1. Consumer Empowerment Consumer Empowerment May 15, 2012 Presented by: Alparslan Bayraktar Commissioner Energy Market Regulatory Authority of Turkey (EPDK) STRIKING A BALANCE IN THE MIDST OF CHANGE May 13-16, 2012 Québec City, Québec (Canada)

2. Outline  Consumer Empowerment  Responsibilities of NRAs  Role of Utilities in Empowerment  Conclusion

3. Consumer Empowerment  Promoting competitive markets in the interest of consumers  Transformation/liberalization of the energy markets was a big step (especially network industries)  New era: Transformation towards consumer-centric mechanisms  Real Choices, accurate information, awareness, transparency and the confidence in the market

4. Towards New Era Market mechanism Infrastructure Choice Awareness Participation Consumer Empowerment

5. Empowered Consumers Model Well designed and functioned model will address:  Supply Security  Climate Change  Efficiency  Sustainability

6. Tools for Empowerment  Measurement and verification of demand response Meter data reporting, advance notification, telemetry and meter accuracy  Ensure more effective evaluation of the performance of energy efficiency products and services  Product innovation and marketing strategies  Ecological Intelligence: Know your impact, favor improvements, share what you learn  Smart Grid, Smart Metering, Smart Solutions, etc. but most importantly SMART REGULATION  Regulatory Impact Assessment

7. Demand Response  Effective deployment of demand response  Increase power system flexibility  Deliver greater electricity security and market efficiency  Meter data reporting, advance notification, telemetry and meter accuracy  Moving from demand side management to demand response  Price based demand response  Incentive base demand response  Apply smarter information technologies  Vulnerability to cyber threats  Need to be smart about grid security

8. Key Elements for Consumer Choice

9. Role of Utilities in Empowerment  Utilities are not only service providers but also gateways to the market for consumers  Improve Utility Accountability  Reliability Targets  Intelligent grid program oversight  Performance based rates

10. Conclusion  Markets are for consumers: So are the regulations!  Then…  Determine the needs appropriately: service quality, alternative choices, costs, environmental or social concerns, etc.  Find solutions for and with the consumers Be transparent Include consumers in the whole process Assure them about the optimality of the solution

11. Thank You! Alparslan Bayraktar Commissioner, EPDK, Turkey abayraktar@epdk.org.tr