Consumer Law and Services of General Interest Peter Rott, Bremen

Outline Introduction The regulatory approach of EC consumer law EC regulation of services of general interest Conclusions

Services of general interest Mainly the big network industries: energy, telecommunication, postal services, public transport 1980s until now: liberalisation and privatisation From public law to private law Numerous problems for users/consumers Targeted by the current EC Consumer Policy Strategy

Characteristics of EC consumer law Focus on the so-called average consumer Information paradigm as far as the protection of economic interest is concerned Little use of prohibitions Trend towards total harmonisation, not always at a high level of consumer protection Pressure on national prohibitions

EC regulation of services of general interest Internal market law including consumer protection Universal service obligations: Guaranteed access for everyone, whatever the economic, social or geographical situation, to a service of a specified quality at an affordable price Regulatory mix, see eg Art. 3 of Directive 2003/54/EC

Internal market approach Breaking up monopolies – interconnectivity and transmission, controlled by regulators Information obligations Right to change supplier Consumer‘s right to transmission of third party‘s supply

Universal service obligations No overarching competence, in particular not Art. 16 EC Art. II-96 of the new Constitution is stalled Sector-specific approach under the internal market competence: Dir. 2002/22/EC – telecommunications Dir. 97/67/EC – postal services Dir. 2003/54/EC – electricity Dir. 2003/55/EC – natural gas

Universal service elements Access to services: Right to a contract, vague restrictions to termination Affordability: All users should have affordable access, comparable conditions, but: no price control mechanisms in EC law Quality Continuity

What is the future? Risks of the internal market approach: Focus on those citizens that are of interest for the suppliers Restrictions on national welfare policies (total harmonisation) Therefore need for universal service obligations (human rights, citizens‘ rights)

Conclusion Consumer law is important, and privileges for providers of services of general interest must be abolished However, the real challenge lies in formulating precise and enforceable universal service requirements that guarantee access for everyone, whatever the economic, social or geographical situation, to a service of a specified quality at an affordable price