September! Back to school, back to work and back to planning the year ahead!
Regulators have been busy during the summer assessing the feedback to our public consultation on what to prioritise in 2014. The CEER 2014 Work Programme outlining our priorities and deliverables will be published in October.
This month, CEER hosted 10 energy associations, EUROPOL, and representatives from the EU Institutions to discuss progress in national implementation of the measures to combat VAT fraud that the EU adopted in July (see the June joint Press Release).
The feature article (below) looks at which Member States in Europe are rolling out smart metering and whether they are applying regulators’ recommendations on smart metering.
In terms of next events, CEER, ERRA and the ECRB are jointly hosting a consumer workshop for regulators and consumer bodies on 9 October in Vienna. Also save the date (Wednesday 22 January 2014) for CEER’s Annual Conference.
See the International Section for the G20 leaders’ recognition of the importance of regulators' efforts in terms of international dialogue and the role of sound regulation in promoting investment.
Who in Europe is rolling out smart meters? Is it good for consumers?
EU legislation and Smart Metering The 2009 “3rd Package” of energy laws establishes the introduction of intelligent metering systems with the aim firstly to promote energy efficiency and demand-side management measures; and secondly to assist active participation of customers in the market. EU Member States had until September 2012 to carry out a (non-mandatory) cost-benefit analysis (CBA) of the roll-out of electricity smart meters (there is no deadline set for gas).
Are there benefits for consumers? A main advantage of smart meters for consumers is frequent consumption information. Smart metering (if rolled out properly in line with regulators' recommendations) coupled with smart regulation and services (such as time-of-use tariffs, shortened supplier switching processes, and energy savings advice and making sure customers are well informed about smart metering) has the potential to greatly empower consumers: - Consumers should receive bills based on accurate (instead of estimated) consumption on a frequent basis; - Consumers will be be able to take control of their energy consumption behaviour more easily than in the past; - Faster switching processes will allow consumers to switch supplier more easily.
They set out the basic services which should be rendered to customers in the deployment of smart meters so that smart meters actually assist in the active participation of customers. These GGP serve as guidance for Member States, regulators and industry.
Main findings of CEER’s monitoring exercise - Regulators’ 2011 recommendations are generally applied, in particular to conduct a CBA to determine whether or not to roll out. - As of January 2013, most countries were at different stages in terms of making the decision on a roll out. - Smart meter roll out is planned in many EU countries. - In terms of roll-out targets, a majority of countries have gone beyond the 80% minimum target set out in the 3rd Package and opted for a 95% to 100% roll-out. - Two countries have completed their electricity smart meter roll-out (Sweden 100% and Italy 95%). Finland is close in reaching its 80% target by the end of 2013; whilst 15 countries are rolling out or plan to roll out smart meters. - In the case of gas, only one country is rolling out (Italy) and 7 countries plan to roll out, all of them with a target of 95% or more. - The technical design varies from one country to another. Despite many years of assessing EU standards, Europe unfortunately still does not have a common standard for smart meters, and there is a lack of interoperability. Consumers (the demand side of the market) will be a core part of CEER’s work in 2014.
• CEER Status Review of the Regulatory Aspects of Smart Metering
A Joint Declaration of the G20 leaders meeting in Russia (5-6 September) refers to the important role of regulators in creating the right climate for investment and encourages regulators to continue their international dialogue. (See the June Newsletter for information on the Statement of Regulators at the G20 Outreach Energy Regulators Roundtable in Kazan).