Anna Colucci Fingrid Current 5.4.2017
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Transcript of Anna Colucci Fingrid Current 5.4.2017
Twitter#FingridCurrent
Fingrid Current 5 April 2017
Presentation recordings are published at: www.fingrid.fi/en/news/events
2 #EnergyUnion
CLEAN ENERGY FOR ALL
EUROPEANS
Anna COLUCCIHead of Unit – Retails markets; coal & oilEuropean Commission – DG ENERGY
CLEAN ENERGY FOR ALL EUROPEANS
3 #EnergyUnion
Unique opportunity to modernise our economy and to
WHY DO WE NEED THIS PACKAGE?THE ENERGY SYSTEM OF TOMORROW WILL LOOK DIFFERENTLY
203050% of electricity to come from renewables
2050Electricity completely carbon free
Thanks to the EU - ambitious energy and climate commitments
With leadership comes responsibility
create the growth and jobs we needboost competitiveness
CLEAN ENERGY FOR ALL EUROPEANS
4 #EnergyUnion
WHAT ARE OUR GOALS?
CREATING JOBS & GROWTH, BRINGING DOWN GREENHOUSE GAS EMISSIONS, SECURING ENERGY SUPPLY
Demonstrating global leadership
in renewables
Delivering a fair deal for consumers
Putting energy efficiency first
CLEAN ENERGY FOR ALL EUROPEANS
5 #EnergyUnion
New Electricity Market Design(including Risk Preparedness)
HOW DO WE GET THERE?
THE RIGHT REGULATORY FRAMEWORK FOR POST – 2020
Energy Union Governance
" In essence the new package is about tapping our green growth potential across the board"Commissioner Miguel Arias Cañete (2016)
Energy
CLEAN ENERGY FOR ALL EUROPEANS
6 #EnergyUnion
A FAIR DEAL FOR CONSUMERS
NEW MARKET DESIGN
• Access to fit-for-purpose smart meters
• Certified price comparison tool
• Clearer energy bills
• Entitle individuals and communities to generate electricity and to consume, store or sell it back to the market
• Easier switching conditions
• Reward demand-response
• Monitoring of energy poverty (governance)
• Information on alternatives to disconnection
• Sound data management
BETTER INFORMED EMPOWERED PROTECTED
CLEAN ENERGY FOR ALL EUROPEANS
7
Better informed consumers - Entitlement to a smart meter with common functionalities
Current situation and problem• While smart meters are key for enabling
consumer participation in the retail energy market they are currently only widely available in 3 Member States
Proposal
• Electricity consumers are entitled to request a smart meter (Art 21)
• Smart meters have to meet common minimum functional requirements (Art19, 20)
Planned roll-out of smart meters by 2020Existing access to smart meters
CLEAN ENERGY FOR ALL EUROPEANS
8
Better informed consumers - Price Comparison Tools and Billing Information
Current situation and problem
• Although comparison tools make engaging in the market quicker, easier and more beneficial, consumers lack trust in them.
Proposal
• EU electricity consumers have free-of-charge access to at least one certified energy comparison tool that meets minimum quality standards.
Current situation and problem
• Consumers report difficulties in understanding their bills, and bills are not effective in providing basic information that could facilitate effective consumer choice.
Proposal
• Suppliers will have to prominently display basic information on every bill, and report energy costs, network charges and taxes/levies in the same way for clarity.
PRICE COMPARISON TOOLS BILLING INFORMATION
CLEAN ENERGY FOR ALL EUROPEANS
9
Empowered consumers - unlocking demand side response and active consumers potential
There is a lot of untapped potential• Only 21 GW activated today, more than 50 GW can be activated by 2030
• 5.6 bn. euro/annum benefit (¾ on the generation side and ¼ in reduced network investments
Price based (Implicit DR): consumers are exposed to electricity price variations and actively adjust their demand. Challenges:
• Full roll out of smart meters only planned in 17 MS
• Enabling technologies not yet widely accessible
• Real time price signals are not passed onto consumers
Incentive based (Explicit DR): consumers are directly paid for adjustments in their consumption
Challenges:• Service providers (aggregators)
are effectively banned in some MS;
• Many markets remain effectively closed to DR.
CLEAN ENERGY FOR ALL EUROPEANS
10
Empowered consumers - unlocking demand side response and active consumers potential
Enable price based demand response
• Accelerated smart meter deployment
• Entitlement to a dynamic electricity price contract
Enable incentive based demand response
• Remove market barriers for aggregators
• Introduce additional rules for flexible markets (electricity regulation)
Enabling tools for active consumers and energy communities
• Entitlement to all consumers to generate, self-consume, store or sell self-generated electricity while ensuring non-discriminatory network tariffs
CLEAN ENERGY FOR ALL EUROPEANS
11
Empowered consumers – Switching fees
Current situation and problem
• ~20% of consumers currently face a €5 to €90 fee for switching
• Existing provisions: Annex I of 2009/72/EC → legal uncertainty
Proposal
• Switching related charges prohibited.
• MS may choose to allow early termination fees on fixed term contracts, but these must be limited in size and contracts containing them must provide consumers with tangible advantages in return.
Real-life examples- €27.90 'service fee'- €27.16 'start up' fee- €27.59 'admin. cost' on first bill- €70 security deposit - €25 yearly charge for new contracts- €20.54 unexplained charge on first bill
Other examples- 'activation fee'- fee for contracts of less than one year
CLEAN ENERGY FOR ALL EUROPEANS
Proposal: All consumer prices shall be freely set by the suppliers after the entry into force of the Directive, butTransition period for vulnerable and energy poor consumers
• A sufficient timeframe (5 years after entry into force) to allow a smooth transition from regulated prices to an adequate protection
Permanent exception in case of extreme urgency• Price regulation for vulnerable household• Subject to scrutiny by the Commission
Key market reform – Phase out of regulated prices
Current situation and problem
• 17 Member States still have some kind of price regulation
• Non regulated MS perform better in terms of number of suppliers, market share of new suppliers, switching rates, consumer satisfaction
CLEAN ENERGY FOR ALL EUROPEANS
13
Protected consumers – Energy Poverty
SHARE OF HOUSEHOLD INCOME SPENT ON DOMESTIC ENERGY
Proposal: • Member States to define criteria
for the purpose of measuring energy poverty, monitor energy poverty and report to the Commission every 2 years.
• Energy Poverty Observatory to support Member States
• Customers in arrears to be given adequate information on alternatives to disconnection.
Current situation and problem• Growing levels of energy poverty
EU wide
• Lack of clarity of the term energy poverty and lack of reliable data to assess the scope of the problem
Energy Efficiency measures required
to target energy poor households under
Energy Efficiency and Energy
Performance of Buildings Directives
CLEAN ENERGY FOR ALL EUROPEANS
14
Protected consumers – Sound data management and level playing field for access to data
Current situation and problem
• Smart metering systems, in 19 Member States more granular consumption data and new services
• Existing provisions in Electricity Directive not fit for new developments
Proposal
• Define responsibilities for parties involved in data handling
• Set principles for granting access to consumer data, with the explicit consent of the consumer, including non-discrimination, transparency and easy access.
Smart meters generate roughly 3000 times as
much information as the analogue meters
CLEAN ENERGY FOR ALL EUROPEANS
15
Distribution Networks
Problem • Current framework at EU or national level does not allow DSOs to be flexible
and cope with variable RES and new loads and does not focus on specific tasks of the energy transition.
• In most cases DSO remuneration favours network expansion solutions• Diversity of distribution tariffs create different market conditions for distributed
resources across EU
Proposal Enabling framework for DSOs to procure and use flexibility
DSO tasks in storage, EVs infrastructure and data management
Cooperation between DSOs and TSOs alongside a EU DSO entity
EU-wide principles for distribution network tariffs
DSOs to prepare multiannual development plans
CLEAN ENERGY FOR ALL EUROPEANS
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Improving the institutional framework – EU DSO entity
Current situation and problem
• Distribution networks are gaining importance; however, DSOs are not formally represented in the EU institutional framework
• Cooperation of DSOs and TSOs on a voluntary basis; however, a closer cooperation also in the context of network codes is required
Proposal
• Adapt the institutional framework to the new realities, including the establishment of a EU DSO entity
• EU DSO entity to work in specific areas and cooperate with ENTSO-E