Transcript 5J.Minors_presentation

Competition, consumers &
affordable prices in liberalised
energy markets
J. Minor, European Commission, Director, Consumer Affairs
IV World Forum on Energy Regulation, 20/10/2009
Why a Commission Service for Consumers?
Single Market Review
Reconnecting with citizens
Evidence-based & outcome-oriented policies
General market monitoring exercise
EU Consumer Policy Strategy 2007-2013
Better monitoring consumer markets and national consumer policies
 Consumer Markets Scoreboard
To empower EU consumers, with real choices, accurate
information, market transparency, effective protection and solid
rights;
To enhance EU consumers‘ welfare, in terms of price, choice,
quality, diversity, affordability and safety;
To protect consumers effectively, by ensuring protection against
risks and threats that cannot be left to individuals to deal with.
Consumer Markets Scoreboard
Screening consumer markets
5 Top level indicators: complaints, prices, satisfaction,
switching and safety
Identify malfunctioning markets for further in-depth analysis
Integration of retail internal market
Fragmentation, Cross border issues
Cross border sales, information, complaints, disputes, enforcement,
consumers and retailers attitudes towards cross border purchases
Benchmarking the national environment
Performance of national policies / instruments
Enforcement & empowerment
2nd Consumer Markets Scoreboard
Markets that are not functioning well:
energy, banking, transport (rail and bus)
Findings based on satisfaction and switching surveys comprehensive
questionnaire, in-depth findings
Follow-up study on retail electricity
Tools to be used:
Surveys, Mystery shopping, Stakeholder consultation
Questions:
Can consumers benefit from a well-functioning market in terms of price,
choice and quality?
Are consumers able to make informed, rational and empowered choices?
Issues:
Information and awareness, switching and comparability of offers, unfair
commercial practices, billing, contract terms, dispute resolution
Results will be published in Autumn 2010
Consumer empowerment in competitive
energy markets: making markets accessible
Competition: unknown territory for most individual
consumers
Consumer participation  empowerment
Information: correct, concise, comparable
Case in point: energy bills
Citizens’ Energy Forum mandate:
Commission led a Working Group on Billing
Participation: ERGEG, consumers (ECCG sub-group on
Energy), industry
Focus: regular paper bills, annual reconciliation statement
Deliverable: Recommendations, good practices
 Commission created model bills
Competitive energy markets & affordability 1
1/3 EU consumers find electricity, gas and water too
expensive (Eurostat)
In some EU countries 1/3 consumers faced difficulties to
keep houses warm (2006)
Low income consumers have a budgetary need to 'pay as
they go' – this has created higher bills in the past (UK)
UK defined fuel poverty & published data: in 2008 more
than 20% households fuel poor (>10% of income on
energy), UK target: no fuel poor by 2016-18
Similar stories for “newer’’ EU Member States
Competitive energy markets & affordability 2
EU law: "reasonable prices" for electricity & gas.
Third Energy Package: Member States must define
reasonable prices & who benefits from special
treatment (social tariff or other)
Commission to make sure that definition will not
impact on competition
Commission to facilitate dialogue, exchange of
good practice, make sure that competition will
not negatively affect consumer welfare
Further input in the framework of Citizens’ Energy
Forum
Information on
Energy and Consumer Bills:
http://ec.europa.eu/consumers/citizen/my_rights/energy_en.htm
Report by the Working Group on Billing:
http://ec.europa.eu/energy/gas_electricity/forum_citizen_energy_en.htm
(click on 2nd Citizens’ Energy Forum, Reports)
Monitoring markets and the Consumer Markets Scoreboard
http://ec.europa.eu/consumers/strategy/facts_en.htm
Thank you
for your attention!