The Energy Consumer Code NEON, November 2015
I.
Executive Summary
The European Commission’s Communication on “Delivering a New Deal for Energy Consumers” (July 2015) identifies several obstacles and shortcomings on the retail markets, including difficulties in switching and a lack of appropriate information for consumers on costs and consumption. In this context, important challenges will face consumers – households, businesses and industry alike – while electricity and gas wholesale markets need to change fast in order to face the internal energy market transitions. In this context, a network that promotes shared values and best practice to help consumers to navigate the complex market, involving policy-makers, companies, DSOs, regulators, consumer organisations, ombudsmen and ADR entities and third parties, including ESCOs, should be fostered. The Consumer Code aims to define a set of standards to be guaranteed at EU level, a common framework to protect end consumers with effective standards for the right to access to and use of energy services, the security and quality of supply, access to the grid, data protection, prices and price comparison tools, marketing and sales, switches, moving, contractual terms, unified communications, easily understandable bills, information on real-time consumption with smart meters, and complaint procedures, with the principle of solidarity and responsibility at its core. This work echoes the European Commission’s Communication on “Delivering a New Deal for Energy Consumers” (COM(2015) 339 final) and the 2020 Vision for Europe’s Energy Customers (November 2012) developed by CEER and BEUC. This vision can be characterised by four principles governing the relationship between the energy sector and its variety of customers: reliability, affordability, simplicity, protection and empowerment.
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Content I.
Executive Summary ......................................................................................................................... 1
II.
Context ............................................................................................................................................ 3
III.
Data sources and availability ....................................................................................................... 4
IV.
Communication on “Delivering a New Deal for Energy Consumers”, July 2015 ......................... 5
V.
The Consumer Code ........................................................................................................................ 6 1.
Principles: solidarity and responsibility ....................................................................................... 7
2.
Data management and data privacy ........................................................................................... 8
3.
Affordability ............................................................................................................................... 10
4.
Prices and tariffs ........................................................................................................................ 11
5.
Price comparison tools .............................................................................................................. 12
6.
Marketing and sales .................................................................................................................. 14
7.
Switches..................................................................................................................................... 15
8.
Move-in and Move-out processes............................................................................................. 17
9.
Contractual terms...................................................................................................................... 18
10.
Unified communications ....................................................................................................... 20
11.
Easily understandable bills .................................................................................................... 22
12.
Information on real-time consumption with smart meters .................................................. 26
13.
Complaint procedures, access to ADR and redress ............................................................... 26
VI.
See also ...................................................................................................................................... 28
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II.
Context
NEON, the National Energy Ombudsmen Network, is an independent, not for profit Europe-wide network made up of independent ombudsmen and mediation services in the energy sector, recognised as an independent provider of Alternative Dispute Resolution in their respective countries, consistent with EU directives 2009/72 and 73 (“Third Energy Package”) and Directive 2013/11 on alternative dispute resolution for consumer disputes and Regulation (EC) No 524/2013 on online dispute resolution. In 2010, the energy ombudsmen from Belgium, GB, France and the Spanish region of Catalonia established NEON, to promote their activities and analyse their findings at EU level. Independent ombudsmen and ADR bodies have a key understanding of the market and engage policy-makers regulators, energy providers and consumers in their daily activities. Since the establishment of the network, market-based evidence, complaint data collected by NEON Members and collective work undergone by members on data management, complaint monitoring1 and the “complaints of the future”2, highlighted many of the current shortcomings of the market3. Through the complaints NEON members receive, they also witness the changes of the market, especially in the framework of the Energy Union which aims at putting consumers at the core of the energy market. In the coming years, we should see them evolve from passive end-users to active prosumers. Hence, in its Position Paper on the Energy Union4 in January 2015, NEON made several comments on the proposal for an Energy Union, emphasizing topics of relevance for consumers, in particular: Stakeholders’ shared responsibility on consumers’ engagement in the energy market; The tailoring of the Internal Energy Market for consumers, especially the most vulnerable ones; The central importance of a full implementation of the Third Energy Package; A common framework to protect end consumers with minimum standards for prices and price comparison tools, sales, switches, moving, contractual terms, unified communications, information on real-time consumption with smart meters, easily understandable bills, and complaint procedures; In July 2015, NEON recalled the need for a common framework to protect end consumers – households, businesses and industry alike – in its Position Paper on “Delivering a New Deal for Energy Consumers”5 calling it a “Consumer Code”, a common framework to protect end consumers with effective standards. NEON will organise a roundtable with interested stakeholders at the beginning of the year 2016 to discuss the “new consumers” and the Consumer code.
1
See http://www.neon-ombudsman.org/2015/06/neon-conclusions-on-data-management-and.html, June 2015 See http://www.neon-ombudsman.org/2015/09/neon-provisional-findings-on-complaints.html, September 2015 3 See http://www.neon-ombudsman.org/2015/10/neon-71625-energy-related-disputes.html, October 2015 4 See http://www.neon-ombudsman.org/2015/01/neons-position-paper-on-energy-union.html, January 2015 5 See http://www.neon-ombudsman.org/2015/07/position-paper-delivering-new-deal-for.html, July 2015 2
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III.
Data sources and availability
Members of NEON handled together 72,462 energy-related disputes in 2014. In total, the Ombudsman Services (GB) handled 52,913 energy-related disputes; the French Médiateur National de l’Energie, 14,412; the Belgian Ombudsdienst voor Energie/Service de Médiation de l’Energie, 4,819 and the Catalan Sindic, El defensor de les persones, 318. In 2015, NEON members shared experiences and good practices on complaint handling, data management and monitoring processes with the goal to harmonise the collection of data and identify the main current and future shortcomings of the market. Acknowledging differences between members, this detailed analysis shows that the majority of complaints deal with invoicing and (e-)billing (38%), payment (19%) and metering (14%) issues.
Breakdown per types of disputes Other 1%
Customer Services, redress and privacy 7%
Metering including smart metering 14%
Quality of supply 1% Activation, Disconnection 5%
Payment problems 19%
Invoicing, e-billing problems 38%
Commercial practices 3% Provider change/switching 8%
Connection to the grid 1%
Price/tariff 3%
Source: NEON, October 2015 All members publish annual reports. Each member also produced political and regulatory recommendations to their respective governments and regulators, such as the Belgian ombudsman memorandum to the federal Minister of Energy in 20146 or the Catalan ombudsman report on energy poverty in October 20137, or its report on the right to basic utilities (electricity, water and gas) published in December 20148 In 2014, the review of the Draft Energy Transition Law was an opportunity for the French ombudsman to put forward proposals that he had been advocating for a long time, in order to 6
See http://www.mediateurenergie.be/index.php?option=com_content&view=article&id=53&Itemid=67&lang=fr See http://www.sindic.cat/site/unitFiles/3530/Report%20on%20energy%20poverty%20in%20Catalonia%20def.pdf 7
See http://www.sindic.cat/site/unitFiles/3754/Report%20on%20the%20right%20to%20basic%20utilities. pdf 8
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make the “right to energy” a reality for every French inhabitant. 9 In GB, Ombudsman Services works with Energy UK, the trade association for the energy industry, and other industry bodies to share knowledge about consumer complaints and encourage improvements. Ombudsman Services engage with consumer groups and they attended the National Energy Action (NEA) Fuel Poverty for England event to discuss the consultation on a new fuel poverty strategy and how to help support fuel poor households. Ombudsman Services has ongoing meetings with the Extra Help Unit and Citizens Advice to look at the ways suppliers support vulnerable energy customers. As a network, in 2015, NEON published 11 press release including two position papers; delivered speeches in many EU commission and stakeholders events; participated in several public consultations and EU working groups; organised two working groups and one conference; and commissioned a study on ADR in the Energy Sector in Europe by Dr Naomi Creutzfeldt, ESRC Research Fellow, Fellow of Wolfson College Centre for Socio-Legal Studies - University of Oxford10.
IV.
Communication on “Delivering a New Deal for Energy Consumers”, July 2015
The Energy Union Framework Strategy (COM(2015) 80final) sets out the vision of an Energy Union "with citizens at its core, where citizens take ownership of the energy transition, benefit from new technologies to reduce their bills, participate actively in the market, and where vulnerable consumers are protected". The Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on “Delivering a New Deal for Energy Consumers” (July 2015) identifies several obstacles and shortcomings on the retail markets, including difficulties in switching and a lack of appropriate information for consumers on costs and consumption.
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on “Delivering a New Deal for Energy Consumers” (July 2015) - Extract While the past decade has transformed the energy sector in Europe, retail energy markets, which form the focus of this communication, have not kept up. Obstacles to consumers – households, businesses and industry - fully benefitting from the ongoing energy transition, meaningfully controlling their consumption, and lowering their bills include:
The lack of appropriate information on costs and consumption, or limited transparency in offers, makes it difficult for consumers (or reliable intermediaries and energy service companies, such as aggregators, acting on their behalf) to assess the market situation and opportunities.
9
Version intégrale du Rapport d'activité 2014, English version http://www.energiemediateur.fr/publications/rapports_dactivite.html 10 See http://www.neon-ombudsman.org/2015/03/independent-ombudsmen-and-adr-providers.html, March 2015 5
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Increasing the proportion of network charges, taxes and particularly levies in the average final household electricity bill.
Insufficient competition in many retail markets, a lack of reward for active participation, and difficulties in switching act as disincentives.
Insufficiently developed markets for residential energy services and demand response narrow consumers' choices.
Preventing consumers from self-generation and self-consumption reduces potential gains to them.
Unequal access to information and high entry barriers for new competitors slow down the adoption of available advanced technologies and practices such as smart metering, smart appliances, distributed energy sources and energy efficiency improvements.
The Commission's vision for the new electricity market design aims to deliver a new deal for energy consumers, including by better linking wholesale and retail markets. Taking advantage of new technology, new and innovative energy service companies should enable all consumers to fully participate in the energy transition, managing their consumption to deliver energy efficient solutions which save them money and contribute to overall reduction of energy consumption.
Hence, the European Commission has identified the following three key points to delivering a new deal for consumers: consumer empowerment; smart homes and networks; data management and protection.
V.
The Consumer Code
The Consumer Code aims to define a set of standards to be guaranteed at EU level, a common framework to protect end consumers with effective standards for data protection, prices and price comparison tools, sales, switches, moving, contractual terms, unified communications, information on real-time consumption with smart meters, easily understandable bills, and complaint procedures, with the principle of solidarity and responsibility at its core. Important challenges will face consumers – households, businesses and industry alike – while electricity and gas markets are changing fast in order to face the internal energy market transitions. Ensuring the right to access to and use of energy services, security, flexibility and quality of low carbon energy production and supply, the level of energy prices, demand side management and access to the market and provision of flexible response is the duty of all stakeholders. A network that promotes shared values and best practice to help consumers to navigate the complex market, involving policy-makers, companies, DSOs, regulators, consumer organisations, ombudsmen and ADR entities and third parties, including ESCOs, should be fostered.
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This work echoes the 2020 Vision for Europe’s Energy Customers (November 2012) developed by CEER and BEUC11. This vision can be characterised by four principles governing the relationship between the energy sector and its variety of customers: reliability, affordability, simplicity, protection and empowerment.
1. Principles: solidarity and responsibility The main issues ombudsmen members of NEON witness are linked to solidarity and responsibility. Solidarity means that affordability and access to and use of energy services should remain a priority, while 11% of the EU's population is in a situation where their households are not able to adequately heat their homes at an affordable cost. It means that the costs of the grid should be proportionate, and the monetary incentives should be balanced in order not to be a burden for the consumers who cannot afford to get their own installations (vulnerable consumers, people who are just above the threshold and have limited means). Responsibility means that if we are to make the system work in the long run, the framework must be clear for stakeholders. The respective role of the DSOs and suppliers is particularly important. To that matter, DSOs should act as grid operators and market facilitators. For instance, for local community generation schemes, having in-house experts to intervene on a daily basis and in the case of emergency to avoid any shortages seems necessary. An unreliable management of the microgrid by the local multi-utility would undermine consumer and investor confidence not only in the specific geographical area but everywhere else around. EU laws guarantee that national legislation must ensure the right to have a single contact point to find more information on consumers’ rights12. National regulatory authorities have a duty to help ensure that consumer rights are respected and that consumers are protected in line with EU law. Some public energy independent ombudsmen, members of NEON, act as single points of contact. They give advice for consumers by providing information, awareness, and access as provided by the legislative provisions of the Third Energy Package. They also allow networking with consumers and social organisations. They pay special attention to vulnerable consumers and know how to adapt their messages to target their audience. Responsibility also means that the right to tailored information and education over consumer rights should be guaranteed by all involved parties. Ombudsmen’s experiences show that the energy retail market is not easy, and bills, in particular, are difficult to understand. The whole retail market would benefit from a better consumer understanding and lead to greater trust and engagement. Customers have a right to a variety of information related to their energy supply, including:
Information on their real consumption data and access to that data at no charge, on a sufficiently long given period of time, in order to allow comparison and help managing consumption; Detailed information of their rights in contracts and bills; Information on applicable prices and tariffs and standard terms and conditions (and any changes to these);
11
See http://www.ceer.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/CEER_PAPERS/Customers/Tab3/CEERBEUC%202020%20VISION-joint%20statement_Long_v161014.pdf 12 Directive 2009/72/EC concerning common rules for the internal market in electricity and Directive 2009/73/EC concerning common rules for the internal market in gas 7
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Information on the choice of payment methods; Information (on their bills) regarding the fuel mix of the energy they have been supplied with as well as a reference to existing reference sources, such as web pages, where information on the environmental impact, in terms of at least co2 emissions and the radioactive waste resulting from the electricity produced in the overall fuel mix is publicly available; and Information on how to access complaint handling or out-of-court settlement services.
Nevertheless, information itself is not sufficient. Consumers should be able to use it, and this would only work through a dedicated and tailor-made training approach in order for them to acquire the skills, attitudes and knowledge required to navigate the complex energy retail market. Suppliers, DSOs and all other involved third parties should ensure the right to provide adequate and tailored advice, in order to provide consumers with tariffs matching with their needs.
2. Data management and data privacy Evidence show that 14% of the complaints handled by NEON members deal with data metering issues. The Consumer Code must ensure the right for consumers to be in the 'driving seat' over of their personal and meter data and benefits from the highest level of data protection, security and interoperability. The Consumer Code must also ensure that all authorised parties have access to standardised personal and meter data and facilitate their use and sharing13. Consumers should have easy, free and timely access to their data on a sufficiently long given period of time, in order to allow comparison and help managing consumption. Consumers should be entitled to benefit from personalised guidance and assistance on how to access their data thanks to authorised third parties and intermediaries. Authorised parties should be submitted to the strict conditions of the EU's Data Protection Directive14. Consumers should always have the control over of their personal and meter data. Data privacy should be guaranteed and only third parties, explicitly authorised by the consumers on a written form, should access their data. Authorised parties should include Distribution system operators (DSOs), energy services companies, aggregators, brokers, data handling companies, other intermediary companies and also consumer organisations. Personal and meter data should only be gathered legally under strict conditions, for a legitimate purpose. Furthermore, persons or organisations which collect and manage those personal and meter information must protect it from misuse and must respect certain rights of the data owners which are guaranteed by EU law. The Communication on “Delivering a New Deal for Energy Consumers” acknowledges that “an important part of value in the future energy market will stem from large data flows and the wider integration of information and communication technology into energy systems. Therefore, the data collection and processing party in the context of smart metering systems or other services 13
Working Group Report on e-Billing and Personal Energy Data Management - Report prepared for the 6th Citizens' Energy Forum – December 2013 14 Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data 8
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empowering consumers to act should provide direct access to these data to the customer and any third party designated by the consumer. Access should be effective and non-discriminatory.15 This is essential where the metering or billing entity is also providing other services in the market. While data handling can follow different models16, the neutrality of the entities managing data access is of the utmost importance. For value-added services, only third parties authorised by the consumer must have access to consumer's consumption and billing data. As part of the Digital Single Market Strategy, the Commission will propose in 2016 a European "Free flow of data initiative"17 where ownership, interoperability, usability and access to data (including energy data) will be considered. The energy sector must remain at the forefront of protecting data security as well as privacy and data protection of all consumers. The Commission proposals for the Network and Information Security Directive and for a General Data Protection Regulation, both currently under discussion, address the emerging risks with data handling. In anticipation of such an evolution in the general regulatory framework on data security and privacy protection, the Commission has been working on the relevant sector-specific tools with stakeholders from the energy sector. In October 2014, the Commission adopted a Recommendation18 which provides guidance to the Member States and industry on how to carry out an impact assessment of data protection, allowing them to anticipate potential impacts on the rights and freedoms of data subjects and implement stringent safeguards.19 Following the Recommendation will allow the energy sector to be at the forefront of data protection in the most unbureaucratic and cost-effective manner.” Explicitly authorised parties, such as energy services companies, aggregators, brokers, data handling companies, other intermediary companies and also consumer organisations will need to access data to help consumers achieve better energy deals while relieving them from administrative procedures and cumbersome research. New business models, such as collective schemes and community initiatives will not take off without a safe and non-discriminatory access to standardised consumer data. DSO should act as market facilitators for authorised parties. Standards and interoperability are necessary not only for the smart grids, smart meters20 and smart homes, they are also important for the in-home communication between a smart appliance and energy management systems so that demand-response-ready, in-home equipment can be easy to install and operate. The European Commission and European standardisation bodies21 should encourage and support the industry to finalise and apply such standards.
15
Energy Efficiency Directive 2012/27/EU and Commission Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems 16 Report at https://ec.europa.eu/energy/sites/ener/files/documents/xpert_group3_first_year_report.pdf 17 http://ec.europa.eu/priorities/digital-single-market/ 18 Commission Recommendation 2014/724/EU on a DPIA Template for Smart Grids and Smart Metering Systems 19 The Recommendation promotes the testing and use of a Data Protection Impact Assessment Template developed jointly between the Commission and industry experts to serve as an evaluation and decision-making tool for entities planning or executing investments in the smart grids sector. 20 Commission Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems, of 9 March 2012 21 Comité Européen de Normalisation (CEN), Comité Européen de Normalisation Électrotechnique (CENELEC) and European Telecommunications Standards Institute (ETSI) 9
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3. Affordability Almost one out of five disputes handled by NEON members concern the affordability of energy prices and payment problems. Recalling the work undergone by the London Forum and the Working group on Vulnerable Consumers22, the European Commission published in June 2015 a new study on the state of energy poverty across Europe and ways to combat it23. The study found that while many EU countries do have measures in place to protect vulnerable people, nearly 11% of the EU's population is in a situation where their households are not able to adequately heat their homes at an affordable cost. Furthermore, recent Eurostat statistics24 showed that electricity and gas prices rose faster (2.9% and 2% respectively) than inflation (0.6%) in 2014. The EC Insight-E study shows that energy poverty is estimated to affect around 54 million people in Europe (2012 figures), while other research show that 125 million people in the European Union are currently suffering from fuel poverty and are unable to afford proper indoor thermal comfort25. The scale of the problem is due to rising energy prices, low income and poor energy efficient homes, and it is particularly prevalent in Central Eastern and Southern Europe. Under the EU's Third Energy Market Package, the responsibility for addressing energy poverty, identifying vulnerable consumers and putting measures in place lies with national governments. However, a number of EU countries do not currently identify or quantify vulnerable consumers, and therefore cannot adequately target energy poverty measures. Less than a third of EU countries officially recognise energy poverty, and only a few have an official definition in their national legislation. A recent European Parliament report26 concludes a common definition of energy poverty and a strategy to collect the required data is needed to correctly identify energy poor households. Modernisation of buildings and energy-using appliances is an effective remedy. Obliging energy utilities to provide social tariffs, discounts, or tolerate the accumulation of consumer debt is a shortterm remedy but not a sustainable policy in the long term as it does not tackle the root causes of energy poverty. State-funded subsidies and benefits for energy poor households differ in success. Often they provide lump sum support to low income households and do attempt to target the energy poor. They would also benefit from being provided alongside energy efficiency improvement programs. Monitoring and evaluation of programs is indispensable to assess and improve the effectiveness and efficiency of policies and measures. If policies and measures are to be successful, the targeting and the efficiency of spending must improve drastically. A harmonised definition of energy poverty and vulnerability at European level would allow better comparison and understanding of this growing phenomenon. by providing data, information and coordination, a harmonised definition would enhance the European discussion by providing platforms for dialogue to help identify and recommend best practices; support national policies financially through EU co-ordination, e.g. co-funding of housing stock renovation programs; and the EU should continue to set minimum standards for energy efficiency of buildings and appliances27.
22
See https://ec.europa.eu/energy/en/events/citizens-energy-forum-london Insight-E: Energy poverty and vulnerable consumers in the energy sector across the EU: analysis of policies and measures May, 2015 https://ec.europa.eu/energy/en/news/energy-poverty-may-affect-nearly-11-eu-population 24 See Energy price statistics, May 2015 http://ec.europa.eu/eurostat/statisticsexplained/index.php/Energy_price_statistics 25 Buildings Performance Institute Europe (BPIE) (2014): Alleviating Fuel Poverty in the EU. 26 European Parliament Directorate General for Internal Policies, Policy Department A: Economic and Scientific Policy: How to end Energy Poverty? Scrutiny of Current EU and Member States instruments IP/A/ITRE/2014-06 October 2015 (PE 563.472) 27 See : http://www.europarl.europa.eu/thinktank/fr/document.html?reference=IPOL_BRI%282015%29563472 23
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Affordability requires that all consumers, and at least household customers or SMEs, have a universal right to access to and use of energy services. It means that they should be ensured the right to be supplied, on their territory, with electricity of a given quality and at reasonable prices28; for gas, public service obligations on quality and price of supplies29 can usefully supplement the system. As already provided in the directives, a supplier of last resort for electricity and for gas would ensure the “right to energy”; and would avoid disconnections from the electricity or gas networks. These provisions deserve to be underpinned to be effectively enforced and implemented in all Member States. Affordability also means that the costs of the grid should be proportionate, and the monetary incentives should be balanced in order not to be a burden for the Consumers who cannot afford to get their own installations (vulnerable consumers, people just above vulnerability or poverty threshold and have limited means). When dealing with investment in energy efficiency and renewable energy project funding and incentives, public powers and regulators should take into account the public interests and the economic, social and ecological impact of these investments and the given incentives. Average consumers with limited means, who cannot afford to get their own installation, should not be carrying alone the burden of those expenses and should be able to see quickly the benefits of those investments. Data show that the Internal Energy Market is still not achieved, and essential and ambitious actions from all stakeholders are required to empower consumers. It seems clear that the market must be tailored to the needs and interests of the different categories of users and consumers, especially the most vulnerable ones.
4. Prices and tariffs NEON highlighted that that 3% of the complaints handled by its members are related to prices and tariffs issues. “Price” or “tariff” should be understood as the total price to be paid by the consumer, comprising the energy price, network tariffs, taxes and levies; - Energy price: the price of the energy component (gas or electricity) within an energy contract, which the supplier charges the end users (excluding network tariffs, taxes and levies); - Network tariffs: the transport and distribution costs payable to the network manager and approved by the (competent) regulator. Regulation of retail prices could represent an obstacle to the expansion of demand response and advanced time-based pricing mechanism which rewards flexible consumption. But phasing-out completely of the regulated market may not be an ideal solution for many citizens as existing social security systems and energy saving support measures are not always sufficient to tackle energy poverty. Hence, backed with the expertise of social workers and local welfare agencies in the field, in the absence of sufficient alternative support mechanisms, market-based regulated prices, social tariffs limited to a well-defined group of vulnerable consumers and public service obligations can be (even temporally) useful and helpful to reach the goals of the Energy Union. 28
Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC - Statements made with regard to decommissioning and waste management activities 29 Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC 11
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When choosing demand response, consumers should be entitled to dynamics price signals and pricing based on advanced time-based pricing mechanism. Nevertheless, consumers unable to shift their demand must not be penalised. E-bills could come at an appropriate discount compared to paper bills, reflecting savings in administrative costs30.
5. Price comparison tools Regulators are best placed to define the criteria of transparency and reliability of price comparisons tools and to assess them. In 2012 CEER published Guidelines of Good Practice on Price Comparison Tools with 14 recommendations which cover the following themes: independence, transparency, exhaustiveness, clarity and comprehensibility, correct and accurate, user-friendliness, accessibility and customer empowerment. 31
CEER Guidelines of Good Practice on Price Comparison Tools, 10 July 2012 – Recommendations (extract)
Final recommendation 1: Any price comparison tool must be independent of energy supply companies, giving the user a non-discriminatory overview of the market. The provider of a price comparison tool should show all information in a consistent way. Final recommendation 2: There is always a role for NRAs in ensuring that PCTs work well to protect and empower customers. There are different ways NRAs can ensure this:
Self-regulation by PCTs may be appropriate as a first step. Where self-regulation is used, the NRA or another public body has a role to actively monitor the standards in place. Where self-regulation is not appropriate or is not sufficiently protecting customers the NRA or another public body should establish a voluntary accreditation scheme for PCTs or mandatory regulation of all PCTs. NRAs or another public body may also decide to establish their own PCT service where no such private service exists or to compliment commercial PCTs
Final recommendation 3: PCTs should disclose the way they operate, their funding and their owners/shareholders, in order to provide the customer with transparent information on the impartiality of their advice. This information should be presented in a clear way to customers. Final recommendation 4: Ideally, all prices and products available for the totality of customers, if relevant to the customer, should be shown as a first step. However, if the presented information cannot give a complete overview of the market, the price comparison tool should clearly state this before showing the results of the price comparison. After the initial search, the option to filter results 30
Recommendation from the Working Group Report on e-Billing and Personal Energy Data Management prepared for the 6th Citizens' Energy Forum – December 2013 31 http://www.energyregulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/CEER_PAPERS/Customers/Tab3/C12-CEM-5403_GGP-PCT_09Jul2012.pdf 12
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should be offered to the customer to select the offerings corresponding with his or her preferences. Final recommendation 5: Costs presented on the PCT should always be presented on the primary output screen in a way that is clearly understood by the majority of customers, such as total cost on a yearly basis or on the basis of the unit kWh-price. This should include any discounts and note clearly when those discounts end. It is also very important to indicate clearly that prices shown as a total cost are an estimation, as they are based on historic or estimated consumption. This is particularly important for floating price products, where unit prices are susceptible to change during the contract. Final recommendation 6: Fundamental characteristics of all products, for example, fixed price products, floating price products or regulated end-user prices, should be presented on the first page of the result screen. This differentiation should be easily visible to the customer. Explanations of the different types of offers should be available to help the customer understand their options. Final recommendation 7: The price comparison tool should offer information on additional products and services if the customer wishes to use that information to help choose the best offer for them. Final recommendation 8: Price information used in the comparison should be updated as often as necessary to correctly reflect prices available on the market. Final recommendation 9: The user should be offered help through default consumption patterns or, preferably, a tool that calculates the approximate consumption, based on the amount of the last bill or on the basis of other information available to the user. Final recommendation 10: To ensure an inclusive service at least one additional communication channel (other than the Internet) for getting a price comparison should be provided free of charge or at minimal cost. Final recommendation 11: Online price comparison tools should be implemented in line with the Web Accessibility Guidelines (WCAG) and should ensure that there are no barriers to overcome to access the comparison. Final recommendation 12: Customer awareness and trust of PCTs is important. Where the PCT is run by the NRA or a public body they should consider a way to promote the service to customers. Where the NRA or a public body is regulating/ /accrediting/actively monitoring a privately run PCTs they should consider establishing a marker or logo so it is clear to customers which PCTs meet the necessary standards. Final recommendation 13: PCT providers should consider how best to empower customers to use their service and make appropriate choices for their needs. Background information on market functioning and market issues such as price developments should be provided if the customer wants this information. Alternatively, a PCT could provide links to useful independent sources of information. Final recommendation 14: PCT providers should ensure that all the information provided to customers is clearly written and presented. Using consistent or standardised terms and language within and across PCTs can help to enable understanding.
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Bodies in charge of providing information to consumers (single point of contact) and organisations in charge of ADR (or an independent ombudsman)32, as well as consumer associations, i.e. impartial bodies with no advertising or consumer champion role, thanks to their independence from suppliers, are best placed to develop neutral and reliable tools. This may also be the case of private companies, as long as they do not favour certain suppliers that would fund them or with which they have special agreements. For all tools implemented, an annual auditing of the regulator would be necessary: the list of approved comparison tools and a summary of the auditing may be published and accessible online. If the regulator sets up a price comparison tool, another authority should be responsible for carrying out auditing, even from another Member State (peer review). Comparison against current contracts would need to be completed using a standard data set (e.g. average usage), or use a basic tariff structure where a consumer finds the unit price and standing charge, or in the best of cases, using actual consumption levels. Suppliers should include in their website an indicative simulator in accordance with the calculation method and terms and conditions set by official comparison tools. The tariff simulator will be easily accessed and clearly visible on the suppliers’ websites. Furthermore, to protect any consumer from an unwanted contract, no other personal data may be requested than those strictly necessary to carry out the price comparison. Suppliers should be free to supplement the result of the price simulation with promotional data. When they choose to do this, the fundamental terms and conditions and duration of the promotion shall be clearly stated. Any promotional benefits granted should be mentioned separately and the conditions under which or times at which they are granted shall be expressly stated. The consumer should have the possibility to print out the result of the price simulation or store it on a permanent data carrier. If and when this is done, the data the consumer entered should also be reproduced, as well as the date on which the price simulation was made. Individualised price simulation of this kind should also be requested free of charge via other means, such as by telephone, post or fax. Comparing and assessing the contractual quality and customer satisfaction will also be necessary. Customer rating systems for all suppliers and offers in the market should be made widely accessible. Data on suppliers collected by the ombudsmen and ADR entities can also be used as a good indicator of a company’s performance in the market.
6. Marketing and sales Problems with sales and commercial practices represent 3% of the complaints and disputes received by NEON members, and concern households and professional end-users, especially SMEs. Nevertheless, certain members do not have the jurisdiction over commercial practices (such as the French ombudsman): this situation has and impacts the final level.
32
In France, an official comparison tool was set up jointly by the Regulatory Commission and the National Energy Ombudsman in 2009 (http://comparateur.energie-info.fr). It is now managed by the Ombudsman only. 14
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A switch to another supplier or a change of contract with the same supplier may only take place on the basis of a written and signed contract. Telephone and online sales between a supplier and a consumer, and sales that are concluded outside the usual selling areas should be confirmed by a written letter or e-mail personally addressed to the consumer. The notification will clearly and unambiguously state: - the date on which and the way in which the contract was concluded, - the identification of the chosen product/tariff option33, - the price sheet and the price to be paid as actually in force at that time, - the agreed method of payment, - for variable-price contracts, the parameter formula and the value of the parameters at the time the contract is entered into, - the contract terms and conditions, - a mention of the EAN code34, - the postulated commencement date, and for fixed-term contracts the termination date or term of the agreement, - the contact details if the consumer has a complaint to make, - the possibility and means of rescission. The confirmation also contains a copy of the contract signed by the supplier, including the general terms and conditions and any special terms and conditions. The consumer must expressly confirm this contract in writing. A switch to a new supplier or a change of contract with the same supplier is prohibited if the consumer has not given his written confirmation, except where the original term remains the same and the basic conditions do not change to the consumer’s disadvantage. In this respect the subject of the consent must be stipulated in specific terms. The consumer’s express written confirmation may be forwarded to the supplier by post, e-mail or fax or by means of any other permanent data carrier or other electronic means (the sole purpose of which being to record the consumer’s agreement35). The contract will only be binding and the order for the switchover may only be carried out after written confirmation and after expiry of the rescission period of 14 calendar days counting from the consumer’s written confirmation of the contract. Without prejudice to the legal provisions, the consumer’s express written confirmation is not required when the change of contract with the same supplier only implies a cheaper tariff for the consumer. SMEs should benefit from the rights given to natural persons given in the Directive 2005/29/EC on Unfair Commercial Practices.
7. Switches The EU's internal energy market gives all consumers the right to shop around for the best energy deal and energy source of their choice. Yet 8% of the disputes handled by ombudsmen, members of NEON, concern failures in the switching process. Furthermore, many citizens remain unaware of their
33
This also implies that an explicit indication is given as to whether it concerns the supply of gas, electricity or both. Insofar as this can be provided by the distribution network manager at the new supplier’s request. 35 It is up to the supplier to furnish proof of the consumer’s express confirmation. 34
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right to switch supplier and energy contract. Ombudsmen notice mistrust in the market, indecision and the perceived lack of benefits as the main obstacles to switching. Hence, making the switch needs technically easy, quick and reliable is not sufficient. Removing switching fees, termination fees and penalties that limit consumer choice and competition overall should be considered. Easily accessible, transparent, trustworthy and readily comparable information covering price as well as contractual quality and customer satisfaction, should be made widely accessible. Technically, there should not be any constraining commitment period, in compliance with technical needs (3 weeks). Each consumer should be allowed the right to change offer when they want, without paying termination or exit fees. The presence of self-generation installations should never be an obstacle to the switching process. Suppliers should take all measures to avoid that a change of gas and electricity supplier entails negative consequences for the consumer. The new supplier should take care of the supplier switching, and the respect of statutory period. In order to attain this goal, the new supplier is obliged to give the previous supplier notice of termination of the current agreement. The new supplier must be able to prove that it has started a contract with the consumer. The new supplier takes care of the termination/cancellation of the new customer’s current contract with the former supplier. It is only released from this duty by the consumer in a separate, express written request. Guidelines and technical regulation should be enforced when a request for a switch is addressed to the distribution network manager concerned. The new supplier makes sure that the switch passes off correctly, and the new supply contract only enters into force on the date that was agreed with the consumer. The suppliers shall check that the following objectives are met: In the case of the new supplier: - avoidance of two supplying contracts with two different suppliers; - avoidance of unlawful switches. In the case of the former supplier: - avoidance of countless final settlement invoices long after the initial contract has been brought to an end; - avoidance of administrative costs charged by the supplier on account of contract termination or cancellation. The new supplier is obliged to (aside from the technical aspects concomitant with a transfer): 1. When negotiating a switch the new supplier inquiries about the existing contract. It informs the consumer clearly of the conditions and the established time limits for the start of the new contract. 2. The new contract takes effect at the earliest when conditions and the established time limits have lapsed.
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3. The new supplier assuming responsibility for the termination/cancellation of the customer’s current contract agrees to be liable for all loss or damage that the consumer incurs further to the new contract. On termination of the contract, the previous supplier undertakes to comply with the following: 1. The previous supplier shall make every effort to send the consumer the final invoice within six weeks of receipt of the meter readings from the distribution system operator. It will use all reasonable means to obtain the necessary meter readings from the distribution system operator in question. This final settlement of account will contain all costs and allowances, with the exception of retroactive consumption adjustments, network tariffs, levies and surcharges and contributions. 2. Any refund of credit balances to the consumer should be made within 15 calendar days of receipt of the final settlement. 3. Barring one final settlement, the previous supplier shall not charge a consumer who has switched supplier any cost whatsoever on account of contract termination.
8. Move-in and Move-out processes When a consumer moves out the supply contract is continued at the consumer’s new address, unless they terminates the supply contract, move abroad or to another region, or move to a housing where there is no separate meter for electricity and/or natural gas consumption or due to the fact that the consumer goes to live with another consumer who already has a supply contract. Termination of the contract in these cases does not generate termination fees. Administrative expenses or other similar costs cannot be charged either. After the consumer has given their supplier notification of their move out, at the latest 30 calendar days after the date of the move-out, the supplier stops charging the consumer for energy consumption in their previous dwelling from the date of the move-out. If the supplier was not informed of the move out before this date, the supplier stops charging for energy consumption in the previous dwelling the day after the date on which consumer notifies the supplier of the move. When preparing the final settlement invoice for the previous dwelling, the supplier uses the meter readings recorded on the date of the move that was forwarded to it by the consumer, unless examination by the network manager reveals that these meter readings are not correct. The supplier may ask the consumer to forward these meter readings in written form or via an electronic format. The supplier makes a standardised energy take-over document available to the consumer in both paper form and electronic form. The consumer should by preference use this to give notice of a move and the meter reading. The consumer may also notify his supplier of a move and the meter reading at the time of the move in another way. Documents, such as the energy take-over document, which are signed by the departing consumer and the person taking over the housing, record the final meter readings but are subject to the rectification of material mistakes. In no case shall the supplier draw up a final settlement invoice based on its own estimations of the meter reading.
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When a consumer who is moving house signs a document recording the meter readings or reports a meter reading in this context, this may never be regarded as a request for or the acceptance of a contract with a supplier. The presence of self-generation installations should never be an obstacle to the issuance of the final invoice.
9. Contractual terms The suppliers shall make sure that the most recent and adapted version of their general and/or special contractual terms and conditions, in full, can be simply consulted on, downloaded and printed off from their commercial website. These shall be easily accessible for the consumer, without the latter having to take any steps in a commercial or purchase procedure. The supplier will ensure that it is clear for the consumer which special terms and conditions are applicable to the different products offered. To this end they will make a clear and unambiguous reference on their commercial website to their general and/or special contractual terms and conditions, mentioning the date on which these were amended for the last time. The consumer can also request the general and/or special contractual terms and conditions via other means, such as by telephone, post or fax. In their general and/or special contractual terms and conditions with the consumer, suppliers make sure the reciprocal rights and obligations of the respective parties are well balanced. In order to ensure a balance in legal and economic terms in the contractual relationship with the consumer, suppliers and third parties incorporate the content of the following provisions into their general terms and conditions, and as the case may be, into their special terms and conditions, in such a way that they meet the following objectives: -
Guarantee and ensure a correct balance in responsibility for the supply contract between the supplier or the third party and consumer; Ensure payment and complaining terms long enough; Insure sufficiently flexible periods of notice for termination and several payment possibilities; Guarantee the company does not breach any provisions of the Unfair Commercial Practices Directive and the related Guidance36.
To this end, in their general/special contractual terms and conditions, the suppliers commit to: 1. Not to include any provisions stipulating that the consumer shall be liable vis-à-vis the supplier for loss or damage resulting from errors or shortcomings on the part of its subcontractors and representatives, DSO, or other third parties, even where no error or omission can be ascribed to the consumer.
Directive 2005/29/EC on Unfair Commercial Practices and Commission Staff Working Document Guidance on the Implementation/Application Of Directive 2005/29/EC on Unfair Commercial Practices SEC(2009) 1666 36
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2. Not to include any provisions limiting excessively liability for their own obligations in respect of the consumer except in the case of force majeure. 3. Not to include any provisions justifying the immediate termination or cancellation of the contract on the grounds of the mere suspicion of insolvency or an investigation of creditworthiness. 4. Not to include any provisions that provide for the possibility of the company or the customers to be transferred to another supplier without providing for the continuation of the service in the same conditions. 5. Unilateral modifications of fundamental terms and conditions or changes in energy prices, based on elements depending solely on the supplier’s will, are prohibited. 6. In the case of a unilateral modification of the general/special contractual terms and conditions or a change in the prices that does not stem from a contractually agreed price review provision based on objective parameters that have been specified in a sufficiently detailed manner, when these are to the consumer’s disadvantage, the consumer will be personally notified thereof at least two months before they enter into force. 7. To stipulate expressly that should a consumer oppose payment of a bill by standing order, this consumer will not be charged any costs whatsoever for this opposition. 8. To stipulate expressly that the consumer has the right to have the settlement bill or final invoice excluded from payment by standing order. 9. To provide for a minimum period of 15 calendar days between the final billing and the execution of the standing order instruction. This minimum period may only start to run from the date of receipt of the final bill. The third calendar day after the date of sending is considered as the date of receipt. 10. Should the consumer be entitled to a payment from his supplier on account of incorrect billing or a late refund, occasioned by the supplier, make provision for the compensation to the consumer’s benefit, or in the absence thereof interest on arrears at the legal interest rate within a reasonable period of time. 11. To provide, in the event of the consumer being asked to pay a guarantee by way of a security for amounts payable, an accurate and objective description of the conditions governing the request for this guarantee and the basic rules and methods used for calculating the guarantee amount. 12. To provide for various payment possibilities, including at least payment by standing order and bank transfer. No additional costs may be charged for payments made by transfer. The two payment possibilities are both guaranteed under these terms and conditions for every tariff option offered by the supplier. 13. To make provision for complaints (protest) period for the consumer in the event of incorrect billing of at least 12 months from the date of receipt stipulated in the bill in question. However, when the complaint relates to an incorrect setting off of discounts, price 19
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reductions or other benefits laid down under the regulations, this limitation in time does not apply insofar as the rules and regulations in question make provision for this. 14. To provide for the possibility of asking for a review of the estimated consumption and/or interim bills. The reasoned decision to carry out a review should follow within a reasonable period after the request was made. 15. Not to include any provisions exempting or unreasonably capping the amounts if and when the supplier is liable to pay compensation. 16. Every year a final invoice should be drawn up unless the supplier has not received the meterreading details. On no account may the supplier make its own estimate of the consumption. 17. Expressly ensure that the period in which the supplier reimburses the consumer (when the settlement bill or final bill shows a credit amount to the latter’s benefit) corresponds to that in which the consumer should pay any amounts payable. If the supplier does not yet know the consumer’s bank account number, this period for reimbursement will start to run from the moment the supplier has been informed of the consumer’s account number.
10. Unified communications Clarity of information provided to consumers is an issue for consumers, suppliers and third parties. The Communication on Delivering a New Deal for Energy Consumers sees “the lack of appropriate information on costs and consumption, or limited transparency in offers, makes it difficult for consumers (or reliable intermediaries and energy service companies, such as aggregators, acting on their behalf) to assess the market situation and opportunities”. The minimum standard for unified communications across all suppliers and third parties would empower consumers by facilitating assessment and comparison and ease their understanding. Engaging with third parties and switching between suppliers may be a more attractive prospect for consumers as well. To improve communication aimed at the consumer, suppliers and third parties commit to the following: 1. On all document and bills, the suppliers will mention the contact details of the customer service department; and will make sure consumers are given this information on their request. All bills should include the contact details of the body in charge of ADR, such as an energy ombudsman. 2. When the contract enters into force, the consumer is expressly informed of the following data in an unambiguous and clearly visible manner: - The contracted prices; - The product or products to which the contract relates; - If necessary, the parameter formula used and the value of the parameters of the quarterly period in question; - The frequency of instalment/advance payments; - If possible, the amount of the advance payments.
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The consumer can always ask their supplier for a copy of the contract and the price sheet applicable to him. 3. All documents issued by the company are dated. 4. When a supplier or a and third party does not want to proceed with tacit renewal, it sends the consumer a new draft supply contract at least two months before the date on which the current contract is due to come to an end. In so doing, it explains clearly and precisely the way in which the new proposed conditions differ from the existing contract. The consumer should expressly confirm this agreement with the new proposal by letter or via some other permanent data carrier, or to change supplier. 5. Within 12 months of the settlement bill, consumers can receive a more detailed document containing detailed information on the billed period, the advance payments made with a mention of the payment date, the various price components and a detailed calculation of the indexation mechanism. 6. Energy suppliers and third parties commit to making sure that their bills quote all the data and references that are compulsory on the grounds of European, federal or regional regulations. They also undertake to make sure that, in consideration of these regulations, their bills are clear, legible and comprehensible and enable an easy comparison for the consumer. In order to meet this objective: -
they shall as far as possible use uniform and simple terminology; a glossary is should be permanently available on the supplier’s website; the supplier will send a copy free of charge to any consumer so requesting; they shall use uniform terminology to explain the levies, contributions, taxes and network tariffs imposed by law; they shall combine data belonging together on the bills; they shall see to it that any textual mention that the supplier itself is free to make and decides to include on its bill does not compromise the objectives of clarity, comprehensibility and comparison on account of its content, form or nature or the place where it appears.
When new levies or surcharges are introduced, the suppliers will use uniform terms to denote these. 7. When establishing the amount of the advance payments, and whenever this amount changes, per type of energy, the energy suppliers shall provide consumers with an explanation of the calculation method before this advance payment amount is actually charged. When the energy supplier does follow the consumer’s request for a review of an advance payment or only does so partially, it will give grounds for its decision on the basis of the calculation method used. Timely information is forwarded personally to the consumer. This information can be sent together with the bill or separately and can be explained by means of examples. For further details, the consumer can be referred to the website. A consumer who makes a request to this end by telephone, fax or post must be given the additional information posted on the website free of charge by his supplier, on simple request. 21
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8. The supplier’s website provides consumers with information on the following elements. These data are to be found by means of clear and easy-to-use links. The consumer should in this way be able to consult information without having to take any steps in an order procedure. These data can always be printed out and may be stored on a permanent data carrier; when this is done, the data are dated. A. The tariff simulator. When accessing this price simulator, the user is also explicitly referred to the tariff simulator of the regional regulators, the hyperlink to which is given. B. The general and special terms and conditions per type of energy, per contract or per product. C. The way in which the price in variable-price contracts is calculated. D. The contact details of the body in charge of consumer protection enforcement and the official body in charge of Alternative dispute resolution for consumer disputes such as the Energy Ombudsman.
11. Easily understandable bills The majority of complaints handled by NEON members deal with invoicing and (e-)billing (38%) issues. NEON participated in the EC Working Group Report on e-Billing and Personal Energy Data Management prepared for the 6th Citizens' Energy Forum – December 201337 and supports its conclusions. NEON also supports the Guidance note on Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EC, and repealing Directives 2004/8/EC and 2006/32/EC Articles 9 - 11: Metering; billing information; the cost of access to metering and billing information38. In France, the “arrêté du 18 avril 2012 relatif aux factures de fournitures d’électricité et de gaz naturel”39 provides the billing presentation conditions. In Belgium, this is set by the Belgian “Consumer Agreement”40 (2014). Clarity of bills is an issue for both consumers and suppliers. The majority of bill content is required either by EU or national regulations leaving suppliers with the little opportunity to respond to consumer needs. User-friendly bills, with minimum clarity and comparability standards for the EC Working Group Report on e-Billing and Personal Energy Data Management prepared for the 6th Citizens' Energy Forum – December 2013 38 Guidance note on Directive 2012/27/EU on energy efficiency, amending Directives 2009/125/EC and 2010/30/EC, and repealing Directives 2004/8/EC and 2006/32/EC - Articles 9 - 11: Metering; billing information; cost of access to metering and billing information 39 JORF n°0099 du 26 avril 2012 page 7448 40 Accord “Le Consommateur dans le Marché libéralisé de l’électricité et du Gaz/ Akkoord “De consument in de vrijgemaakte elektriciteits- en gasmarkt”, 2014. Compliance with the provisions of this agreement constitutes fair trade practices towards the consumer in accordance with the provisions of the Market Practices and Consumer Protection Act of 6 April 2010. The signatory parties undertake to comply with the provisions of this agreement to the letter. 37
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contents of consumer energy bills, will be useful if consumer needs or demands are well taken into consideration. Utility bills must be clear and contain useful information. Therefore, they must allow consumers to understand how much they are paying for the electricity or gas they have consumed, globally and per kWh, and include the amount paid per various charges, taxes and network costs. Experience show that consumers want to see how much energy they have used, what it costs, how much they have paid and whether they owe anything. Forecasting and detailed calculations may be important to some consumers but not all, so this information may be better placed in supplementary booklets issued with the bills. Few consumers realise what the energy charges include, e.g. network costs, clarity about this can be provided without having to break down the individual costs on a bill. Having the same format or framework across all suppliers would provide consumers with ease of comparison. Hence, it should be easier for consumers to compare the prices they pay per kWh with other offers from different suppliers and switch if they find it necessary. Switching between suppliers may be a more attractive prospect for consumers if it means they can expect to have the same kind of bill format and would ease their understanding. Utility companies must clearly inform citizens on the channels for claims; alternative dispute resolution resources or the ombudsman contact details. This information must be clearly stated in contracts, bills, websites and establishments or offices of utility companies or their agents. The choice between the types of the bill (paper or e-bill) should remain in the hands of the consumer, without adding any cost to the consumer who would choose a paper bill. Nevertheless, ebills could come at an appropriate discount compared to paper bills, reflecting savings in administrative costs. Consumers who do not have an Internet access should not be the victims of the digital divide.
Example: Communication addressing the consumer on the bill 9. On all bills from a supplier or on any separate document attached to the bill, the suppliers should mention: -
The term of the contract; • for fixed-term contracts, a mention of the commencement date and termination date, and if need be the possibility of tacit renewal; • for contracts for an indefinite period, the commencement date; - The terms and conditions of termination; - The contact details of the customer service department; - The way in which bills can be protested; - The contact details of the independent ombudsman for energy or independent ADR body; - A mention of the general and special terms and conditions in full that can be consulted on the website; - A mention of the EAN code. 10. With a view to making it easier to read and compare their bills, the energy suppliers shall bring together the data appearing on the bills under the following headings: 23
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On the first page: Administrative information A. Data on the customer: 1) Name 2) Billing address B. Data on the point of supply: 1) Supply address 2) Corresponding EAN code(s) C. 1) a. b. c. 2) a. b. c.
Data on the supplier General Name/company name Address of the company’s registered office Enterprise number Customer service department: Telephone and fax number Postal address for correspondence E-mail address or URL to the standardised questions or complaints form on the supplier’s website d. The way in which bills can be protested D. Data on the distribution network manager: 1) Name/company name 2) Telephone number in the event of a power failure and/or a smell of gas E. 1) a. b. c. d. 2) a. b. c. d. e.
Bill details: Billing information General: Date of the bill Number of the bill Customer number If necessary, the customer’s VAT number Amount and final date for payment The unit price per kWh The total consumption billed The total amount to be paid or the refund to which the consumer is entitled If necessary, the total amount of the advance payments that have been set off The account number to be used for off-setting of the bill or into which the refund will be paid; if the supplier does not have a bank account number for the consumer, this is requested f. The reference to be mentioned when payment is made g. The last date for payment or refund h. Any reminder costs or administrative expenses in the case of late payment i. If need be, the mention that payment is made by standing order, and the date on which or from which the instruction for payment will be presented to the financial institution
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j.
Complaints handling 1. The steps to be taken in the procedure if the consumer protests a bill 2. The statement that in the event of a dispute the consumer can approach the Energy Ombudsman, with a mention of the contact details
On the following pages: A. Breakdown of the amounts charged in the case of a settlement bill or final bill (per type of energy): 1) Meter reading at the beginning of the period and date of the reading 2) Meter reading at the end of the period and date of the reading 3) Corresponding meter numbers 4) The commencement date and final date of the billed period 5) The total consumption charged for the billed period 6) The composition of the amounts charged for the recorded period, subdivided into the following headings: a. the energy cost b. costs of use of the networks, for electricity broken down into transmission and distribution, with a mention of the tariffs c. levies collected by all public authorities to be globalised by the latter according to categories 7) A detailed list of the advance payments set off, their amounts, and the billing or payment date B. Balances still outstanding: The energy supplier may mention the balances still outstanding C. 1) a. b. c. d. 2) 3)
Data concerning the contract: The precise and accurate information on the current contract for each EAN code: the term of the contract, the date on which the contract starts, and if necessary the date on which it ends, the terms and conditions for termination, if necessary, the possibility of tacit renewal, The products or services forming the subject of the contract, A URL to the supplier’s website where an explanation on the indexation parameters is available, 4) A URL to the general and special terms and conditions D. Various mentions (per type of energy): 1) The evolution of the consumption, of the unit price per kWh and of the total price over the past three years; 2) The nature of the primary energy sources used for the electricity supplied: renewable energy, total energy, fossil fuels, nuclear energy or unknown; 3) The average price to residential consumers in Belgium (regulators’ data), insofar as this is available. E. Price comparison: the hyperlink to the official tariff simulator 25
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12. Information on real-time consumption with smart meters The internal energy market legislation and the Energy Efficiency Directive41 have established consumer rights to accurate metering and consumption information. Transparent and up to date billing information are said to increase consumer trust and engagement. However, the vast majority of Europeans receive this information once or twice a year at most. NEON highlighted that 14% of all the complaints received in 2014 concern metering issues. Research commissioned by the EC showed that the introduction of metering and billing of individual consumption in multi-apartment and multi-purpose buildings can trigger a reduction in the demand for heating/cooling by 10- 30%42. ICT-based solutions are also seen to help consumers reduce their consumption simply by changing their heating habits. Regulation (EU) 254/2014 of February 201443, approves the multiannual consumer program for years 2014-2020, the general objective of which is to guarantee a high level of protection for consumers, to empower them and place them at the center of the domestic market within the framework of a general strategy for smart, sustainable and inclusive growth. Objective II of the Program, devoted to consumer information and education, requests that the specific needs of vulnerable consumers be taken into account, and proposes a stepping up of transparency in consumer markets and consumer information, ensuring that consumers have comparable, reliable and easily accessible data with a view to helping them compare not only prices but also quality and sustainability of goods and services. That is why the program seeks the enhancement of actions that improve the transparency of consumption markets and cites, as an example, the energy market. All consumers, and reliable intermediaries and energy service companies contracted by consumers to act on their behalf should have easy access to their real- or near- time consumption data to enable them to adapt consumption and save energy. Such real time data is not necessary for billing purposes and therefore could be accessible to consumers directly from the metering system via a standard interface.
13. Complaint procedures, access to ADR and redress The 2015 Consumer scoreboard44 reports that still, a quarter of all consumers encountering problems do not complain. The majority of consumers who did not take any action in case of a problem were discouraged by the perceived difficulties (e.g. low likelihood of success, lack of information, the length of procedure). Nevertheless, satisfaction with complaint handling is highest amongst those consumers who complained to Alternative Dispute Resolution (ADR) bodies, even though the use and knowledge of
Directive 2012/27/EU on energy efficiency – October 2012 Source: Annex to the Impact Assessment for the Energy Efficiency Directive, SEC(2011) 779 final, 22.6.2011 43 Regulation (EU) No 254/2014 of the European Parliament and of the Council of 26 February 2014 on a multiannual consumer programme for the years 2014-20 and repealing Decision No 1926/2006/EC 44 http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/index_en.htm 41 42
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these bodies are still relatively low. Further development of Alternative Dispute Resolution (ADR) 45 promises more effective consumer redress. Consumer satisfaction, trust and will to engage in the market will increase with more effective consumer redress and underpinning ADR mechanisms. Hence, the privacy policies on companies’ websites should include a link to the alternative dispute resolution (ADR) provider. All bills should include the contact details of the customer service and the body in charge of ADR, such as an energy ombudsman. In the event that the complaint is not managed to the consumer satisfaction, the right to send the complaint to a readily available, inexpensive, and independent body for out of court dispute settlement, such as an energy ombudsman, is guaranteed by the Third Energy Package (2009) and the ADR directive. The electricity and/or gas supplier and all third parties have to provide consumers with information on how to file a complaint. Consumers shall be free to choose the way in which they address their questions or lodge their complaints with the supplier and third parties. Companies commit that any oral agreements made with consumers are confirmed by letter, e-mail or text message depending on the nature of what has been agreed, so as to avoid any misunderstandings. a)
Handling of questions and complaints:
Consumers are entitled to expect a high standard of service in the way the complaint is managed by the company. The suppliers and third parties commit to employing all reasonable means to improve their internal procedures for the recording, traceability and processing of complaints by, for example, using short waiting times, dealing with complaints within a reasonable period of time and offering standardised complaints forms on the website. Suppliers and third parties agree to answer consumers’ questions and complaints within ten working days. This answer will at least state whether or not the complaint is pertinent or needs to be examined in further detail. In the latter case, they will mention the date by which the consumer will receive a definite reply. When the suppliers and third parties need information from other third parties (e.g. the DSO) for their answer, they will inform the consumer, stating the information they need in this case and who they have to obtain it from, and will say how long it will be after they have received this information before the consumer will be given an answer. b)
Disputed bills
If the complaint about a bill is pertinent or has to be further examined, collection by the supplier of the outstanding and contested amounts is immediately suspended upon receipt of the complaint. The answer the supplier gives the consumer will clearly mention this. It will clearly state the noncontested amount and the date by which this should be paid by the consumer. On no account whatsoever may costs be charged for the handling of complaints.
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VI.
See also Consumer Markets Scoreboard EC Communication – Delivering a New Deal for Energy Consumers – July 2015 EC Staff Working Document – Best Practice on Renewable Energy Self-consumption – July 2015 Energy Union Package, A framework strategy for a resilient Energy Union with a forwardlooking climate change policy – February 2015 Commission Recommendation 2014/724/EU on a DPIA Template for Smart Grids and Smart Metering Systems – October 2014 Regulation (EU) No 254/2014 of the European Parliament and of the Council of 26 February 2014 on a multiannual consumer programme for the years 2014-20 and repealing Decision No 1926/2006/EC – February 2014 Vulnerable Consumer Working Group Guidance Document on Vulnerable Consumers – Report prepared for the 6th Citizens' Energy Forum – November 2013 Working Group Report on e-Billing and Personal Energy Data Management - Report prepared for the 6th Citizens' Energy Forum – December 2013 Directive 2013/11/EU on alternative dispute resolution for consumer disputes – May 2013 Commission Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems – March 2012 Directive 2012/27/EU on energy efficiency – October 2012 and Commission Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems Directive 2011/83/EU of the European Parliament and of the Council on consumer rights – October 2011 Annex to the Impact Assessment for the Energy Efficiency Directive, SEC(2011) 779 final – June 2011 Directive 2010/31/EU on the energy performance of buildings – May 2010 Directive 2010/30/EU concerning the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products – May 2010 Directive 2009/72/EC concerning common rules for the internal market in electricity – July 2009 Directive 2009/73/EC concerning common rules for the internal market in gas – July 2009 Directive 2009/28/EC on the promotion of the use of energy from renewable sources – April 2009 Regulation (EC) No 861/2007 establishing a European Small Claims Procedure – July 2007 Directive 2005/29/EC on Unfair Commercial Practices and Commission Staff Working Document Guidance on the Implementation/Application Of Directive 2005/29/EC on Unfair Commercial Practices SEC(2009) 1666 – May 2005 Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in electricity and repealing Directive 96/92/EC - Statements made with regard to decommissioning and waste management activities 28
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Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data – October 1995 Council Directive 93/13/EEC on unfair terms in consumer contracts – April 1993 ACER Energy Regulation: A Bridge to 2025 Conclusions Paper – September 2014 CEER Position paper on well-functioning retail energy markets – October 2015 CEER Advice on Customer Data Management for Better Retail Market Functioning – March 2015 CEER-BEUC Joint Statement “A 2020 Vision for Europe’s energy customers” – November 2012 ERGEG Guidelines of Good Practice (GGP) on indicators for retail market monitoring for electricity and gas – October 2010
European Parliament Directorate General for Internal Policies, Policy Department A: Economic and Scientific Policy: How to end Energy Poverty? Scrutiny of Current EU and the Member States instruments IP/A/ITRE/2014-06 (PE 563.472) – October 2015
Insight-E: Energy poverty and vulnerable consumers in the energy sector across the EU: analysis of policies and measures May 2015 Buildings Performance Institute Europe (BPIE): Alleviating Fuel Poverty in the EU, 2014.
Eurostat Energy price statistics, May 2015 http://ec.europa.eu/eurostat/statisticsexplained/index.php/Energy_price_statistics
Accord « le Consommateur dans le marché libéralisé de l’électricité et du gaz »/ Akkoord “De consument in de vrijgemaakte elektriciteits- en gasmarkt" – Belgium, October 2013
NEON reports 72,462 energy-related disputes handled in 2014 (http://www.neonombudsman.org/2015/10/neon-71625-energy-related-disputes.html) – October 2015 NEON provisional findings on the complaints of the future (http://www.neonombudsman.org/2015/09/neon-provisional-findings-on-complaints.html) – September 2015 NEON Position Paper: “Delivering a New Deal for Energy Consumers” (http://www.neonombudsman.org/2015/01/neons-position-paper-on-energy-union.html) – July 2015 NEON conclusions on Data Management and Complaint Monitoring in the Energy Sector (http://www.neon-ombudsman.org/2015/06/neon-conclusions-on-data-managementand.html) – June 2015 NEON Independent Ombudsmen and ADR providers: building bridges in the energy market (http://www.neon-ombudsman.org/2015/03/independent-ombudsmen-and-adrproviders.html) – March 2015 NEON's Position Paper on the Energy Union (http://www.neonombudsman.org/2015/01/neons-position-paper-on-energy-union.html) – January 2015 Belgian Energy Ombudsman Avis 14.007 du 24 novembre 2014 sur le mémorandum du Service de Médiation de l’Énergie
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http://www.mediateurenergie.be/index.php?option=com_content&view=article&id=53&Ite mid=67&lang=fr Report on the right to Basic Utilities (Electricity, Water and Gas) (http://www.sindic.cat/site/unitFiles/3754/Report%20on%20the%20right%20to%20basic%2 0utilities.pdf) - December 2014 Catalan Ombudsman’s report on energy poverty in Catalonia (http://www.sindic.cat/site/unitFiles/3530/Report%20on%20energy%20poverty%20in%20Ca talonia%20def.pdf) - October 2013 French Ombudsman Annual report 2014 (http://www.energiemediateur.fr/publications/rapports_dactivite.html)
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