOR VAN DE ELEKRICITEITS- EN GASMARKT P • 5 Geografical origin Technological origin
  • 6. Why expand the RES-E disclosure system Green electricity products are popular 1.Individuals wonder: how is individual RES-E consumption proven? 2.Public debate on the origin of the RES-E products • Domestic vs. foreign RES-E • Type of energy source 6
  • 7. Proof of individual RES-E consumption • Risk of double disclosure, based on the same GO • Not at registry level • Theoretical example of double disclosure: • Supplier offers 1 ‘grey’ and 1 ‘green’ electricity product • Assumption: All his consumers have the same consumption • He tells 90% of his customers they receive a full RES-E product • He tells the regulator that only 10% of his customers use RES-E, and cancels only GO’s for this amount • =>The same GO has been double-disclosed 9x 7
  • 8. Avoid double disclosure • Link GO cancelation to individual consumers 1. Option of consumer account in GO registry • Consumer can check himself the amount of GO’s cancelled for his consumption • With large number of residential RES-E consumers: Many accounts = Huge contact management 1. Option of linking individual consumption data from Grid Operators to GO cancelation • Works for all consumers • Demands coöperation of all DSO’s 8 VREG
  • 9. Monthly ‘GreenCheck’ for RES-E consumers • Based on individual acces point and consumption • Reporting mechanism with cooperation of Suppliers and Grid operators • Monthly cancelation of GO’s by the green electricity suppliers for their customers • On VREG website: every customer can verify if the individually consumed RES-E was proven to be RES- based through GO cancelation by the supplier, using his individual EAN code 9
  • 11. VREG • VLAAMSE REGULATOR VAN DE ELEKRICITEITS- EN GASMARKT P • 11 XXXXXXXXXXXX
  • 13. How does it work? Monthly ‘Green reporting procedure’ (1/4) • Electricity suppliers • Report a list of all acces point EANcodes of their RES-E consumers of the past month of supply N • Including the %RES-E and the Grid Operator GLN code • By the 3rd working day of the month N+1 • VREG • Recombines the lists of all suppliers to lists of RES-E consumers per Grid Operator • Sends these lists to the Grid Operators 13
  • 14. Monthly Green reporting procedure (2/4) • Grid Operators: • Receive the list of all RES-E consumers (on working day 4 of month N+1) • Add to every consumer the individual consumption of the past month N • Send the completed list back to VREG (by working day 12 of month N+1) • VREG • Calculates the amount of RES-E supplied per supplier in MWh • =amount of GO’s to cancel per supplier • Alerts all suppliers of their amount of GO’s to cancel 14
  • 15. Monthly Green reporting procedure (3/4) • Suppliers • Cancel their ‘quotum’ of GO’s (within 10 working days) • VREG • Checks whether suppliers did cancel enough GO’s to proof their promised RES-E supply • This % of compliance is added in the webtool • This webtool is linked to the database of all reported RES- E consumers for that month N 15
  • 16. Monthly Green reporting procedure (4/4) • Consumer • Fill in the EANcode of his acces point at www.vreg.be/groencheck • Get to see the % of RES-E in his consumption that was proven to VREG by GO cancelation by his supplier • = For the past 12 months • Procedure: BESL-2011-7 16
  • 17. Benefits of this procedure • Consumers information • = key element in liberalized market • Random inspection of suppliers proportions of GO cancelation 17
  • 18. Why expand the RES-E disclosure system Green electricity products are popular 1.Individuals wonder: how is individual RES-E consumption proven? 2.Public debate on the origin of the RES-E products • Domestic vs. foreign RES-E • Type of energy source 18
  • 19. Next step: expand the ‘Greencheck’ Answer to the public debate concerning the origin of the RES-E products • Domestic vs. foreign RES-E • Type of energy source 19
  • 20. Info on the origin of the RES-E products • Information added in Disclosure report of 2012, per supplier: • Plan: integrate this information in the ‘Greencheck’, per electricity product 20 Country of origin Renewable Energy Source
  • 21. Thank you for your attention! • Contact data: Katrien Verwimp Mail: katrien.verwimp@vreg.be Tel: 0032 2 5531377 21