1. ERGEG Customers’ Focus Group Helsinki, 11-12 October 2005 Chrissa Argyriou EUROPEAN COMMISSION DG Energy and Transport

2. 2  2005 report (based on Electricity directive 2003/54/EC and Gas Directive 2003/55/EC)  DG Competition sectoral inquiry  Indicators on customers switching OUTLINE

3. 3 The report shall, in particular, consider:  non-discriminatory network access  effective regulation  development of interconnection and security of supply situation  benefits to small companies and households  market dominance, market concentration and predatory or anti-competitive behaviour 2005 report I

4. 4  the extent to which customers are actually switching suppliers and renegotiating tariffs  price developments, including supply prices  the experience gained in the application of the Directive as far as the effective independence of system operators in vertically integrated undertakings is concerned 2005 report II

5. 5 What prompted the sectoral inquiry of DG Competition? Prices! Rising prices raise questions about competitive conditions  Concentration in generation  Low liquidity on exchanges  Are there abuses of market power? Is there manipulation of power exchange prices?

6. 6 Questionnaires January - June 2005:  consultation of regulators, competition authorities, market operators, users  identification of issues  preparation of questionnaires  Commission decision to launch the inquiry in June  1800 questionnaires sent  Analysis of responses underway

7. 7 The process WHO has been REQUESTED TO PROVIDE INFORMATION?  Electricity generators  Suppliers and traders  Power exchanges, Brokers and trading platforms  TSOs, merchant lines, DSOs  Customers  Regulators and surveillance authorities => all issues are adressed by gathering the facts and views of all concerned

8. 8 What is DG Competition studying?  Market conditions  Getting the facts right  Competition issues  Restrictive agreements, abusive behaviour and state measures  Remedies for structural problems  Always taking into account the regulatory framework, as it influences market and competition conditions

9. 9 What should you expect?  Possibly more questions…  Interim report – late autumn 2005 : addressing some of the issues  Final report 2006  Case investigations could be opened where appropriate (by Commission or National Competition Authorities)

10. Customer switching Electricity

11. Gas

12. 12 Customer switching  Commission engaged a consultant to investigate deeper the behaviour of companies  Graphs mixed picture  Regulated end-user tariffs

13. 13 Possible actions  Best practices on customer protection  Compliance with Annex A