Energy Poverty in Clean Energy Package Wioletta Dunin-Majewska DG ENER, Retail Markets

Outline Clean Energy Package proposal Consumer dimension Where we were (or still are) – Third Energy Package New energy poverty provisions Where do we go from here

Context of the legislative proposals Clean Energy Package for All Europeans 8 legislative proposals: 4 Regulations and 4 Directives Currently discussed with the Council and the EP; aiming at proposals becoming law in 2018 Goals: Putting energy efficiency first Achieving global leadership in renewable energies Providing a fair deal for consumers

Consumers: three dimensions Empowerment: active consumers, demand response, Local Energy Communities Better information: on billing, switching suppliers, price comparison tools Protection: energy poverty and data protection

Clean Energy Package: some details Proposals relevant for energy poverty: Electricity Directive Energy Performance in Buildings Directive Energy Efficiency Directive Energy Union Governance Regulation

Starting point – a short recap Third Energy Package – relevant provisions In Directives on common rules for the internal electricity and gas markets Energy poverty recognised as an energy policy issue MS required to identify and protect vulnerable consumers; Energy poverty to be addressed in the vulnerable consumer context (where identified as a problem)

Rationale for new provisions Energy poverty levels on the rise across the EU Lack of reliable data and information on the scale of the phenomenon at MS level Weak policy transfer from successful programmes Resulting in difficulties in effective policy design

Electricity Directive Description in Recital (40) : "Inability to afford basic energy services, such as adequate warmth, cooling, lighting and the energy to power appliances, due to a combination of low income, high energy expenditure and poor energy efficiency of their homes" New requirements: Article 29 Define a set of criteria to measure energy poverty Monitor energy poverty Report on the evolution of energy poverty and measures taken to prevent it to the Commission every two years (as part of their Integrated National Energy and Climate Progress Reports) Article 10 MS to ensure that customers are given information on alternatives to disconnection sufficiently in advance

Interlinkages Energy Performance in Buildings Directive Incentivising the tackling of energy poverty through building renovation and lifting people out of energy poverty Long term renovation strategies required to contribute to the alleviation of energy poverty Energy Efficiency Directive EE obligation scheme: MS shall include requirements with a social aim (…) by requiring a share of EE measures to be implemented as a priority in energy poor households and in social housing; alternative EE policy measures: MS shall take into account the effect on households affected by energy poverty

Interlinkages Governance of the Energy Union Regulation Integrated reporting on the internal energy market includes national objectives with regards to energy poverty, including the number of households in energy poverty and when the objectives shall be met; also policies and measures to achieve the objectives specific actions, share of savings to be achieved in households affected by energy poverty and in social housing in line with point (a) of Article 7a (5); EE On alternative measures: specific policy measures or individual actions targeting energy poverty

Where do we go from here Clean Energy Package expected to become law in 2018 The Energy Poverty Observatory goes live in December 2017

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