Annexes to COM(2015)339 - Delivering a New Deal for Energy Consumers - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2015)339 - Delivering a New Deal for Energy Consumers. |
|---|---|
| document | COM(2015)339  |
| date | July 15, 2015 |
With more options and offers, consumers need even greater assurances that they enjoy effective protection from unfair commercial practices. Authorities investigating such practices and complaints in the energy sector could benefit from closer cooperation with their counterparts in other Member States.
Energy poverty is another important issue for Member State action, one where social and energy policy measures meet. Energy poverty must be tackled in the wider context of social security, yet without ignoring the need for targeted, effective assistance reflecting best practices in the energy field. 17
Work on best practices undertaken with stakeholders in the Citizens' Energy Forum 18 has highlighted that energy efficiency improvements tend to be the best long-term solution to energy poverty. This should be reflected in Member States' actions to fulfil their obligations under EU legislation to reduce consumer vulnerability and to address energy poverty. 19 Here the Citizen's Energy Forum facilitates the exchange of best practice on the most effective assistance, first and foremost through energy efficiency.
To facilitate Member States to meet their obligations in this respect and to increase transparency, the Commission will consider how to improve EU-wide data collection and monitoring of energy poverty while ensuring the security, privacy and protection of personal data. Common minimum criteria could be considered for the identification of consumer vulnerability 20 and energy poverty.
Making smart homes and networks a reality
Smart technologies for the grids and the home should simplify consumer involvement in the new retail market and not create burdens. Integrated automated solutions can enable and simplify consumer action by connecting smart metering systems with smart home energy management systems, and smart appliances which make it simple to manage consumption, participate in demand response, or match consumption with their micro-generation as closely as possible according to energy price information. Such smart technologies will also facilitate the introduction of electric vehicles.
For both consumers and the energy system to get the full benefit from these technologies, the smart metering systems to be installed must be fit for purpose in terms of the functionalities they offer. 21 Furthermore, the deployment of the advanced metering infrastructure should guarantee technical interoperability as well as consumer access to their consumption data via an open standard non-proprietary interface. 22
European standardisation bodies 23 have already delivered a complete set of standards for smart meters and for the overall architecture and individual components of smart grids, covering both technology and communication issues (i.e. protocols for exchange of information). The Commission will follow the implementation of these standards closely and will analyse whether the European standards for smart grids and smart metering systems, as well as the recommended functionalities for the latter, are consistently applied to ensure that they deliver the desired functionality and interoperability.
Standards and interoperability are important also for the in-home communication between a smart appliance and energy management systems so that demand-response-ready, in-home equipment can be easy to install and operate. Industry needs to finalise and apply such standards 24 quickly and should be supported in this. Synergies with other domestic systems (e.g. water supply) should also be sought to allow smart appliances optimise also their consumption.
EU funding and financing will continue to be used for research and demonstration into smart home and smart grid technologies, and their security, to boost the international competitiveness of EU firms in this high-value sector.
Furthermore, managing network investments and operations cost-effectively in the new circumstances will be crucial. Remuneration schemes for distribution system operators should be cost-reflective and also incentivise them to cost-effectively engage in innovative network development solutions and act as neutral market facilitators when responsible for data handling.
Member States and the industry should make full use of the European Structural and Investment Funds and the European Fund for Strategic Investments to co-finance smart technology deployment. Investments in the smart energy technology and research, including through the Horizon 2020 programme, will carry multiple parallel benefits by boosting European competitiveness in high-value industrial sectors as called for, inter alia, in the Digital Single Market.
The Commission will, through collaboration with the Council of European Energy Regulators and the Agency for the Cooperation of Energy Regulators ensure that national regulatory authorities' approaches to the regulation of distribution system operators incentivize innovation and cost-efficiency as well as transparency of the quality of energy distribution operations.
Special attention to data management and protection
An important part of value in the future energy market will stem from large data flows and the wider integration of information and communication technology into energy systems. Therefore, the data collection and processing party in the context of smart metering systems or other services empowering consumers to act should provide direct access to these data to the customer and any third party designated by the consumer. Access should be effective and non-discriminatory. 25 This is essential where the metering or billing entity is also providing other services in the market. While data handling can follow different models 26 , the neutrality of the entities managing data access is of the utmost importance.
For value-added services, only third parties authorised by the consumer must have access to consumer's consumption and billing data. As part of the Digital Single Market Strategy, the Commission will propose in 2016 a European "Free flow of data initiative" 27 where ownership, interoperability, usability and access to data (including energy data) will be considered.
The energy sector must remain at the forefront of protecting data security as well as privacy and data protection of all consumers.
The Commission proposals for the Network and Information Security Directive and for a General Data Protection Regulation, both currently under discussion, address the emerging risks with data handling. In anticipation of such an evolution in the general regulatory framework on data security and privacy protection, the Commission has been working on the relevant sector-specific tools with stakeholders from the energy sector.
In October 2014, the Commission adopted a Recommendation 28 which provides guidance to Member States and industry on how to carry out an impact assessment of data protection, allowing them to anticipate potential impacts on the rights and freedoms of data subjects and implement stringent safeguards. 29 Following the Recommendation will allow the energy sector to be at the forefront of data protection in the most unbureaucratic and cost-effective manner.
3. Conclusion and next steps
Delivering the New Deal set out in the Energy Union Strategy means putting consumers at the centre of a thriving and functioning energy system. The steps to achieve this can be summarised in the following ten points:
1. Providing consumers with frequent access, including in near real-time, to partially standardised, meaningful, accurate and understandable information on consumption and related costs as well as the types of energy sources.
2. Making switching suppliers quick and simple, enabled by transparent and directly comparable offers from competitive suppliers and not hampered e.g. by switching fees.
3. Ensuring that consumers remain fully protected in the new energy market, including against unfair commercial practices.
4. Providing consumers with possibilities to become active energy players and gain from action, for example adjusting and reducing their consumption as prices evolve, helping balance out renewable energy variability by embracing demand response or producing or storing energy.
5. Keeping consumption/metering data under the consumers' control; where consumers grant other parties (suppliers and intermediaries) access to their data, their privacy, the protection and the security of their data must be guaranteed.
6. Providing consumers access to competitive and transparent market-based offers, while giving consumers in vulnerable situations and/or facing energy poverty targeted and effective assistance reflecting best practices and contributing to energy efficiency and savings.
7. Providing consumers the option of participating in the market through reliable intermediaries, collective or community schemes. These intermediaries need to have fair access to the markets and consumption data and be monitored in the same manner as suppliers.
8. Making sure smart home appliances and components are fully interoperable and easy to use and smart metering systems fit for purpose with the recommended functionalities to maximise their benefit to consumers.
9. Ensuring cost-effective and stable network operation; ensuring non-discriminatory handling of metering data with potential commercial value by Distribution System operators or any other responsible entity.
10. Strengthening the link between research, innovation and industry for developing international competitiveness in smart home and smart grid technologies, in cooperation with all market players.
Existing legislation at EU and national level, and effective regulatory oversight provide many of the tools to realise this. Action is needed at Member State level, and collaborative initiatives of the industry, consumer organisations and national regulators will also have an important role to play in the effective governance of the Energy Union. Upcoming reviews of existing legislation (the Energy Efficiency Directive, the Energy Performance of Buildings Directive, and the Renewable Energy Directive), the Network Codes and the planned new market design initiative, and their impact assessments, will provide the opportunity to identify where action is required at EU level in order to deliver a new deal for the consumers. The revision of the energy efficiency labelling directive is a first step to help consumers in making informed choices to reduce their energy bills.
(1)
COM(2015) 80final
(2)
http://ec.europa.eu/energy/en/consultations/consultation-retail-energy-market
(3)
Smart Grids Task Force; Citizens' Energy Forum and its expert groups on Vulnerable Consumers and on Consumers as Energy Market Actors; Energy Sub-Group of the European Consumer Consultative Group.
(4)
Sources: Energy prices and costs in Europe, COM(2014) 21 /2, 29.1.2014, Energy Efficiency and its contribution to energy security and the 2030 Framework for climate and energy policy, COM(2014) 520 final, 23.7.2014. These and other issues (like the synergies between electricity and heating & cooling networks) will be addressed in the up-coming European's Union Heating and Cooling Strategy and in the review of the Buildings Directive.
(5)
Source: Annex to the Impact Assessment for the Energy Efficiency Directive, SEC(2011) 779 final, 22.6.2011
(6)
Study on “Reducing energy consumption in buildings with ICT SMART 2013/0073”.
(7)
Smart meter is an electronic system that can measure energy consumption, providing more information than a conventional meter, and can transmit and receive data using a form of electronic communication; cf. Art. 2.28 of the EED 2012/27/EU
(8)
"Benchmarking smart metering deployment in the EU-27 with a focus on electricity" (COM(2014) 356): 16 Member States have committed themselves to installing 245 million smart meters worth some €45 billion by 2020.
(9)
Sweden, Italy, Finland, Malta, Spain, Austria, Poland, UK, Estonia, Romania, Greece, France, Netherlands, Luxembourg, Denmark, Ireland, and Latvia
(10)
http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/docs/consumer_market_brochure_141027_en.pdf and http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/Publication/ACER_Market_Monitoring_Report_2014.pdf
(11)
Council of European Energy Regulators.
(12)
e.g. such as already foreseen under Article 3.9(a) and (b) of Directive 2009/72/EC
(13)
https://ec.europa.eu/energy/sites/ener/files/documents/2012111314_citizen_forum_meeting_working_group_report.pdf ; https://ec.europa.eu/energy/sites/ener/files/documents/20131219-e-billing_energy_data.pdf
(14)
Fortum 2014, SEAM group 2014 and Thames Valley Vision pilot scheme, Bracknell UK 2013.
(15)
In Finland in 2014 household electricity prices declined 4% in continuous fixed price contracts and ca 10% on the spot-price linked contracts, the cheapest contract category since 2012; Source: Energiavirasto (NRA) 2015.
(16)
In Sweden fixed price contracts still dominate (43% in 2012) but variable ones (27,5%) are gaining ground (+17% y-o-y). The total electricity cost for a customer with a default contract was 50% higher in 2012 compared to a flexible contract. Source: Energi Inspektion Annual report 2013.
(17)
These often include energy-specific actions, such as energy efficiency improvements which can minimise wasteful energy use and make vulnerable consumers' energy bills more affordable.
(18)
See Guidance document on Vulnerable Consumers, November 2013: http://ec.europa.eu/energy/sites/ener/files/documents/20140106_vulnerable_consumer_report_0.pdf
(19)
See 2015 study at https://ec.europa.eu/energy/en/content/energy-poverty-may-affect-nearly-11-eu-population-study
(20)
Ongoing Commission study on Consumer vulnerability across key markets in the European Union: http://ec.europa.eu/chafea/consumers/tenders_2013_cons_08.html
(21)
Commission Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems, of 9 March 2012,
(22)
E.g. a USB interface and data encoded using DSLM/COSEM.
(23)
Comité Européen de Normalisation (CEN), Comité Européen de Normalisation Électrotechnique (CENELEC) and European Telecommunications Standards Institute (ETSI).
(24)
E.g. ETSI/OneM2M, Ontology for Smart Appliances, Energy Labelling.
(25)
Energy Efficiency Directive 2012/27/EU and Commission Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems
(26)
Report at https://ec.europa.eu/energy/sites/ener/files/documents/xpert_group3_first_year_report.pdf
(27)
http://ec.europa.eu/priorities/digital-single-market/
(28)
Commission Recommendation 2014/724/EU on a DPIA Template for Smart Grids and Smart Metering Systems.
(29)
The Recommendation promotes the testing and use of a Data Protection Impact Assessment Template developed jointly between the Commission and industry experts to serve as an evaluation and decision-making tool for entities planning or executing investments in the smart grids sector.