ERGEG Customer Focus Group Karima Björk, Svensk Energi

Four Nordic countries – one market

Agenda Customer focus Swedish experience

The deregulated electricity market Grid Generator Market Place Supplier Trader Customer CompetitionMonopoly Regional net Local net Customer TSO Production Consumption Customer Supplier

Amount of customers that have switched supplier or renegotiated

Number of switching

Degree of satisfaction switching supplier

Renegotiated contract or switched supplier City and region

Certain of not switching

Contracts – domestic customers Statistics Sweden

Customer confidence Deregulation Tot: Feb-05 Tot: Okt-04 Tot: Mar-04 Tot: Sept-03 Tot: Mar-03 Tot: Okt-02 Tot-Mar-02 Tot: Aug-01 Tot: Feb-01 Tot: Aug-00 % very goodgoodneither norbad/very bad

Further development…….

Kundoffensiven – an Electricity Supply Industry Initiative Varabygdens Energiekonomiska Förening Kommunalteknik Trelleborg

Implementation Improving rules and regulations Månadsavläsning föruts. för att fungera Improvement programme Monthly metering and settlement Standardized invoice outline Standardized customer information Improving information flow between players Kundoffensiven – an Electricity Supply Industry Initiative

Unique plant identity – EAN code Personal code number Shorter time for switching supplier Central function streamlining customer processes Propositions Customer switching

Central function streamlining customer processes Common standard and technical solution for retail data exchange Managing interaction between players with high quality Cost efficiency, automated and reliable data access Supplier change, metering and reporting, balance data

Transparency of energy prices Price comparisons Legal framework –new legislation –Price Indication Act (Oct ), regulation on price comparisons (July ) –Electricity prices only –”Prices all inclusive” (energy taxes, VAT and green certificate fees) –Price comparisons calculated for three customer categories according to Statistics Sweden –Comparisons must be indicated in all advertisment and commercial (e.g. web sites, price lists, direct marketing, tele marketing) Availability of price information –Provided by the Swedish Consumer Agency (voluntary)

Transparency of bills Minimum level of information –Specific invoice information (date, customer id, invoice number etc.) –Meter number or similar –Separate information on consumption, electricity and net services respectively –Date:13 February 2005 (not ) –Payment information should be very clear including full VAT specification The invoice should be easy to understand – common terminology

Customer protection Laws and agreements –i.e Electricity Act –Voluntary agreements and industry recommendations Authorities and dispute settlement –The Swedish Consumer Agency –The Swedish Competition Authority –The Energy Markets Inspectorate within the Swedish Energy Agency –National Board for consumer complaints (ARN) –Public court Advice –Municipal consumer advisors –Municipal energy consultants –The Swedish Consumer Electricity Advice Bureau

TOMORROWTODAY

A common retail market