Firstly, we welcome Moldova who has joined CEER as an Observer. Also on a welcoming note, we would very much welcome your input to our questionnaire on power losses, and to our new consultation on (price and non-price) comparison tools.
Just published are regulators’ individual country reports and the new ACER-CEER Market Monitoring Report (MMR). The MMR has the latest data and insights on Europe’s electricity and gas wholesale markets, consumers and retail market trends (see feature article below).
Next training course:Renewables and the Electricity Market Design (28-29 Nov). Big event:The ACER-CEER conference on the New Energy Market Design (23-24 Jan 2017).
ACER-CEER Market Monitoring Report provides an evidence base for the Winter Package reforms
What’s in the Report? The MMR report, for the year 2015, comprises five parts: - key insights and recommendations; - wholesale electricity markets; - wholesale gas markets; - retail markets and; - consumer protection and empowerment.
Packed with data and regulators’ recommendations, the MMR provides a thorough analysis of progress towards Europe’s single Internal Energy Market (IEM). In parallel, our national regulators each produce a national (country) report.
New energy market design not needed in gas. A key finding of the MMR is that Europe’s wholesale gas markets are working well. Regulators advise that there is no need to introduce at EU level new market model rules in gas. The Gas Target Model (pioneered by CEER and later developed by ACER) remains a solid basis for gas.
Gas consumers finally start to benefit from lower wholesale energy prices Many consumers are finally beginning to reap the benefits of lower prices, with industrial consumers benefitting more than household consumers from retail competition. On average, the household gas bill decreased by 4.2% in 2015. Electricity wholesale prices also continued to fall. However, the price households pay for electricity has not fallen.
Why have electricity retail prices not fallen? The MMR finds that electricity retail price competition is hindered because of the non-contestable charges in the consumers’ energy bills (e.g. related to the funding of renewables support schemes and, in some cases, capacity remuneration mechanisms and other system services).
Scope for even faster switching and more reliable comparison tools The MMR finds that consumer protection and empowerment is generally well established both in law and in practice. Whilst switching is faster (at an average of 14 days) than the 3-week maximum period allowed under EU energy laws, regulators have set the more ambitious goal of being able to switch within 24 hours by the year 2025.
Once again, this annual MMR finds that regulated prices are still a major barrier to competition. The report makes recommendations on how to improve retail competition including removing the barriers to entry of new suppliers, phasing out regulated prices and facilitating demand response through dynamic pricing. It promotes reliable prices comparison tools (see our new CEER consultation on comparison tools in the new energy market design).
The findings of our 2015 Market Monitoring Report set the context for the reforms in the European Commission’s imminent Winter Package proposals.