An increasingly important question in step with evolution of the electricity market is that of the status of the end users of the electricity – the consumers. The overarching question is that of the situation of customers on a market of this type. Seeing the customer perspective is naturally vital to all activities within the framework of Market Design. The underlying purpose of the electricity market is not primarily for the benefit of producers, network owners or electricity suppliers, but to assure customers of reliable supplies, with minimum environmental impact, at reasonable prices. However, nothing is lost by paying particular attention to certain special customer aspects.
Questions
4.1 How can customers’ positions on the electricity market be strengthened?
A lot is happening just now in the field of European cooperation. An example of such cooperation is that of the
London Citizens’ Forum. Areas covered include protection of vulnerable customers, price comparisons, provision of information to which customers are entitled, one or two contact points with the market, and other aspects. A new directive, the Consumer Rights Directive, is on its way, and will be mandatory on member states. One of the requirements of the Directive may be to specify what information electricity bills must show, and how it must be presented.
4.2 What about the integrity aspects of AMM systems?
The new Advanced Metering Management (AMM) systems permit large quantities of information for each household to be collected, saved and distributed to various parties. Much of what can be done is probably in customers’ interests, but there is a clear risk that the customers will regard some of it as an infringement of their privacy. It is therefore important that clear rules should be formulated at an early stage.
4.3 Should consumers have one or two contact points for their electricity supplies?
Electricity consumers in the Nordic countries have contacts with both their network company and their electricity supplier. This differs from the situation in the rest of Europe, where it is common for end-user consumers to have contact only with their electricity supplier. A feasibility study as part of the work in an earlier stage of the Market Design programme has assessed the benefits and drawbacks of the Nordic model in comparison with those of the European model.