Editorial As well as two current public consultations to keep you busy this July, there is plenty of recommended reading in this summer edition of the CEER newsletter. The ICER Chronicle, just published, is packed with 8 interesting articles on topics ranging from cyber security in the power sector through to the energy efficiency potential in the USA. In a 2-minute video, ICER Chair, Lord Mogg talks about how resource-constrained organisations can get the most out of their staff (see international section).
Another good read is the European Commission's Energy Consumers' Rights brochure. Also check out the presentations and speaking notes from our CEER 2014 Customer Conference on retail energy markets. Distinguished speakers included Consumer Policy Commissioner Mimica, Energy Commissioner Oettinger, the Greek and Italian Presidency and MEP Turmes. The main take away from the conference is the shift that has taken place from talking about the need for “consumer-centric” retail markets, to what is actually needed to make competitive energy markets a reality. Staying with the consumer (i.e. demand) side of the market, our feature article (below) is on the CEER Demand-Side Flexibility paper, released at our June 26th Sustainable Energy Week event.
Finally, before packing your suitcases with these “must-reads”, save the date (22 September) for our data management workshop.
Unlocking the demand/consumer side of electricity markets
CEER has launched advice on ensuring regulatory and market arrangements which help deliver demand-side flexibility (DSF). The CEER advice is the result of extensive consultation with stakeholders. What’s in the CEER Advice on Demand Side Flexibility? As well as defining “demand-side flexibility” (DSF) and outlining the potential benefits and barriers, the regulators' advice sets out a suite of high level principles and recommendations to ensure markets and regulatory arrangements help deliver demand-side flexibility at wholesale, network and retail levels.
What is Demand Side Flexibility? CEER’s definition of"demand-side flexibility" is the ability for end-use consumers to change (increase or decrease) their electricity usage from their normal / current consumption pattern in response to market signals (for example, time of use electricity tariffs or incentive payments) or through the consumers bid (alone, or via aggregation) to sell their flexibility on energy markets.
Such DSF has a value and so can potentially be traded between parties as an alternative to investing in new generation or network reinforcement.
Demand-side flexibility means empowering consumers, avoided or reduced investment DSF, if enabled, has the potential to bring significant benefits to consumers, both in terms of controlling their energy use and bills, and in terms of the avoided cost of generation and network investments. Demand-side flexibility also delivers benefits for the energy system as a whole. It can reduce peak demand, contributing to system adequacy, and reduce balancing costs, helping to support increased penetration of renewables. Consumers need the right information, tools and regulatory framework Regulators want to unlock the value of demand-side flexibility for the provider/customer. This requires: • ensuring consumers are fairly rewarded and can opt in/out of demand-side flexibility services/products • removing legal barriers • clarifying roles and responsibilities of all involved actors consistent with a level playing field • ensuring prices/incentives reflect market value • examining the role of Distribution System Operators (DSOs) in an evolving market
The advice, launched on 26 June at CEER’s Sustainable Energy Week (SEW) event, is an important contribution to implementing the Energy Efficiency Directive. Later this year, CEER will publish its position on the role of DSOs, followed in 2015 by a benchmarking study on demand-side response and energy efficiency.
For an interesting article on new perspectives from the paper industry on demand-side flexibility, see the latest edition of the ICER Chronicle (international section).
Public Consultations & Events
• Draft CEER 2015 Work Programme (Closing 31/07/2014) • Draft CEER Advice on How to Involve and Engage Consumer Organisations in the Regulatory Process(Closing 08/08/2014) Visit our websiteto be updated on our future consultationsandevents.
• CEER Advice on Ensuring Regulatory and Market Arrangements help deliver Demand-side Flexibility
Press Releases •Consumer-centric retail energy markets shift from advocacy to action (18 June 2014) • Regulators' advice seeks to unlock the demand/consumer side of electricity markets (26 June 2014)
The newly released 2nd edition of the ICER Chronicle includes 8 must-read articles, 2 ICER women in energy (WIE) stories and a video about the ICER WIE e-mentoring programme.
Save the date for the World Forum on Energy Regulation (25-28 May 2015), Istanbul.