February 2009
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European Energy Regulators’ News | |
Issue: February 2009 | |
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Table of Contents Region in the Spotlight International Activities | Editorial Approximately 100 participants attended the ERGEG workshop on the principles for gas capacity allocation mechanisms and congestion management procedures (currently under public consultation until 20 March) . The workshop and consultation focus on improving access to gas transmission capacity across Europe. On the electricity front, regulators published their 4th Benchmarking Report on the Quality of Electricity Supply, which provides an in-depth review of continuity of supply, voltage quality and commercial quality (see feature article below). This detailed report analyses data from 21 European countries and contributes to a better understanding of the quality of electricity supply levels and policy throughout Europe. In the Regional Initiatives, the efforts towards coherent regional markets continue to bear fruit. The Central South electricity region followed the good practice of other regions in adopting a regional-based Transparency Report. It sets out harmonised and minimum transparency requirements for market participants in the region. Last, but certainly not least, the European energy regulators are pleased to announce the "early bird registration" for the Fourth World Forum on Energy Regulation (WFER IV). The conference programme is available online or from the CEER Secretariat. We look forward to welcoming you to WFER IV from 18-21 October, 2009 in Athens, Greece. |
Regulators benchmark the quality of electricity supply and customer service across Europe | |
In recent years, more and more regulators in Europe have introduced electricity quality incentive/penalty regimes in order to ensure that quality is not compromised as electricity companies seek to cut costs. Such quality regulation regimes seek to strike the right balance between requirements (quality level) and costs. Setting quality standards firstly requires robust and reliable data. Schemes for monitoring long interruptions (i.e. typically more than 3 minutes) already exist in 21 countries, and about half of these also monitor shorter interruptions. Different countries use different indicators for measuring the length of interruptions (e.g. customer minutes lost per year) and frequency (i.e. number) of electricity supply interruptions per year. Chapter 2 of the report contains detailed analysis of the durations and frequency of planned and unplanned interruptions, comparisons of urban versus rural interruptions in 6 countries, as well as information on the type of continuity of supply monitoring and on-site audits carried out in each country. The report shows that the continuity of supply is improving, with customer minutes lost per year decreasing almost continuously since 2002, and the number of unplanned interruptions (excluding exceptional events) stabilising. CEER is working with CENELEC (the EU standards body) to develop harmonised continuity indicators, so as to improve the effectiveness of monitoring schemes. Several European countries have estimated customers’ costs related to short and long interruptions. A large consensus exists regarding the methodology for assessing customer costs for long interruptions and there is significant empirical work. On the contrary, the economics of voltage quality is not yet a consolidated subject. Europe’s voltage quality standard needs to be improved When the voltage quality (the usefulness) is very poor; several problems may arise in the use of electrical appliances and electrical processes; e.g. malfunction, breakdown, trip, damage, reduced efficiency, flickering lights and even fire. Chapter 3 of the report contains information about existing and planned monitoring systems. 6 countries present data on voltage dips and 3 countries present estimates (based on national surveys) for customer costs due to poor voltage quality. Currently 11 European countries have voltage monitoring systems in place. However, the voltage quality data in Europe suffers from a lack of harmonisation (e.g. type of network to be monitored; number and percentage of network points to be monitored and criteria of selection of network points under monitoring; voltage quality disturbances to be monitored and type of monitoring: continuous, rolling, etc.). The report shows that commercial quality standards exist in several countries for (1) connection; (2) customer care; (3) technical service; and (4) metering and billing. Many regulators set “Guaranteed Standards” (GS) for electricity DSOs whereby the company has to pay compensation to the electricity customer if it does not meet the customer service standards set by the regulator. For some GSs, the customer needs to make a claim, whereas for others the payment is automatic. Alternatively the regulator can choose to set an Overall Standard. In addition to GSs and OSs, regulators can set “Other Available Requirements” (OARs) in regulation in order to achieve a certain quality level – if not met, the regulator can issue a sanction (e.g. a financial penalty). Lord Mogg stated “Money-back Guaranteed Standards or setting minimum requirements where the regulator can impose a sanction are the best tools for ensuring proper customer service. GSs allow customers to get money back from their electricity company if it doesn’t provide an adequate service. CEER has benchmarked the quality of electricity supply and service across Europe. Now we will work with consumer associations to make sure that electricity consumers are aware of their entitlements. For example, in Hungary, a householder can claim €20 compensation if the distribution company doesn’t keep its appointment within 4 hours of the agreed time, whereas in Italy it is €30 within a 3-hour timeframe." |
CEER/ERGEG Publications |
Reports: • 4th Benchmarking Report on the Quality of Electricity Supply, 10 December 2008 (C08-EQS-24-04). • Conclusions Paper on the Position Paper on Treatment of Electricity Losses by Network Operators, 19 February 2009 (E08-ENM-04-03b). • Conclusions Paper on the Electricity Regulation 1228/2003 Compliance Monitoring Report (2008), 19 February 2009 (E08-ENM-03-035b. Press Release: • Quality of electricity supply improved by regulators’ incentive-penalty regimes, 23 February 2009(PR-09-04). • ERGEG advises Commissioner Piebalgs on the lessons from Russia-Ukraine gas dispute, 11 February 2009 (PR-09-03). Public Workshop: • Workshop on ERGEG principles: Capacity Allocation Mechanisms and Congestion Management for Gas, Wednesday, 18 February 2009. Presentation slides now available on the website. |
Events |
See all dates of Regional Initiatives meetings (RCC, IG, SG) on the ERGEG online Calendar. Events are by invitation only, unless otherwise stated. |
Regional Initiatives Update |
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The European Energy Regulators have revised their monthly reporting practices of the Regional Initiatives in order to ensure more output-based information and updates for readers, as many of the issues addressed in the regions have a medium-term perspective. For continued information on activities in each region, please consult the Regional Initiatives website and the region's dedicated subpages. |
In the Central South region, following a public consultation, the Central South REM published its Report on Transparency on 12 February 2009. |
International Activities |
The European energy regulators are pleased to announce that "early bird" registration for the Fourth World Forum on Electricity Regulation (WFER IV) is now open and will run until 15 May 2009. The WFER, the leading global energy regulatory conference, takes place every three years. WFER IV takes place in Athens, Greece from 18-21 October 2009. It will address such issues as reliability and security of supply, the role of regulators in responding to climate change, competitiveness and affordability and the independence, powers, responsibilities, best practices and training of regulators. To find out more, view the conference programme at www.worldforumiv.info. Meanwhile, CEER continues its international work on energy cooperation. This month CEER welcomed members of the Japanese Gas Association to Brussels. This was an occasion to share practices and policies regarding the structure of gas markets within Europe and Japan. Meeting participants discussed the principles and impacts of market liberalisation and customer rights and protection, in particular within the context of ongoing restructuring of the Japanese gas sector. |
About the European Energy Regulators' News |
Reported content is given for information purposes only and does not legally bind any of the involved parties. Where third-party sources are mentioned, CEER/ERGEG is not responsible for the accuracy of the information. Your feedback on European Energy Regulators’ News is welcome, so as to improve future issues. European Energy Regulators' News is a free, electronic newsletter and covers the period from the previous issue to the date of publication. It is your gateway to the news from Europe’s energy regulators, press releases, public consultations, advice to the European Commission, news from the Regional Initiatives, and regulation and policy developments at a national level. Become a CEER/ERGEG News Subscriber and receive it directly to your mailbox. Contact: una.shortall@ceer.eu
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