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Regulators’ Monitoring of Consumer Protection and Retail Markets

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Presentation on theme: "Regulators’ Monitoring of Consumer Protection and Retail Markets"— Presentation transcript:

1 Regulators’ Monitoring of Consumer Protection and Retail Markets
Andrew Ebrill, CEER Secretary General CEER Customer Conference, Brussels 29 November 2018

2 Retail Market Functioning
Agenda Retail Market Prices Retail Market Functioning Consumer Protection and Empowerment Publications ACER-CEER 2017 Annual Report on Monitoring the Electricity and Natural Gas Markets - published Autumn 2018 CEER Retail Markets Monitoring Report for the Year to be published December 2018

3 Retail Retail Market Prices Retail prices are a mixed story, with wholesale costs a driver Retail mark-ups, subsidies and levies have an impact too Aggregated EU Price in 2017 Elec. HH 204 EUR/MWh INDEX Gas HH 61 EUR/MWh Elec. IND 104 EUR/MWh Gas IND 25 EUR/MWh 31

4 Breakdown of Retail Electricity Price
HH electricity retail price % 34

5 Breakdown of Retail Gas Price
HH gas retail price % 33

6 Retail Market Functioning
Electricity Markets Big variety in national supplier numbers! Improvement: in 20 MS more suppliers in 2017 than 2016 In 13 MS 100% of supplier act on a nationwide level The CEER Retail Report will have, for the first time, an analysis of offers to customers in term of specialised supply types, special billing options, relative variety of offers, etc.

7 Retail Market Functioning
Gas markets often less dynamic than electricity Improvement: in 10 MS more suppliers in 2017 than 2016 In 13 MS 100% of suppliers act on a nationwide level

8 Retail Market Concentration
Electricity Markets In 8 MS, HHI index ≤ 2000 in 2017, 3 more than 2016

9 Retail Market Concentration
Gas Markets In 3 MS, HHI index ≤ 2000 in 2017, one more than 2016

10 Switching Rates Electricity Markets
In 8 MS, external switching rates above 10% Internal switching rate highest in GB (27%) and Sweden (26%)

11 Switching Rates Gas Markets
In 5 MS, external switching rates above 10% Internal switching rate highest in GB (30%).

12 Price Regulation and Intervention
Electricity Gas 14 MSs apply price regulation to households Highest share of HH under regulated prices in BG, PL, RO, HU, MT, CY, LT (ranging from 87% to 100%) 13 MSs apply price regulation to households 100% of HH under regulated prices in 6 MS Successful removal of price regulation in PL, DK, GR. In LT, PT and RO removal of price regulation is in progress. GB introduced regulated prices in form of price cap on domestic prepayment meter charges. The Netherlands imposed maximum tariffs for the first time.

13 Consumer Protection and Empowerment
SOLR energy price comparison to conventional energy prices in EU MSs SOLR generally available, but often more expensive Disconnection process gives reasonable time to settle open bills Disconnection rates hardly exceed 1% Pre-payment meters only used in a few MSs as substitutes for disconnections (or otherwise) 38

14 Consumer Information Information provided on household consumer bills in EU MSs Third Package requirements (EED) concerning information on bills extended in all MSs Already a plethora of information elements on national bills Arguably too much information confuses! Source: 2017 Market Monitoring Report on Consumer empowerment based on CEER databases, national indicators 40

15 Protection of Vulnerable Consumers and Consumer Choice
MSs have in place a range of safeguards/protections for vulnerable populations Intermingling with social security system causes confusion between energy/social security legislation and incomparability across MSs Definitions of energy poverty only available in 5 MSs More than 10% of population considered energy poor in some MSs Reliable Comparison Tools still not available everywhere Average switching duration remains at approx. 12 days 3-week limit is generally respected in all MSs Should do better!

16 Complaints and ADR Average shares of household consumer complaints directly addressed to NRAs for EU MSs Suppliers and Distribution System Operators often requested to respond to complaints within 1 month Main share of complaints is about bills, (dis)connections, prices and contracts 43

17 Smart Metering Smart meter roll reached more than 50% in 9 MSs
Electricity smart meter roll out rates in EU MSs Smart meter roll reached more than 50% in 9 MSs Maximum time granularity between 15 minutes and 1 hour Roll-out rate is mixed! 41

18 Thank you for your attention!


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