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Brussels, 24/05/2016
ENER B.3
Subject:
Minutes for the Vulnerable Consumer Working Group meeting held
in Brussels on 24th May 2016
The 5th meeting of the Vulnerable Consumer Working Group took place at the European
Commission premises on Tuesday 24th May 2016 from 9:30-15:30. The list of participants
and the agenda are attached (see Annexes I, II). The meeting was chaired jointly by Anna
Colucci, Head of Unit, Eero Ailio, Deputy Head of the Unit, DG Energy and Carina
Törnblom, DG Justice and Consumers. Below is a summary of the key points discussed at
the meeting.
1. WELCOME
The Chair (Anna Colucci) welcomed the attendees. She
presented the agenda which
was adopted without additions.
2. Introduction
The Chair (Anna Colucci) indicated the main problems which are facing retail markets
across the EU, such as: luck of trust and low consumers' engagement for switching the
tariff, the complexity of energy market, independence of aggregators, neutrality of DSOs,
management, protection, and access to the data. She also presented the main solutions
for more competitiveness on the retail energy market, just as: digitalisation, marked-
oriented system, demand-response, flexibility and visible consumers' engagement.
3. Evaluating the protection of vulnerable and energy poor households in the EU
energy legislation
Oscar Guinea (DG ENER) presented the results of the evaluation, invoking the
objectives of the legislation, criteria and effectiveness in the fields of consumer
vulnerability and energy poverty.
Group discussion
Lowe Thomas (EUROGAS) suggested that energy poverty should be clearly defined. He
also mentioned that since a global recession beginning in the 2008 the energy prices
increased and they are often result of rising taxes and levies in energy bills. At the same
time the wages decreased what can have inferior influence of energy poverty issue. Most
of the EU countries have the necessary tools for building a competitive retail market but
they do not implement them.
Arina Cosac (OFGEM) raised an issue that there is
problem with the definition of vulnerable consumer and energy poverty as each country
has a different perception on the issue. She also added that regulated prices could limit
competition on the retail energy market.
Florian Pichler (E-control Austria) noticed that
MSs understand the definition of vulnerable consumer and energy poverty in different
way but mostly each of them incorporated those definitions into national social law.
He believes that energy poverty has risen during few years in the MSs. Aside from that
the necessary tools for build a competitive retail market exists but they are not fully used.
Szymanski Akadiusz (Ministry of Economy) said that only 10% of Polish society who
fulfil definition of vulnerable consumer takes benefit from it. According to him the
energy poverty decreased in Poland.
Graham Cosmo (CCES) admitted that is it difficult
to find a common definition of vulnerable consumer. He also held the opinion that energy
poverty has been rising during the last years in the MSs and taxes, and levies on energy
bills slightly increased too. The retail markets do not work efficiently across the MSs as
the engagement of consumers is pretty low.
Fondi Ludovica Sara (CEDEC) said that
the definition of vulnerable consumer was mostly incorporated into national social laws
of MSs. According to her the definition of energy poverty still differs across the EU.
Martin Bengtsson (The Swedish Consumers Energy Market Bureau) added to the
discussion that energy prices decreased during the last few years in the MSs whereas
taxes on energy bills increased. The unpaid bills lead to disconnection in which
consumers have to pay special fees in order to be reconnected again.
Fonseca Paulo (DECO) stated that social tariffs in Portugal apply only for few consumers. To his mind
the legislation was not effective as the taxes and levies has risen on the energy prices and
no policy measure were introduced despite rising energy poverty in his country.
Katarzyna Wardal (EFIEES) believed that the retail energy markets are working well
but she is concerned about the regulated prices and held the opinion that it should be
improved in the new energy market design legislation in the Winter Packet 2016
.
Graham Cosmo (CCES) said further that north European countries made good progress
in tackling energy poverty but still in many MSs no progress was noticed.
Katarina
Filrová (ERU Representative to the EU) informed that social tariffs do not exist in the
Czech legislation and the Ministry of Social Affairs is considering to incorporate them
into national law but she was concerned about the issue who should pay for it as. For
example, in Germany the consumers are paying for the energy transition.
Marie
Denninghaus (European Disability Forum) raised the issues of luck of visibility of
vulnerable consumer on the energy market and adequate information on energy
consumption on the bill. She stressed that some of consumers are excluded from
procedure of paying a bill because of payment methods used in the MSs.
Paolo Landi
(Fondazione Consumo Sostenibile)
added that Italy did not take enough action in order to
reduce energy poverty and to protect vulnerable consumers. He also mentioned that some
of the Italian families are facing the problem of disconnection which also lasted local
municipalities. In case of abolition of social tariffs in Italy, the prices of energy bills will
rise between 30 or 40% on the Italian energy market.
Main points discussed:
There are different perceptions of definition of consumer's vulnerability and energy
poverty among the MSs and how to put them into practice - it should be on EU or states
level? To find out the measure of energy poverty? The MSs are quitted with the tools to
build a competitive retail market but they are not appropriately used.
Additional:
Paolo Landi (Fondazione Consumo Sostenibile) pointed out that we should find a
solution for disconnection in order to avoid it in critical point for the consumer. The
problem of disconnection should be reduced in Italy and reasons why someone was
disconnected should be analysed, for example, such reasons as: unemployment, illness
and separation. The relevant measure should be adapted at the European level for
fighting energy poverty.
Szymanski Akadiusz (Ministry of Economy) added that in
Poland consumers are not appropriate inform in case of disconnection. The prepaid
2
meters could be a right solution for that problem.
Florian Pichler (E-control Austria)
noticed that National Regulation Agencies should collect the data about the
disconnection and analyse them. According to him consumers are protected in case they
are connected to the grid but there is no protection of consumers in case of reconnection.
4. Improving the protection of vulnerable and energy poor households in the EU v
energy legislation.
Oscar Guinea (DG ENER) presented the evaluation of preliminary findings of the definition
of energy poverty and selected indicators to measure it.
Main points discussed:
Paolo Landi (Fondazione Consumo Sostenibile) shared the opinion that the definition of
energy poverty should take into consideration the existing solidary tariffs and regulated
prices for protecting vulnerable consumers. The authorities in the MSs should set targets
and take an appropriate measure in order to improve the protection of energy poor
households in the EU.
Heidi Ranscombe (Citizens Advice) said that we need to develop
the common policy at national and international level which protects different consumers
from exclusion from the energy market. She also mentioned that a comparable metric of
energy poverty at the international level could help to exchange relevant data between
national authorities across the EU. But one the most challenges today will be measure of
collected data on energy poverty in the MSs.
Graham Cosmo (CCES) argued that
considering energy poverty as a phenomenon which relates only to household income
with energy expenditure could be not comparable with the Scottish or British definition
of energy poverty. Nowadays we are facing the different dimension of energy poverty
across the EU so it will be difficult to set a fixed metric on it at the international level. To
his mind costly disconnection could be avoided if each household in the EU had installed
the prepaid meters.
Sébastien Doligné (Eurelectric) told that the problem of
disconnection really varies depending on the MSs and the access to the prepaid meters.
Martin Bengtsson (The Swedish Consumers Energy Market Bureau) claimed that social
security system which preventing consumers from disconnection differ from contract to
contract with the company and it will be problematic to implement good practices of
disconnection into European legislation.
5. Closing
The
Co-chair (
Oscar Guinea, DG ENER) informed that he will send the links to the
study "Selecting indicators to measure energy poverty" and keep the group informed of
any other relevant publication concerning energy and costs prices. He also mentioned
that next meeting will be organised together with the Consumer as Market Actors Group.
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ANNEX I
List of Participants
European
Mr
AILIO
Eero
DG ENER
Commission
The Swedish Consumers Energy
Mr
BENGTSSON
Martin
Sweden
Market Bureau
European
Ms
COLUCCI
Anna
DG ENER
Commission
Ms
CORNELIS
Marine
NEON
Belgium
Ms
COSAC
Arina
OFGEM
United Kingdom
Mr
COSMO
Graham
CCES, University Leicester
United Kingdom
European
Ms
DENNINGHAUS
Marie
European Disability Forum
Organisation
Ms
DOBBINS
Audrey
University of Stuttgart
Germany
Mr
DOLIGÉ
Sébastien
Eurelectric
Belgian
Ms
FILROVÁ
Katarina
ERU Representative to the EU
Czech Republic
Ludovica
Ms
FONDI
CEDEC
Belgian
Sara
Mr
FONSECA
Paulo
DECO
Portugal
Ms
HAASOVÁ
Jana
ERO
Czech Republic
European
Ms
KLEMOK
Nina
EASME
Commission
Fondazione Consumo
Mr
LANDI
Paolo
Italy
Sostenibile
European
Mr
LOWE
Thomas
EUROGAS
Organisation
Mr
PICHLER
Florian
E-control Austria
Austria
Ms
RANSCOMBE
Hendi
Citizens Advice
United Kingdom
Mr
SZYMANSKI
Akadiusz
Ministry of Economy
Poland
European
Ms
TÖRNBLOM
Carina
DG JUST
Commission
Mr
VANWIJNSBERGHE
Sam
FPS Economy - DG Energy
Belgium
European
Mr
VOLLMER
Johannes
GEODE
Organisation
European
Ms
WARDAL
Katarzyna
EFIEES
Organisation
4
ANNEX II
EUROPEAN COMMISSION
DIRECTORATE-GENERAL FOR ENERGY
Directorate B - Internal Energy Market
B.3 - Retail markets; coal & oil
VULNERABLE CONSUMER WORKING GROUP
AGENDA
Brussels, 24 May 2016, 09:30 – 15:30
Venue: Meeting room DM 24 03/058
Rue De Mot 24, 1040 Brussels
09:30
Welcome: Anna Colucci, Head of Unit B.3, DG ENER
Carina Tørnblom, Head of Unit E.6, DG JUST
09:45
Evaluating the protection of vulnerable and energy poor households
in the EU energy legislation
Presentation
Oscar Guinea, DG ENER B.3
10:00
Coffee Break
10:15
Group Discussion
Key questions:
Was the legislation effective? Were the objectives for consumer vulnerability
and energy poverty met?
Would you that despite the efforts to reduce consumer vulnerability, energy
poverty has been rising?
Do Member States have the necessary tools to build a competitive retail market
and protect vulnerable and energy poor households
12:15
Summary of the discussion 12:30
Lunch Break 13:30
Improving the protection of vulnerable and energy poor households in
the EU energy legislation Presentation
Oscar Guinea, DG ENER B.3
13:45
Group Discussion
Key questions:
Energy poverty
What is the level of detail (what elements should be included) for a definition of
energy poverty to be relevant and yet flexible so it can be shared across the EU?
How prescriptive can we be when setting a metric of energy poverty? Fixed or
relative threshold? What are the lessons from consumer vulnerability? Is energy
poverty a phenomenon that relates household income with energy expenditure?
Disconnection safeguards
What is the level of detail (what elements should be included) for a definition of
energy poverty to be relevant and yet flexible so it can be shared across the EU?
5
14:45
Summary of the discussion 15:30
Closing
*
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