1. Marielle Liikanen, chair RMF TF Camilla Egginton – project leader Citizens’ Energy Forum, London, 21-22 October 2010 Customer empowerment through retail market monitoring

2. 2 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Outline Understanding the customer experience Work process Current monitoring practices 3 rd Package requirements Our recommendations Adopting ERGEG’s guidelines – how do these affect the customer’s experience? Customer satisfaction Retail market outcomes Market structure Market condition and DSO services Conclusion

3. 3 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Customer empowerment through market monitoring In a well-functioning market, the customer is empowered… …but how do we measure this?

4. 4 3rd Citizens’ Energy Forum, London, 21-22 October 2010 ERGEG thought about the customers’ experience Prices …which is affected by market outcomes such as… …and ultimately driven by… (i) Market structure Choice Complaints Enquiries Consumers may reveal their satisfaction through… …and (ii) Market condition No.of suppliers Market share Branding Switching Disconnection Maintenance Repair

5. 5 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Numerous stakeholders are responsible Prices …which is affected by market outcomes such as… …and ultimately driven by… (i) Market structure Complaints Enquiries Choice Consumers may reveal their satisfaction through… …and (ii) Market condition No. of suppliers Market share Branding Switching Disconnection Maintenance Repair Consumer Groups Suppliers Regulators Consumers DSOs

6. 6 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Work process Internal questionnaire 11 members, describing national monitoring exercises In depth surveys of current monitoring practices Consumer markets scoreboard (DG SANCO), National reports, Benchmarking report, The Probe (UK) Public consultation April - June 2010 28 respondents Final GGP October 2010

7. 7 3rd Citizens’ Energy Forum, London, 21-22 October 2010 We found monitoring practices vary IndicatorMonitoredNot monitored Customer complaint101 Customer enquiries74 Customer information65 End-user prices101 Retail margin65 Spread price74 Diversity of contracts (offers)56 Regulated end-user prices74 Number of suppliers110 Market concentration92 Branding38 Switching rates101 Renegotiations110 Delays in switching56 Failure to fulfill the switch65 Connections and repairs83 Disconnection rates74 Maintenance services65 Number of NRAs who monitor indicators required by the 3 rd Package (electricity) Source: ERGEG internal questionnaire, based on 11 responding countries

8. 8 3rd Citizens’ Energy Forum, London, 21-22 October 2010 …especially in light of the 3 rd Package IndicatorMonitoredNot monitored Customer complaint101 Customer enquiries74 Customer information65 End-user prices101 Retail margin65 Spread price74 Diversity of contracts (offers)56 Regulated end-user prices74 Number of suppliers110 Market concentration92 Branding38 Switching rates101 Renegotiations110 Delays in switching56 Failure to fulfill the switch65 Connections and repairs83 Disconnection rates74 Maintenance services65 Number of NRAs who monitor indicators required by the 3 rd Package (electricity) Source: ERGEG internal questionnaire, based on 11 responding countries

9. 9 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Our recommendations Customer complaints Customer enquiries Customer information End-user prices Price spread Available contracts % on regulated price No. of active suppliers Market shares DSO branding Switching rate Renegotiated contracts Delayed switches Failed switches Connection times Repair times Disconnections Maintenance service time & charge Our consumer-centric framework, category aims and suggested indicators Derived from the 3 rd Package

10. 10 3rd Citizens’ Energy Forum, London, 21-22 October 2010 …note they come with a health warning None should be considered in isolation – results could be misleading –For example, a low complaints level suggests the market is working well – but if this is combined with low numbers of enquiries, a low switching rate and rising prices, it could equally suggest that consumers are disengaged Results should be considered in relation to national circumstances and a qualitative understanding of the market Results do not deliver conclusions by themselves – deeper investigation may be required The list is not intended to be exhaustive, or prescriptive, and should be tailored to national requirements

11. 11 3rd Citizens’ Energy Forum, London, 21-22 October 2010 How monitoring empowers the customer 1.Customer complains, enquires or experiences a delayed or failed switch 2.Responsible stakeholder must log the event 3.NRA collects and analyses the data 4.NRA could then consider further monitoring or deeper investigation… 5.…followed by action 1 2 3 4 5 Plus wider monitoring to ensure that the market is functioning well overall

12. 12 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Conclusion ERGEG believes that: Monitoring which captures: Customer satisfaction Retail market outcomes Market structure Market condition and DSO services …in a holistic way enables key insights into the issues which may be affecting market functioning Identifying these issues enables targeted action to ensure that the market protects consumer welfare Implementing our Guidelines will both aid compliance with the 3 rd Package and lead to broader monitoring where this is valuable Will help NRA to empower the customer and ensure that the market is functioning well

13. 13 3rd Citizens’ Energy Forum, London, 21-22 October 2010 Thank you for your attention! Link to the report (click on the title): GGP on Indicators for Retail Market Monitoring