EC Launches Citizens' Energy Forum

October 29, 2008 // Published as a news service by IHS

The aim of the forum is to tackle consumer problems and propose practical solutions so that current EU-wide consumer rights exist in practice, not only on paper, and to improve regulatory conditions in the retail markets.

The forum brings together national consumer organizations, industry, national regulators and government authorities to work on key issues, such as switching energy suppliers, user-friendly billing, smart metering and protecting vulnerable groups.

The EC has calculated that, with smart choices, an average EU family can save €1,000 or more in gas and electricity bills per year.

The impact of such choices is all the more important given that around 40% of the EU's energy is used in buildings - including homes and businesses. The resulting cuts in CO2 emissions are a further positive spin-off.

Topics that will be discussed in the Citizens Energy Forum include:

• Billing - A gas or electricity bill is the simplest and best indicator of energy consumption for the average consumer; the bills must be simple, accurate and allow comparisons between providers.

• Energy efficiency - Labels on the energy efficiency of energy-using appliances must be simple and clear.

• Switching suppliers - Switching must be easy, swift and free of charge; information on how to switch must be clear and accessible.

• Smart metering - New technologies can help improve accuracy of bills, ease understanding of how much you pay and enable companies to better advise consumers according to their consumption profile.

• Protecting vulnerable consumers - People who depend on energy to survive must be protected; the forum will address questions such as how to avoid disconnection for people who use heart and breathing support or are undergoing dialysis, and how to deal with people who are in financial difficulties and cannot pay their energy bills. National authorities, consumer organizations and industry should work out solutions to this issue.

"High energy prices are one of the top issues of concern to European citizens," said Meglena Kuneva, EU consumer commissioner. "We need EU-wide efforts to raise standards on a range of issues from clear billing, to smart metering and switching suppliers so that consumers have real choice, can reduce consumption and get value for money."

"We need to watch the energy market carefully to take action against possible abuses. And we need to put protection for vulnerable consumers at the top of the political agenda in what will be a tough winter ahead."

Andris Piebalgs, EU energy commissioner, said, "Given increases in energy costs and the recent events in global financial markets, it is essential that we work closely together to protect the interests of consumers and deliver real outcomes that can make a difference for our citizens."

"The inclusion of consumer representatives for the first time at such a forum will introduce a new dynamic and provide a meaningful voice for consumers in the energy market."

The Citizens' Energy Forum was launched to help consumers by working to enforce their existing EU-wide rights and to provide them with clear, straightforward information on what choices are available to them when it comes to buying their gas and electricity.

The idea of the forum was proposed in the EC's third package for the internal energy market and was presented by Kuneva and Piebalgs at the May 2008 conference on Energy Consumers' Rights.

The forum will develop recommendations aimed at better implementation and enforcement of the rights of energy consumers, and better electricity and gas retail markets.

Background
The EU will continue to watch energy markets, and comprehensive market monitoring consumer data, gathered by the EC and indicating how gas and electricity markets are delivering for consumers, will feed into the work of the forum.

This data will be published annually as part of a broader market monitoring analysis, "The Consumer Markets Scoreboard."

EU member states will also report to the forum on their monitoring of household prices, switching rates or complaints, a new power given to them under the EC's third energy package.

For more information, see the EC's web site on Energy Consumers' Rights and the EC's web site on the opening of energy markets.

Source: European Commission.