This October we held our 2015 Customer Conference. The highlight was the launch of our brand new framework for national regulators to assess the performance of retail energy markets. More in the feature article below regarding our 2 core principles (consumer involvement and effective
competition), 8 desired outcomes and 25 metrics.
The European Commission’s proposals to deliver the Energy Union are progressing swiftly with a range of consultations and communications on issues including market design, risk preparedness, LNG and gas storage and a New Deal for consumers. Regulators are actively contributing to these developments and we have responded to a number of public consultations (see publications). In presenting on LNG and gas storage at the Madrid Forum (14-15 October), we called for mandatory regional plans for gas security of supply.
Save the date! 30 November event (Brussels) to launch the joint ACER-CEER Market Monitoring Report.
Feature: Framework to assess if retail energy markets are working properly
Regulators’ new retail market assessment framework, as set out in CEER’s position paper on well-functioning retail energy markets: (1) defines the outcomes that a well-functioning retail market should achieve; and (2) sets out common criteria for regulators to assess well-functioning markets.
CEER’s market assessment framework is based on 2 key principles (effective competition and consumer involvement) which in turn give rise to 8 aspirational properties (or outcomes) that we expect well-functioning markets to deliver for consumers.
Principle 1: Competition and Innovation • Low concentration relative to their relevant market • Low market entry barriers • Close relationship between wholesale and retail prices • A range of offers, including demand response
Principle 2: Consumer Involvement • High level of awareness and trust • Availability of empowerment tools • Sufficient consumer engagement • Appropriate protection
To measures these outcomes, we propose a set of 25 metrics (from HHIs to a suite of new metrics) to be considered collectively for each relevant market. Our retail market framework is the first step towards the development of a roadmap to deliver well-functioning retail energy markets to the benefit of consumers by 2025.
Papers: • CEER position paper on well-functioning retail energy markets • CEER-ACER response to the EC consultation on energy market design • CEER-ACER response to the EC consultation on risk preparedness • CEER response to the EC consultation on LNG and storage • CEER response to the Energy Community consultation on electricity markets. Press Releases: • Regulators’ framework for assessing retail energy markets advances a New Deal for energy consumers (20 October 2015) • Regulators propose holistic framework for assessing well-functioning retail energy markets (16 October 2015) • Energy regulators call for mandatory regional plans for gas security of supply at the Madrid Forum (14 October 2015)
Training for regulators
• REMIT (9-10 November 2015), • Gas Markets (24-25 November 2015)