21st JULY 2015

GREENTUESDAY• Data Management• Legislation• Compliance

energyquote.comA Unique Perspective

EU: European Commission publishes communication on new deal aimed at putting energy consumers at the centre of a thriving and functioning energy systemOn 15 July 2015, the European Commission published a Communication on delivering a new deal for energy consumers. This presents a three-pillar strategy relating to consumer empowerment, smart homes and networks; and data management and protection. The new deal is aimed at putting consumers at the centre of a thriving and functioning energy system.

Current obstacles to consumers fully benefitting from ongoing energy transitionThe Commission has identified a number of obstacles to consumers fully benefitting from ongoing energy transition, meaningfully controlling their consumption and lowering their bills. These include:

• The lack of appropriate information on costs and consumption, or limited transparency in offers.

• The increasing proportion of network charges, taxes and particularly levies in the average final household electricity bill.

• Insufficient competition in many retail markets, a lack of reward for active participation, and difficulties in switching act as disincentives.

• Insufficiently developed markets for residential energy services and demand response, which narrow consumers’ choices.

• Restrictions on consumer’s ability to engage in self-generation and self-consumption, which reduces potential gains to them.

• Unequal access to information and high entry barriers for new competitors, which slow down the adoption of available advanced technologies and practices.

A Unique Perspective | Green Tuesday | 21.07.2015

On 15 July 2015, the European Commission published a Communication on delivering a new deal for energy consumers

The Commission has identified a number of obstacles to consumers fully benefitting from ongoing energy transition

Insufficiently developed markets for residential energy services and demand response, which narrow consumers’ choices

energyquote.com

A Unique Perspective | Green Tuesday | 21.07.2015

energyquote.com

Next steps: a new deal for energy consumersIn this context, the Commission has developed a three-pillar strategy to deliver a new deal for energy consumers:

Consumer empowerment

• To help consumers understand their energy bills, the Commission will, together with national regulators, assess how the clarity and comparability of the content of bills for consumers could be increased. This should lead also to better consumer awareness of the individual components of energy prices and bills, including through better transparency of network charges, taxes and levies.

• Consumers should be free to choose their preferred form of active participation in energy markets. Relevant issues are:

o Switching suppliers.

o Realising the value of flexibility through demand response.

o Reducing energy bills through self-generation and consumption.

o Increasing consumer participation through intermediation and collective schemes.

• The Commission intends to assess the implementation of existing consumer rights and provide a more detailed guidance in collaboration with consumer organisations and regulators.

Smart homes and networks

• For both consumers and the energy system to get the full benefit from new technologies, smart metering systems must be fit for purpose in terms of the functionalities they offer. 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.

The Commission has developed a three-pillar strategy to deliver a new deal for energy consumers

Consumers should be free to choose their preferred form of active participation in energy markets

The deployment of the advanced metering infrastructure should guarantee technical interoperability

A Unique Perspective | Green Tuesday | 21.07.2015

energyquote.com

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.

UK: Two key Conservative Party election manifesto pledges introduced in Parliament as part of the Energy Bill 2015-16On 9 July 2015, the Energy Bill 2015-16 was introduced in the House of Lords. It is expected to receive Royal Assent in the first half of 2016.

The main elements of the Energy Bill 2015-16 deliver on two key Conservative Party election manifesto pledges to:

• Devolve consent for large onshore wind farms over 50 megawatts (MW) from the Secretary of State to local planning authorities (LPAs). A related provision will also close the Renewables Obligation (RO) to new onshore wind projects from April 2016 (a year earlier than expected).

• Establish the Oil and Gas Authority (OGA) as an independent regulator of the oil and gas industry. This will implement the 2014 Wood Review on how to maximise UK offshore oil and gas recovery and improve regulation of the industry.

An important part of value in the future energy market will stem from large data flows

On 9 July 2015, the Energy Bill 2015-16 was introduced in the House of Lords and is expected to receive Royal Assent in the first half of 2016

Need more info?

Email: n.chlupka@energyquote.com

or call Niels Chlupka on: +44 (0)20 7605 2362

© EnergyQuote JHA. All rights reserved.EnergyQuote JHA is the trading name of Energy Management Brokers Limited (Registered No: 2500956).Registered Office: 66 Hammersmith Road, London, England W14 8UD.EQ0277.07.2015.

energyquote.com