ECRB Activities on Retail Markets Monitoring

Transcription

1 Energy Regulators Regional Association Customers and Retail Markets Working Group Meeting ECRB Activities on Retail Markets Monitoring Edin Zametica, ECRB CRM WG Chair Advisor to the Commission (BIH-SERC) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

2 Energy Community Geographic Scope * This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence. ** 20 of the 28 European Union Member States hold a Participant status to the Treaty. Energy Community = 28 members of the EU and Albania, Bosnia and Herzegovina, FYR of Macedonia, Kosovo*, Moldova, Montenegro, Serbia and Ukraine Participants: Austria, Bulgaria, Croatia, Cyprus, Czech Republic, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, the Netherlands, Poland, Romania, Slovakia, Slovenia, Sweeden and the United Kingdom Observers: Armenia, Georgia, Norway and Turkey (Belarus pending) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

3 Energy Community Objectives The general objective of the Energy Community is to create a stable regulatory and market framework to: Ensure stable and continuous energy supply and attract investments in the electricity and gas sectors Develope alternative sources of gas supply diversification Improve the environmental situation in relation with energy supply in the region Improve energy efficiency, foster the use of renewable energy Increase competition at regional level In short to create an integrated energy market allowing for cross-border energy trade and integration with the EU internal market Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

4 Energy Community Institutions Ministerial Council Permanent High Level Group (PHLG) Energy Community Regulatory Board (ECRB) Secretariat Fora (Electricity, Gas, Oil, Social*) Task Forces & Coordination Groups Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

5 Working for the Benefit of Customers Customer protection in the focus of ECRB activities since its very beginning (Athens, 11 December 2006) Energy market liberalisation a means of increasing social welfare and consumer benefit The interest of customers the benchmark for measuring the success of market liberalisation Numerous elements targeted to form a customer friendly regulatory framework analyzed Best practise recommendations elaborated Developing solutions that meet the needs of customers but at the same time do not create barriers for competition is the leading principle of our work Persistent call for abolishment of market distorting customer protection schemes, such as non-cost reflective energy price regulation Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

6 ECRB CRM WG Topics of Interest Customer: Protection, Awareness, Education... Vulnerable Customers Retail Market: Monitoring, Functioning, Development, Entry... Tariffs and Prices Billing Quality of Supply Smart Metering Grid Connection Supplier Switching Small Customers Electricity Generation Customer Contracts Complaint Handling and Alternative Dispute Resolution Mechanisms Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

7 Retail Market Monitoring Market monitoring is a core element of regulatory responsibilities! Only in-depth knowledge of market performance, stakeholder activities and development outlooks allows regulators to create an effective market framework that balances the needs of market players and is able to promote competition, customer protection, energy efficiency, investments and security of supply at the same time ECRB published its First Market Monitoring Report in April 2016 Electricity Wholesale, Gas Wholesale, Retail components Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

8 Retail Market Monitoring Overview WP2015 Activity (2015 TF2 Leader: Aca Vučković) CRM WG inputs to ECRB Market Monitoring (mirroring the ACER one) Gas and electricity retail market related parts Report covers Albania, Bosnia and Herzegovina, FYR of Macedonia, Georgia, Kosovo*, Montenegro, Serbia and Ukraine Methodology 3 detailed questionnaires to NRAs (electricity, gas and customer protection) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

9 Retail Market Monitoring Some Findings - Electricity Electricity consumption decrease, on average Retail markets still highly concentrated Transmission and distribution networks effectively opened Only a limited number of eligible customers freely switched their suppliers End-user electricity prices for households vary substantially among analyzed markets (from app. 2 EUR cent/kwh in UA to app. 12 EUR cent/kwh in AL) End-user electricity prices for industry more harmonized, but still lagging behind EU levels In majority of countries industry prices higher than prices for households (some reasons: cross-subsidies, price regulation) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

10 Retail Market Monitoring Some Findings - Gas Substantial gas consumption decrease (more than 15%) End-users of gas supplied mainly by regional retail suppliers, only in two countries (UA and RS) transmission and distribution networks with more than one supplier (in MK transmission network has more than one supplier) Low switching rates Obstacles to retail market entries mainly come from reasons other than retail market design scarce infrastructure and the status of wholesale market development (e.g. single source of gas, poor access to liquid wholesale markets, long-term contracts) End-user HH gas prices vary substantially (less than 1 EUR cent/kwh in UA to app. 5 EUR cent/kwh in BA), prices for industry more harmonized and sometimes higher than in the EU Regulated end-user prices for HH and industry in majority of markets, cross-subsidization exists Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

11 Retail Market Monitoring Some Findings - Customer Protection The SLR is appointed for electricity and gas in all EnC CPs, often having another name Vulnerable customers as well as the measures for their protection defined in most of EnC CPs. Different approaches exist. The share of vulnerable customers in the total number of HH metering points varied between 2 % in RS to 24 % in AL Customers informed about changes in energy prices in advance (15 days in most cases). This information should be provided right on time (e.g. 30 days) to allow active participation for consumers in energy markets (to investigate other offers and possibly change supplier) Breakdown of price to its components (relevant for switching) available in most of the countries (except UA). The obligatory information on energy mix available only on electricity bills in RS and UA Timelines for processing complaints by service providers are mostly reasonable Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

12 CRM WG 2017, General Information 2017 CRM WG Meetings 36 th Meeting, Vienna, 15 Feb th Meeting, Vienna, 14 Jun th Meeting, Vienna, 24 Oct 2017 CRM WG Deputy Chair: Ms. Valentina Dyatlovska 2017 Task Forces TF1 Customer Awareness (Leader: Mr. Martin Martinoski) TF2 Retail Market Monitoring (Co-Leaders: Ms. Marija Vujović, Mr. Aca Vučković) TF3 Customer Protection within Closed Distribution System (Co-Leaders: Ms. Valentina Dyatlovska, Mr. Srđan Žutobradić) TF4 Quality of Supply in Gas (Leader: Mr. Lilian Barcaru) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

13 TF2: Retail Market Monitoring Workstream A: Market Monitoring Report on the functioning of gas and electricity retail markets Assess the electricity and gas markets in the EnC Identification of potential barriers Recommendations on potential improvements 3 detailed draft questionnaires prepared (electricity, gas and customer protection) NRAs to complete questionnaire May 2017 Preliminary results to be discussed in the next meeting Workstream B: Inputs and support to ACER s gas and electricity retail market monitoring activity Questionnaires on retail energy prices Breakdown of household prices based on retail offers Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

14 TF2: RMM, Household Prices Breakdown Source: ACER MMR 2015 Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

15 CRM WG 2016, General Information 2016 CRM WG Meetings 33rd Meeting, Vienna, 11 Feb th Meeting, Vienna, 23 Jun th Meeting, Vienna, 25 Oct 2016 CRM WG Deputy Chair: Ms. Valentina Dyatlovska 2016 Task Forces TF1 Quality of Supply (Leader: Mr. Srđan Žutobradić) TF2 Retail Market Entry (Leader: Mr. Momir Škopelja) TF3 Complaint Handling and ADR (Co-Leaders: Mr. Cristiano Artizzu and Mrs. Salome Janelidze) TF4 Retail Market Functioning (Leader: Mr. Martin Martinoski) TF5 Customer Awareness (Leader: Mr. Florian Pichler) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

16 2016 TF4: Retail Market Functioning Indicators for measuring retail market functioning Meaningful tool for analysis of Potential shortcomings, and A need for regulatory measures supporting retail market efficiency Note: ECRB Documents (DOCUMENTS category) Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May

17 Thank you for your attention! Edin Zametica Energy Community Regulatory Board ERRA CRM WG Meeting, Chisinau, Moldova, May