1. Frankfurt (Germany), 6-9 June 2011 PAATERO – SE – S6 – Paper 0485 Adopting a general regulatory approach on the European electricity market Noona Paatero Vattenfall Distribution Operations Nordic

2. Frankfurt (Germany), 6-9 June 2011 Outline  Shortcomings of the traditional regulation  Defining the key services provided by the DSOs  Defining the customers of the DSOs  Defining the quality of DSO service and how it could be measured  Conclusions PAATERO – SE – S6 – Paper 0485

3. Frankfurt (Germany), 6-9 June 2011 Shortcomings in the traditional regulation  Ignores the political and collective needs  Low incentives to develop operations  No common steering signals  Focus on consumer customers  Low tariffs vs. stable tariffs  Low distribution price but higher total cost for the customer PAATERO – SE – S6 – Paper 0485

4. Frankfurt (Germany), 6-9 June 2011 Key services provided by the DSO  From a traditional DSO to an enabler of the electricity market Electricity 24/7 Handling the customer contacts Additional services depending on the market model, e.g. energy efficiency Metering and providing grounds for billing Enabling supplier change PAATERO – SE – S6 – Paper 0485

5. Frankfurt (Germany), 6-9 June 2011 Who are the customers of the DSO  Consumer customer  Prosumers  Producers  Retailers  Aggregators  Other service providers PAATERO – SE – S6 – Paper 0485

6. Frankfurt (Germany), 6-9 June 2011 What is the quality of the DSO’s service  Quality of supply  Quality of customer service  Quality in enabling the electricity market PAATERO – SE – S6 – Paper 0485

7. Frankfurt (Germany), 6-9 June 2011 How to measure customer service and market quality  Objective measurements instead of subjective  Must be possible to influence by the DSO  Lead-times for key services  Factors important for the functioning of the electricity market PAATERO – SE – S6 – Paper 0485

8. Frankfurt (Germany), 6-9 June 2011 Possible measures  Customer service quality % of correct on-time AMR-meter readings Answering to customer contacts in different channels (phone, mail, web) Providing services for the suppliers to enable energy efficiency services  Enabling the electricity market Obeying the targets of message exchange Quality of balance settlement Connecting renewable energy sources PAATERO – SE – S6 – Paper 0485

9. Frankfurt (Germany), 6-9 June 2011 Conclusions  Regulation should serve the needs of the whole market (not only one customer group)  Focus on the overall cost of energy  Harmonisation of the goals of regulation PAATERO – SE – S6 – Paper 0485

10. Frankfurt (Germany), 6-9 June 2011 Thank You for Your attention! PAATERO – SE – S6 – Paper 0485 noona.paatero@vattenfall.com