Customer Focus Group Status Reports ERGEG CFG Workshop, Helsinki October 11th, 2005

Customer Focus Group’s issues for 2005 Guidebook of definitions Evaluation and best practice proposition of Customer switching Transparency of prices Customer protection

Customer Switching Report The issues addressed: Customer switching process Metering requirements Electronic data interchange Obstacles for customer switching Plans and programmes to enhance and simplify the switching process Level of switching activity

Conclusions The switching model Contacts (new and old supplier, network operator) Tasks of market actors Importance of electronic data interchange Metering requirements and solutions Fees, existing tariff structures, regulated tariff systems and market structure affect switching Lack of harmonised definition and data on switching activity

Transparency of Energy Prices, Bills and Contracts Availability of price information Price comparisons Transparency of Bills and Receipts Contents of a bill Billing Transparency of contracts Concluding a contract, contents of a contract Amending the prices and terms of contract For all: legal framework

Conclusions Importance of price transparency is affected by the degree of market opening The existence of many types of prices (regulated prices, incumbent list prices, offer prices etc.) The requirement to publish prices (only the incumbent or all, regulated prices or offer prices)

Conclusions (continued) Access to price information (whether information is scattered or can be found in one place, how up-to-date the price information is)  tariff calculator, price register Legal framework for price transparency of bills Itemization of bills Separation of energy and network prices and charges

Customer protection and the Directives Electricity and Gas Directives  universal service = right to be supplied with electricity/gas of a specified quality within their territory at reasonable, easily and clearly comparable and transparent prices

Annex A of the Directives; Customers must be ensured contract with necessary items adequate notice of contract modifications transparent information on prices and tariffs wide choice of payment methods no charge for changing supplier transparent, simple and inexpensive procedures for dealing with complaints they are informed of their rights regarding universal service

Customer Protection Report Commercial quality of supply Not a standardized issue Variation in information gathering, standards used and consequences of non-compliance Dispute settlement Most of the participating ERGEG member countries have organised dispute settlement Regulator/consumer protection authority/general or energy sector specific dispute settlement boards

Customer Protection Report Supplier of last resort Definition and terms: supplier of last resort – default supplier Usually it is the local distribution company or the incumbent supplier The terms of service are usually regulated Supply to vulnerable customers

Next steps To prepare the best practice propositions on Customer protection Customer switching Price transparency The propositions are expected to be drafted by the end of the year If the time table is followed, a public consultation process will take place during the 1st quarter of 2006 Finalization of the best practice propositions during the 2nd quarter of 2006