1. COJEF II Conference Co-operation with consumer organisations - presentation of the recommendations by CEER Dirk Van Evercooren, CEER 21 April 2015, Brussels

2. PRESENTING CEER (AND ACER) 12/12/2015

3. 3 Council of European Energy Regulators Voice of Europe's national energy regulators at EU and international level Not-for-profit organisation Based in Brussels Established in 2000 8 permanent staff Introduction to CEER

4. Members from: All 28 EU Member States + Iceland and Norway Observers from: Switzerland + Former Yugoslav Republic of Macedonia (FYROM) + Montenegro 4 Members

5. 5 CEER General Assembly (GA) President: Lord Mogg Electricity Working Group M. Crouch Electricity Security of Supply (ESS) TF Sustainable Development (SDE) TF Gas Working Group (GWG) W. Boltz LNG TF Gas Storage (GS) TF Gas Infrastructure TF (GIF) Market Integrity and Transparency (MIT) WG A. Groebel C. Poletti Wholesale Energy Market (WEM) TF Customers and Retail Markets Working Group P. de Suzzoni Retail Market Functioning (RMF) TF Customer Empowerment (CEM) TF Strategy and Communication (SC) WS Implementation, Benchmarking and Monitoring WG K. Locquet Market Monitoring and Reporting (MMR) TF Investment, Regulation and Benchmarking (IRB) TF Legal TF International Strategy Group M. Thiolliere, R. Huttunen Distribution System Operators G. Blaney, V. Termini Electricity Quality of Supply (EQS) TF Smart Grids Coordination Group TrainingEPU Working Program Drafting Committee Board Seven Working Groups and three ‘Virtual’ Policy Units, composed of regulators’ staff and the CEER Secretariat 1.3 Internal Structure

6. 6 Agency for the Cooperation of Energy Regulators Official European Agency created by the Third Package Alberto Pototschnig, Director John Mogg, Chairman Board of Regulators Operational since 2011, around 80 staff Membership restricted to Member States Introduction to ACER

7. 7 ACER Director Alberto Pototschnig Electricity Regional Initiative (ERI) Gas Regional Initiative (GRI) ACER Board of Regulators (BoR) Electricity Working Group Chair: Martin Crouch Electricity Network and Market (ENM) TF SO Codes PG Grid Connection Codes PG CACM PG FCA PG BAL PG Loop Flows WS Infrastructure TF Energy Infrastructure (EIP) WS Tariffs WS CBCA / ITC WS TYNDP WS Gas Working Group Chair: W. Boltz Interoperability TF Capacity Allocation Management TF Rules for Trading WS Gas Balancing TF Gas Capacity Allocation Mechanism TF Gas Tariffs TF Incremental Capacity Gas Infrastructure TF Gas Target Model TF Market Integrity and Transparency WG Co-Chairs: A. Groebel ; C. Poletti Market Monitoring Governance TF Wholesale Market Surveillance TF REMIT IT Management and Governance TF Implementation and Monitoring WG Chair: K. Locquet Market Monitoring and Reporting TF Procedures WS (PWS) ACER Board of AppealACER Administrative Board 2.2 Internal Structure

8. Agency for the Cooperation of Energy Regulators What is ACER? EU Agency for EU Member States -> has its own staff and resources in Ljubljana, Slovenia NRAs volunteer significant resources to preparing ACER’s work What are ACER’s main policy objectives and tasks? Integrated EU internal energy market (EU-wide Network Codes; Framework Guidelines for developing the regulatory framework for cross-border market arrangements; Regional Initiatives) An efficient cross-border energy infrastructure Transparency in the energy market (market monitoring tasks)

9. CEER and ACER A complementary approach to energy regulation in Europe: ACER: statutory tasks related to cross-border market development and oversight CEER: broader variety of issues (e.g. customer rights, sustainable development and climate change, technological development of electricity and gas networks), and a broader vision of Europe’s energy landscape both within and beyond EU borders (e.g. CEER’s international work) CEER works closely with and supports the work of ACER

10. Some core CEER Activities Developing policy proposals (e.g. advice, guidelines, position papers) Analysing the state of play in different European countries on specific energy topics (e.g. benchmarking, monitoring reports), promoting the European objectives for the achievement of an internal energy market Continuous stakeholder dialogue such as consumer associations, industry associations, EU Institutions Participation in the political debate and EU initiatives (e.g. EC working groups on vulnerable consumers; price transparency; smart grids; standardisation activities)

11. CEER-BEUC 2020 Energy Customer Vision

12. Draft Customer driven vision Spring 2012 Customer conference June 2012 Develop the vision Autumn 2012 Present vision at Citizens' Energy Forum November 2012 Develop Action Plan Early 2013 Annual Review Citizens ' Energy Forum 2013-2014 Implement- ation and monitoring Ongoing 2014-2020 A step-by-step approach

13. What is our Vision? An energy sector that: customers ►puts customers first diverse needs of customers ►engages with and understands the diverse needs of customers services ►delivers services that meet those needs future needs ►anticipates future needs protectfuture customers ►takes steps to protect the interests of future customers resources efficiently ►that uses resources efficiently, and a fair deal ►offers all customers a fair deal

14. 4 principles: RASP Affordability Protection and empowerment ReliabilitySimplicity

15. The Vision and its supporters In November 2012 the Vision became a joint CEER-BEUC statement supported by 16 European and international organisations: ►Alternative Dispute Resolution bodies ►Industry ►Retailers ►DSO-organisations ►… The Vision supporters are joining efforts with CEER and BEUC to implement the vision

16. CEER Advice on How to Involve and Engage Consumer Organisations in the Regulatory Process

17. New CEER Advice CEER Advice on How to Involve and Engage Consumer Organisations in the Regulatory Process Ref: C14-CEM-74-07 Published: 12 March 2015 12/12/2015

18. Citizens’ Energy Forum (I) 7 th meeting of the Citizens’ Energy Forum, 12-13 March 2015 Conclusions includes numerous explicit references to energy regulators’ work and to the role of consumers: ►[the Forum] Calls on the Commission, the Regulators and the Member States to work towards further improvements in the design and operation of energy markets, including through measures to remove entry barriers, enable an increase in system flexibility and ensure the continued effectiveness and enforcement of consumer protection, especially against unfair selling practices. ►[the Forum] Encourages ACER and CEER to pursue vigorously their market monitoring work. ►[the Forum] Welcomes the holistic analysis and key proposals set out in the Regulator's "Energy Regulation, a bridge to 2025" in particular as regards regulators' commitment to establishing common criteria for a well-functioning retail market and to develop a Roadmap aimed at competitive, reliable and innovative retail markets 18

19. Citizens’ Energy Forum (II) London Forum’s Conclusions 2015: ►[the Forum] Calls on the Commission to establish a structured and transparent cooperation process between energy regulators and consumer authorities possibly via the Consumer Protection Cooperation network. NEW ►[the Forum] Invites consumer bodies and regulators to continue their joint efforts to strengthen the consumer awareness and voice in the energy regulatory process as recommended for example in CEER’s advice on how to involve and engage consumer organisations in this process ►[the Forum] Recommends that new and traditional market actors and sales channels be subject to adequate regulatory oversight especially in terms of transparency in order to ensure consumer trust. NEW 19

20. Regulatory tasks 17/12/2013 The 3rd Energy Package assigns the task of monitoring the energy market to NRAs Market monitoring should be complemented by asking for the customers’ (and consumer organisations’) experiences Developing better regulation should also be based upon customer experiences Need to consult with consumer organisations to ensure new regulation is efficient and effective

21. Why collaborate with Consumer organisations? 17/12/2013 Consumer organisations are therefore important partners in the regulatory process: They can pass on signals about market functioning (and market failure) They provide guidance to customers about prices and rights, thus empowering them They are involved in complaint handling and (in some cases) Alternative Dispute Resolution They disseminate information from NRAs

22. NRAs and Consumer Organisations Consumer Organisations are a stakeholder among others for NRAs But collaboration is not as developed and structured as with other stakeholders COs not as focussed and resourced as other typical stakeholders COs can be the voice of energy customers Regulators need to balance a range of interests in the energy market, whilst working in the public interest 12/12/2015

23. Positive effects Involving consumer organisations more structurally in the regulatory process is believed to have a number of positive effects: Improve performance of regulators and consumer organisations, by facilitating understanding of markets and consumer concerns Help to encourage increased understanding and acceptance of regulatory decisions ; and Lead to greater transparency, to the benefit of all market participants 12/12/2015

24. RASP principles Strengthen reliability of processes and services delivered to consumers and to enhance customer empowerment/protection through more transparency, regulatory accountability and enhanced compliance with rules Customers will benefit from information that is readily available and simple to understand; and Enhanced engagement of consumer organisations in energy policy development contributes to improving design of market rules and more competitive markets, which in turn is a condition for affordable prices in the long run 12/12/2015

25. Advice on Consumer Organisations Involvement CEER Advice developed in close cooperation with BEUC Four thematic areas, each with a number of specific recommendations: Information Exchange Capacity Building Policy Development and Design Improving Compliance 12/12/2015

26. Information Exchange Recommendation 1 – Simplicity of information Recommendation 2 – Visibility of information Recommendation 3 – Improved communication channels Recommendation 4 – Clear framework for information sharing ►Avoid complex language and exaggerated levels of technical detail ►Make information more accessible through proactive notifications 12/12/2015

27. Capacity Building Recommendation 5 – Synergies Recommendation 6 – Extent of capacity building Recommendation 7 – Priority subject areas Recommendation 8 – Resource management Recommendation 9 – Forms of capacity building Recommendation 10 – Best practice from other sectors ►Strengthen knowledge base and performance of both NRAs and consumer organisations 12/12/2015

28. Policy Development and Design Recommendation 11 – Overview of future developments of the regulatory framework Recommendation 12 – Prioritisation of future regulatory developments Recommendation 13 – Public consultations Recommendation 14 – Transparency ►NRAs should provide an overview of envisaged future regulatory framework developments ►Encourage consumer organisations to take part in this process 12/12/2015

29. Improving Compliance Recommendation 15 – Evidence-based regulation Recommendation 16 – Accountability ►Detect potentially non-compliant behaviour in the market ►Help provide stronger evidence-based regulation ►Make NRAs more transparent 12/12/2015

30. Conclusions / next steps A well-functioning retail market for electricity and gas requires empowered and protected customers Involvement of consumers and consumer organisations is key to deliver effective regulatory and enforcement results NRAs and consumer organisations already cooperate on a variety of issues, but more needs to be done CEER will look with BEUC at how collaboration between NRAs and consumer organisations can be intensified and made more effective following the Advice’s recommendations 12/12/2015

31. Thank you for your attention! www.ceer.eu