eurelectric proposals for amendments electricity directive - … · 2018. 3. 14. · eurelectric is...

European Commission’s proposal for aDirective on common rules for the internalmarket in electricityEURELECTRIC proposals for amendments

June 2017

Retail Customers CommitteeDSO Committee

Contact:Sébastien Dolige, Advisor Retail Markets & Consumer Issues

[email protected]

Dépôt légal: D/2017/12.105/33

EURELECTRIC is the voice of the electricity industry in Europe.

We speak for more than 3,500 companies in power generation, distribution, and supply.

We Stand For:

Carbon-neutral electricity by 2050

We have committed to making Europe’s electricity cleaner. To deliver, we need to make use of all low-carbon technologies: more renewables, butalso clean coal and gas, and nuclear. Efficient electric technologies in transport and buildings, combined with the development of smart grids and amajor push in energy efficiency play a key role in reducing fossil fuel consumption and making our electricity more sustainable.

Competitive electricity for our customers

We support well-functioning, distortion-free energy and carbon markets as the best way to produce electricity and reduce emissions cost-efficiently.Integrated EU-wide electricity and gas markets are also crucial to offer our customers the full benefits of liberalisation: they ensure the best use ofgeneration resources, improve security of supply, allow full EU-wide competition, and increase customer choice.

Continent-wide electricity through a coherent European approach

Europe’s energy and climate challenges can only be solved by European – or even global – policies, not incoherent national measures. Such policiesshould complement, not contradict each other: coherent and integrated approaches reduce costs. This will encourage effective investment to ensurea sustainable and reliable electricity supply for Europe’s businesses and consumers.

EURELECTRIC. Electricity for Europe.

1

Definitions

Amendment 1

Article 2 – paragraph 6

Text proposed by Commission Amendment proposal by EURELECTRIC

6. ‘active customer’ means a customer or agroup of jointly acting customers whoconsume, store or sell electricity generatedon their premises, including throughaggregators, or participate in demandresponse or energy efficiency schemesprovided that these activities do notconstitute their primary commercial orprofessional activity;

6. ‘active customer’ means a customer or agroup of jointly acting customers whoconsume, store or sell electricity generatedbehind the point of their connection to thegrid, including through aggregators, orparticipate in demand response or energyefficiency schemes provided that theseactivities do not constitute their primarycommercial or professional activity;

Justification

Clarification in the text is needed as ‘their premises’ could be interpreted as though the provisionsapply to different assets owned by the same consumer in different locations; and such aninterpretation would result in a positive discrimination.

2

Amendment 2



7. 'local energy community' means: anassociation, a cooperative, a partnership, anon-profit organisation or other legal entitywhich is effectively controlled by localshareholders or members, generally valuerather than profit-driven, involved indistributed generation and in performingactivities of a distribution system operator,supplier or aggregator at local level,including across borders;

7. 'local energy community' means: an SMEor a not-for-profit organisation, theshareholders or members of whichcooperate in the generation, distribution,storage or supply of energy at local level,including across borders, fulfilling at leastfour out of the following criteria:

(a) shareholders or members arenatural persons, local authorities,including municipalities, or SMEs;(b) at least 51% of the shareholders ormembers with voting rights of the entityare natural persons;(c) at least 51% of the shares orparticipation rights of the entity areowned by local members, i.e.representatives of local public and localprivate socio-economic interests orcitizen having a direct interest in thecommunity activity and its impacts;(d) at least 51% of the seats in the boardof directors or managing bodies of theentity are reserved to local members,i.e. representatives of local public andlocal private socioeconomic interests orcitizens having a direct interest in thecommunity activity and its impacts;(e) the community has not installedmore than 5 MW of capacity forelectricity, heating and cooling andtransport as a yearly average in theprevious 5 year.

Justification

To provide clarity on ownership structures and size of such an enterprise, we suggest reference ismade to an existing definition in the Renewable Energy Directive which provides guidelines and aclear framework for both community groups and other market stakeholders.

3

Amendment 3



‘dynamic electricity price contract’ means anelectricity supply contract between a supplierand a final customer that reflects the price atthe spot market or at the day ahead marketat intervals at least equal to the marketsettlement frequency

‘dynamic electricity price contract’ means anelectricity supply contract between a supplierand a final customer that reflects wholesaleprice volatility

Justification

Dynamic pricing refers to retail electricity prices that pass through at least part of the wholesaleprice volatility to final end users. This can be achieved not only through real time pricing but alsowith advanced forms of time-of-use and critical peak pricing. Therefore, the definition of dynamicpricing should be extended.

Amendment 4

Article 2 – paragraph 12 (new)


“Billing” means a written statement of themoney owed for goods or services andcontaining the minimum informationdefined in Annex II.1

Justification

It is crucial to make a clear distinction between billing and billing information to simplify thecurrent regulatory framework and to increase consumer satisfaction with bills.

- Billing should only contain key information (e.g. consumption, price to pay, etc.) asdefined in Annex II par1;

- Billing information should be distinct from the bill. It should contain separate additionalinformation about consumers’ consumption and rights, as defined in Annex II.2 and II.5and could be tailored depending on consumer preferences

4

Amendment 5



“Billing information” means separateadditional information about consumers’consumption and rights, as defined in AnnexII.2 and II.5, and shall not constitute arequest for payment.

Justification

It is crucial to make a clearer distinction between billing and billing information to simplify thecurrent regulatory framework and to increase consumer satisfaction with bills.


- Billing information should be distinct from the bill. It should contain separate additionalinformation about consumers’ consumption and rights, as defined in Annex II.2 and II.5and could be tailored depending on consumer preferences.

Amendment 6



“Energy service provider” means a natural orlegal person who delivers energy services ina final customer’s facility or premises.

Justification

“Service provider” is mentioned several times in the Directive and therefore we feel it is importantto define the term.

5

Amendment 7



‘near-real time’ means, in the context ofsmart metering, the time, usually down toseconds, that elapses between datarecording and their automated processingand transmission for use or informationpurposes;

Delete

Justification

The specification of the resolution “down to second “ is considered excessive.

6

End-user energy prices

Amendment 8



(3) By way of derogation from paragraphs 1and 2, Member States who apply publicinterventions in price setting for the supply ofelectricity for energy poor or vulnerablehousehold customers at the date of entryinto force of this Directive may continue toapply such public interventions during fiveyears from the entry into force of thisDirective. Such public interventions shallpursue a general economic interest, beclearly defined, transparent, non-discriminatory, verifiable and guaranteeequal access for Union electricity companiesto customers. The interventions shall not gobeyond what is necessary to achieve thegeneral economic interest which they pursue,be limited in time and proportionate asregards their beneficiaries.

(3) By way of derogation from paragraphs 1and 2, Member States who apply publicinterventions in price setting for the supply ofelectricity for energy poor or vulnerablehousehold customers at the date of entryinto force of this Directive may continue toapply such public interventions during fiveyears from the entry into force of thisDirective, provided they are financedthrough the public budget. Such publicinterventions shall pursue a generaleconomic interest, be clearly defined,transparent, non-discriminatory, verifiableand guarantee equal access for Unionelectricity companies to customers. Theinterventions shall not go beyond what isnecessary to achieve the general economicinterest which they pursue, be limited in timeand proportionate as regards theirbeneficiaries.

Justification

In most cases where customers have energy debts, they are likely to struggle paying for otheressential services too (e.g. housing, food, etc.). Wider social policy is the best mechanism to helpconsumers tackle the root causes of debt, including energy debts.

Support granted to people suffering from poverty should come from general income of the state,i.e. through general taxation. Considering the progressive nature of taxation, this would allow fora fair burden-sharing without causing those on lower incomes to bear a disproportionally higherburden (meaning when a contribution is levied on the bill, all customers pay the same).

7

Basic contractual rights

Amendment 9



1. 4. Member States shall ensure thatall customers are entitled to have theirelectricity provided by a supplier, subject tothe supplier’s agreement, regardless of theMember State in which the supplier isregistered, as long as the supplier followsthe applicable trading rules. In this regard,Member States shall take all measuresnecessary to ensure that administrativeprocedures do not discriminate againstsupply undertakings already registered inanother Member State.

1. 4. Member States shall ensure thatall customers are entitled to have theirelectricity provided by a supplier, subject tothe supplier’s agreement, regardless of theMember State in which the supplier isregistered, as long as the supplier followsthe applicable trading and balancing rules.In this regard, Member States shall take allmeasures necessary to ensure thatadministrative procedures do notdiscriminate against supply undertakingsalready registered in another Member State.

Justification

Deleting the reference to compliance with relevant balancing rules from the existing 3rd Directivewould mean that suppliers registered in one Member State and supplying electricity in anotherMember State would de facto be freed from balancing responsibility. This represents a clearpositive discrimination of foreign towards domestic suppliers and would also mean that othermarket parties have to bear the burden of imbalances caused by foreign suppliers. It is not alignedwith the principles of non-discrimination and level-playing field.

8

Amendment 10

Article 10 – paragraph 1b


Without prejudice to Union rules onconsumer protection, in particular Directive2011/83/EU of the European Parliament andof the Council and Council Directive93/13/EEC, Member States shall ensure thatcustomers:

(b) are given adequate notice of any intentionto modify contractual conditions and areinformed about their right to dissolve thecontract when the notice is given. Suppliersshall notify their customers directly of anyadjustment in the supply price as well as ofthe reasons and preconditions for theadjustment and its scope, at an appropriatetime no later than one normal billing periodbefore the adjustment comes into effect in atransparent and comprehensible manner.Member States shall ensure that customersare free to withdraw from contracts if theydo not accept the new contractual conditionsor adjustments in the supply price notified tothem by their electricity supplier;


(b) are given adequate notice of any intentionto modify contractual conditions and areinformed about their right to dissolve thecontract when the notice is given. Serviceproviders shall notify their customers directlyof any adjustment in the supply price as wellas of the reasons and preconditions for theadjustment and its scope, except if suchadjustment was agreed upon by thecustomer when signing the contract, at anappropriate time before the adjustmentcomes into effect in a transparent andcomprehensible manner. Member Statesshall ensure that customers are free towithdraw from contracts if they do notaccept the new contractual conditions oradjustments in the supply price notified tothem by their electricity supplier;

Justification

Information obligation towards consumers should be equally applicable to any service provider, bethey supplier, aggregator, ESCO, etc. This is key in order to ensure a high degree of protection tocustomers and a level playing field among market players.

The right to dissolve the contract should not apply when the price change is the result of a formulawhich was agreed upon by the consumer when signing the contract, e.g. dynamic pricing offer.

Last but not least, the notification should not be linked to the billing frequency. Invoice frequencyvaries between and within countries, depending on national regulation and consumer preferences.Beside, a price change could well occur in the middle of a billing period. What is key is that thenotification is timely enough to allow consumers to switch if they wish to and that suppliers arefree to decide how to communicate the notification (mail, app, bill…).

9

Amendment 11

Article 10 – paragraph 1i



(i) are given adequate information onalternatives to disconnection sufficiently inadvance before the planned disconnection.These alternatives may refer to sources ofsupport to avoid disconnection, alternativepayment plans, debt management advice ordisconnection moratorium and should notconstitute an extra cost to customers


(i) are (i.e. when they are householdcustomers) given adequate information onalternatives to disconnection sufficiently inadvance before the planned disconnection.These alternatives may refer to sources ofsupport to avoid disconnection, alternativepayment plans, debt management advice ordisconnection moratorium.

Justification

Suppliers should have the right to charge the costs they incur for alternative payment plans,otherwise all consumers will pay for the costs caused by those who are not paying their bills,including those with low incomes and yet a good payment record.

10

Dynamic pricing

Amendment 12



Member States shall ensure that everyfinal customer is entitled, on request, to adynamic electricity price contract by hissupplier.

Member States shall ensure that there areno barriers for suppliers to offer a dynamicelectricity price contract to finalcustomers.

Justification

Member States should remove any barriers that would prevent suppliers offering dynamicelectricity prices. However imposing an obligation on some or all retail offerings contradictsvarious parts of the proposed directive, and will be detrimental to competition and innovation, asit could create entry barriers for small suppliers. Coherence with the broader framework thatadvocates for complete market liberalisation should be ensured and freedom of contractrespected.

11

Switching

Amendment 13



(3) By way of derogation from paragraph 2,Member States may choose to permitsuppliers to charge contract termination feesto customers willingly terminating fixed termsupply contracts before their maturity. Suchfees may only be charged if customersreceive a demonstrable advantage fromthese contracts. In addition, such fees shallnot exceed the direct economic loss to thesupplier of the customer terminating thecontract, including the cost of any bundledinvestments or services already provided tothe customer as part of the contract

(3) By way of derogation from paragraph 2,Member States may choose to permitsuppliers to charge contract termination feesto customers willingly terminating fixed termsupply contracts before their maturity. Suchfees may only be charged if they are clearlycommunicated to customers upfront and aspart of their contract. In addition, such feesshall not exceed the direct economic loss tothe supplier of the customer terminating thecontract, including the cost of any bundledinvestments or services already provided tothe customer as part of the contract

Justification

Proving that a consumer receives a “demonstrable advantage” from a given fixed term supplycontract will be very complex in practice. Indeed, suppliers do not know the future cost ofelectricity nor do they know the future consumption of customers. What is key is that, where feesmay apply, they must be proportionate to the costs incurred by the current supplier, be clearlycommunicated to customers up-front, and be controlled ex-ante and ex-post by the nationalauthorities.

12

Demand Response aggregation

Amendment 14



Member States shall ensure that finalcustomers are entitled to receive all relevantdemand response data or data on suppliedand sold electricity at least once per year.

Member States shall ensure that finalcustomers are entitled to receive all relevantdemand response data or data on suppliedand sold electricity on a regular basis.

Justification

As the action of aggregators will have an impact on the customers’ bill, customers should receivethis information as soon as possible after receipt of their bill. In order to encourage moreparticipation of consumers in the market, this information should be sent on a regular basis.

13

Retail Pricing

Amendment 15

New article


Member States shall ensure that electricityprices do not hamper cost-efficientdecarbonisation and may enable thatnetwork charges and policy support costsevolve along the following principles inorder to enhance demand side flexibility,while improving the system’s efficiency:

a) A set of network tariff structures withdifferent shares of standing charges(€/client) capacity-based (kW) and energy-based (kWh) components may be defined bythe NRA based on consumers contracted andabsorbed capacity and consumption leveland patterns.

b) These regulated charges may be conveyedby retailers to their customers with flat ormore time-differentiated options

c) Policy costs and levies may be recoveredthrough other means than the electricityprice

Justification

The electricity bill is increasingly used to recover the cost of energy and climate policies, includingthe financing of decarbonisation. Taxes and levies have been the main driver for recent priceincreases. In this context, the way regulated costs (network charges and levies) are charged toconsumers is problematic. Policy support costs and network costs are paid according to theconsumption. However these costs are largely fixed. They need to be paid even if the consumptiondecreases. With technological developments like distributed generation, storage, or electro-mobility, some customers are now consuming less electricity from the grid and therebycontributing less to system costs through tariff payments. Those costs then have to be chargedacross a smaller consumer base – those consumers not willing or not able to invest in suchtechnologies, including many low income consumers – meaning an effective increase to their tariffpayments.

To reverse this trend, regulated costs should be charged in an efficient way, progressivelyremoving cross-subsidisation. Determining a detailed charging structure for both network tariffsand policy support costs that may still remain in the bill is a matter of subsidiarity. However, EUlegislation could provide high level principles for effective retail pricing structures and givesuppliers some flexibility to convey these regulated charges to consumers.

14

Active Customers

Amendment 16



Member States shall ensure that finalcustomers:

(b) are subject to cost reflective, transparentand non-discriminatory network charges,accounting separately for the electricity fedinto the grid and the electricity consumedfrom the grid, in line with Article 59.

Member States shall ensure that finalcustomers:

(b) are subject to cost reflective, transparentand non-discriminatory network charges.,accounting separately for the electricity fedinto the grid and the electricity consumedfrom the grid, in line with Article 59.However, Member States should not allowthe use of net-metering schemes underwhich the excess electricity injected into thegrid can be used at a later time to offsetconsumption during times when onsitegeneration is insufficient.

Justification

Amendment of the text is needed to ensure that net-metering for any period longer than thesettlement time that net-metering is excluded.

15

Local Energy Communities

Amendment 17

Article 16 – paragraph 1c


Member States shall ensure that local energycommunities:

(c) benefit from a non-discriminatorytreatment with regard to their activities,rights and obligations as final customers,generators, distribution systemoperators, or aggregators;

Member States shall ensure that local energycommunities:

(c) benefit from a non-discriminatorytreatment with regard to their activities,rights and obligations as final customers,generators, distribution systemoperators, suppliers, or aggregators;

Justification

All potential undertakings of a local energy community should be covered.

Amendment 18

Article 16 – paragraph 2b


Member States shall provide an enablingregulatory framework that ensures that:

(b) shareholders, or members of a localenergy community shall not lose theirrights and obligations as householdcustomers or active customers;


(b) system users, shareholders, or membersof a local energy community shall notlose their rights and obligations ashousehold customers or activecustomers;

Justification

The same rights should apply to consumers connected via a local energy community-operatednetwork, regardless of whether they are members and non-members of such LEC.

16

Amendment 19

Article 16 – paragraph 2e



(e) provisions of Chapter IV apply to localenergy communities that performactivities of a distribution systemoperator;


(e) Article 6 and the provisions of ChapterIV apply to local energy communities thatperform activities of a distribution systemoperator;

Justification

A key element of this Directive has traditionally been the third-party access to the networks, whichmust be based on tariffs defined and approved by the regulator and published prior to their entryinto force – see Article 6 and Article 59.

17

Demand Response

Amendment 20



(d) aggregators shall not be required to paycompensation to suppliers or generators;

(d) Aggregators shall pay suppliers andgenerators the market value of the energytransacted as a result of a demand responseaction.

Justification

In order to be sold by the third-party aggregator, the electricity related to the demand responseaction has to be sourced by the supplier of the activated customer. Therefore, this electricity hasto be paid for. The re-routing of electricity through a demand response action and its subsequentsale on the electricity markets by aggregators should not be confused with a simple decrease ofelectricity consumption.

Amendment 21



4. In order to ensure that balancing costs andbenefits induced by aggregators are fairlyassigned to market participants, MemberStates may exceptionally allowcompensation payments betweenaggregators and balancing responsibleparties. Such compensation payments mustbe limited to situations where one marketparticipant induces imbalances to anothermarket participant resulting in a financialcost. Such exceptional compensationpayments shall be subject to approval by thenational regulatory authorities andmonitored by the Agency.

In order to ensure that balancing costs andbenefits induced by aggregators are fairlyassigned to market participants, MemberStates should allow payments betweenaggregators and balancing responsibleparties. Such payments must be limited tosituations where one market participantinduces imbalances to another marketparticipant resulting in a financial cost.

Such payments shall be subject to approvalby the national regulatory authorities andmonitored by the Agency.

Justification

The current market model is based on the central role of Balance Responsible Parties that arefinancially responsible for keeping their own position balanced over a given timeframe (theimbalance settlement period). The Internal Market Regulation (art. 4.1) clearly states that allmarket participants must take financial responsibility for the imbalances they cause in the system.Aggregators should therefore always be balance responsible, on a level playing field with othermarket participants.

18

Billing and billing information

Amendment 22



(1) Member States shall ensure that bills fulfilthe minimum requirements for billing andbilling information as set out in Annex II. Theinformation contained in bills shall be correct,clear, concise and presented in a mannerthat facilitates comparison by consumers.

(1) Member States shall ensure that billingand billing information fulfil the minimumrequirements set out in Annex II. Theinformation contained in bills shall be correct,clear, and concise

Justification

Bills are not meant to facilitate comparison by consumers, other tools such as Comparison toolsare meant for this. However if bills contain minimum requirements in a clear and concise way,consumers will easily find the information they need to compare their existing tariff with otheroffers available on the market.

Amendment 23



(4) Billing shall take place on the basis ofactual consumption at least once a year.Billing information shall be made available atleast once every three months, upon requestor where the final customers have opted toreceive electronic billing or else twice a year

(4) Billing shall take place on the basis ofactual consumption at least once a year.Information on actual consumption shall bemade available at least once every threemonths, upon request or where the finalcustomers have opted to receive electronicbilling or else twice a year

Justification

The proposed change only aims at clarifying the current provision. The minimum information to becontained in the bill are defined in Annex II par 1. Billing information on the other hand aredefined in Annex II par 2. Referring to “information on actual consumption” instead of “billinginformation” in this article would avoid any confusion about which information has to be providedwhen.

19

Amendment 24



(4) Where final customers have meters thatallow remote reading by the operator,accurate billing information based on actualconsumption shall be provided at least once amonth.

(4) Where final customers have meters thatallow remote reading by the operator,accurate information on actual consumptionshall be provided at least once a month.

Justification

The proposed change only aims at clarifying the current provision. The minimum information to becontained in the bill are defined in Annex II par 1. Billing information on the other hand aredefined in Annex II par 2.

Amendment 25



(7) Member States may lay down that, atthe request of the final customers, theinformation contained in these bills shall notbe considered to constitute a request forpayment. In such cases, Member States shallensure that suppliers offer flexiblearrangements for payments.

Delete

Justification

This provision is very confusing; it contradicts Article 18.3 and the broader goal of energyefficiency. A bill is a request for payment.

20

Smart metering

Amendment 26

Article20 (2) Smart meter functionalities


Where smart metering is positivelyassessed as a result of cost-benefitassessment referred to in Article 19(2),or systematically rolled out, MemberStates shall implement smart meteringsystems in accordance with Europeanstandards, the provisions in Annex III,and in line with the following principles:

(a) the metering systems accuratelymeasure actual electricityconsumption and provide to finalcustomers information on actualtime of use. That information shallbe made easily available andvisualised to final customers at noadditional cost and at near-realtime in order to support automatedenergy efficiency programmes,demand response and otherservices;

(b) the security of the smart meteringsystems and data communication isensured in compliance with relevantEuropean Union security legislationhaving due regard of the bestavailable techniques for ensuringthe highest level of cybersecurityprotection;

…

(g) smart metering systems shallenable final customers to bemetered and settled at the sametime resolution as the imbalanceperiod in the national market.

Where smart metering is positivelyassessed as a result of cost-benefitassessment referred to in Article 19(2),or systematically rolled out, MemberStates shall implement smart meteringsystems in accordance with Europeanstandards, the provisions in Annex III,and in line with the following principles:

(a) the metering systems accuratelymeasure actual electricityconsumption and provide to finalcustomers information on actualtime of use. That information shallbe made easily available to finalcustomers in order to supportautomated energy efficiencyprogrammes, demand responseand other services;

(b) the security of the smart meteringsystems and data communicationis ensured in compliance withrelevant European Union securitylegislation having due regard ofthe best available techniques forensuring the highest level ofcybersecurity protection takinginto consideration the customersinterest for a constant level ofprotection and the costs of theupgrades involved;

…

(g) smart metering systems mayenable final customers to bemetered and settled at the sametime resolution as the imbalanceperiod in the national market.

21

Justification

a) Deletion of specification “near real time” as shortening the time period to get data (rawand validated ) cannot be provided without any additional costs and will inevitably makethe cost benefit analysis negative. Furthermore some Member States already began thesmart meter roll out, technical requirements should not cause a readjustment of alreadydeveloped technology.

Also mandating this functionality as mandatory will negatively impact the development ofenergy services (at no additional costs).

b) It will be almost technically impossible and expensive to maintain the security of thesystem at the highest level of cyber security protection throughout the entire system lifetime: this would mean in practice a continuous update of the software.

c) g)addition proposed to avoid inefficient cost and related communication upgrades whichare inefficient for certain type of customers

Amendment 27

Article 21 Entitlement to a smart meter


2. In the context of a customer request for asmart meter pursuant to paragraph 1,Member States or, where a Member Statehas so provided, the designated competentauthorities shall:

(a) ensure that the offer to the finalcustomer requesting the installation of asmart meter explicitly states and clearlydescribes:

– the functions and interoperability that canbe supported by the smart meter and theservices that are feasible as well as thebenefits that can be realistically attained byhaving that smart meter at that moment intime;

– any associated costs to be borne by thefinal customer;

(b) ensure that it is installed within areasonable time and no later than threemonths after the customer's request;

….

2. In the context of a customer request for asmart meter pursuant to paragraph 1,Member States or, where a Member Statehas so provided, the designated competentauthorities shall:

(a) ensure that the offer to the finalcustomer requesting the installation of asmart meter explicitly states and clearlydescribes:

– the functions and interoperability that canbe supported by the smart meter and theservices that are feasible as well as thebenefits that can be realistically attained byhaving that smart meter at that moment intime;

– any associated costs to be borne by thefinal customer;

(b) ensure that it is installed within areasonable time inside the roll-out planningafter the customer's request;

….

Justification

Deletion of a strict timeline “no later than three months” as not feasible in cases where smartmeter deployment is selective and on request.

22

Data management and data format

Amendment 28



(2) Member States shall organise themanagement of data in order to ensureefficient data access and exchange.Independently of the data managementmodel applied in each Member State, theparty or parties responsible for datamanagement shall provide to any eligibleparty with the explicit consent of the finalcustomer, access to the data of the finalcustomer. Eligible parties should have at theirdisposal in a non-discriminatory manner andsimultaneously the requested data. Access todata shall be easy, while relevant proceduresshall be made publicly available.

(2) Member States shall organise themanagement of data in order to ensuresecure, transparent, neutral, non-discriminatory and cost-efficient data accessand exchange. Independently of the datamanagement model applied in each MemberState, the party or parties responsible fordata management shall, in accordance withRegulation (EU) 2016/679, provide to anyeligible party with the explicit consent of thefinal customer, access to the data of the finalcustomer. Eligible parties should have at theirdisposal in a non-discriminatory manner andsimultaneously the requested data. Access todata shall be easy, while relevant proceduresshall be made publicly available.

Justification

Whilst we agree that there is no ‘one size fits all’ data management model applicable in allEuropean countries, it is however fundamental to set common principles at EU level to ensure thatdata access and exchange is done in a secure, transparent, neutral, non-discriminatory, and cost-efficient way.

DSOs and suppliers should have unrestricted access to customers’ data needed to fulfil their legaland regulatory liabilities (security of supply, billing, switching etc.), as per their contractualobligations. For any other additional service, access to metering and consumption data should bepossible only after the explicit consent of the customer. The General Data Protection Regulation(EU 2016/679) introduces very precise rules and obligations about consumer consent and we thinkthe Electricity Directive should be aligned.

23

Amendment 29



(1) Member States shall define a commondata format and a transparent procedure foreligible parties to have access to the datalisted under paragraph 1 of Article 23, inorder to promote competition in the retailmarket and avoid excessive administrativecosts for the eligible parties.

(1) Member States shall define a commonnational data format and a transparentprocedure for eligible parties to have accessto the data listed under paragraph 1 of Article23, in order to promote competition in theretail market and avoid excessiveadministrative costs for the eligible parties.

Justification

Data format should be primarily harmonised at national level. It is unclear what « common » dataformat alone means.

Amendment 30



(2) The Commission, by means ofimplementing acts adopted in accordancewith the advisory procedure referred to inArticle 68, shall determine a commonEuropean data format and non-discriminatory and transparent proceduresfor accessing the data, listed underparagraph 1 of Article 23, that will replacenational data format and procedure adoptedby Member States in accordance withparagraph 1. Member States shall ensurethat market participants apply a commonEuropean data format.

(2) The Commission may determine a set ofprinciples for a common European dataframework to support non-discriminatoryand transparent access to the data, listedunder paragraph 1 of Article 23. Suchprinciples should be taken into account byMember States when developing theirnational data format and procedure inaccordance with paragraph 1.

Justification

It is worth recalling that several Member States have just implemented a national data hub (e.g.Denmark, Italy) or are about to do it (e.g. Finland, Sweden, Norway, Belgium, France, etc.).Introducing a new data format would require market actors and DSOs to upgrade all core systems(such as billing) thus creating high costs. However we do think there is merit in establishing a setof principles at EU level to guide those Member States which have not yet define their nationaldata format, thus facilitating convergence of data format and procedures.

24

Tasks of DSOs

Amendment 31



The distribution system operators shall beresponsible for ensuring the long-termability of the system to meet reasonabledemands for the distribution of electricity,for operating, maintaining and developingunder economic conditions a secure,reliable and efficient electricity distributionsystem in its area with due regard for theenvironment and energy efficiency.

…

The distribution system operators shall beresponsible for:

a) ensuring the long-term ability ofthe system to meet reasonabledemands for the distribution ofelectricity, for operating,maintaining and developing undereconomic conditions a secure,reliable and efficient electricitydistribution system in its area withdue regard for the environmentand energy efficiency.

b) managing electricity flows on thesystem, taking into accountexchanges with otherinterconnected systems. To thatend, the distribution systemoperator shall be responsible forensuring a secure, reliable andefficient electricity system and, inthat context, for ensuring theavailability of all necessaryancillary services, including thoseprovided by demand response andenergy storage, insofar as suchavailability is independent fromany other distribution system withwhich its system isinterconnected;…

Justification

This specific sentence for the secure, reliable and efficient operation of its distribution systemwould strengthen and underline the role of DSOs as active system managers.

25

Amendment 32



6. Where a distribution system operator isresponsible for balancing the distributionsystem, rules adopted by it for thatpurpose shall be objective, transparent andnon-discriminatory, including rules for thecharging of system users of their networksfor energy imbalance. Terms andconditions, including rules and tariffs, forthe provision of such services bydistribution system operators shall beestablished in accordance with Article 59(6) in a non-discriminatory and cost-reflective way and shall be published.

Justification

We would like to stress the crucial role of DSOs for system stability as well as market facilitation inthe ongoing energy transition. Balancing the local grid becomes a focal point creating furthercomplexity and affecting the overall coordination of the distribution system, which might impactoperation, quality and cost of the service.

26

Tasks of DSOs in flexibility

Amendment 33

Article 32


1. Member States shall provide thenecessary regulatory framework to allowand incentivise distribution systemoperators to procure services in order toimprove efficiencies in the operation anddevelopment of the distribution system,including local congestion management. Inparticular, regulatory frameworks shallenable distribution system operators toprocure services from resources such asdistributed generation, demand responseor storage and consider energy efficiencymeasures, which may supplant the need toupgrade or replace electricity capacity andwhich support the efficient and secureoperation of the distribution system.Distribution system operators shall procurethese services according to transparent,non-discriminatory and market basedprocedures.

[…]

2. The development of a distribution systemshall be based on a transparent networkdevelopment plan that distribution systemoperators shall submit every two years tothe regulatory authority. The networkdevelopment plan shall contain the plannedinvestments for the next five to ten years,with particular emphasis on the maindistribution infrastructure which is requiredin order to connect new generationcapacity and new loads including re-charging points for electric vehicles. Thenetwork development plan shall alsodemonstrate the use of demand response,energy efficiency, energy storage facilitiesor other resources that distribution systemoperator is using as an alternative to systemexpansion.

The regulatory authority shall consult all

1. Member States shall provide thenecessary regulatory framework to allowand incentivise distribution systemoperators to procure and use services inorder to improve efficiencies in theoperation and development of thedistribution system, including localcongestion management. In particular,regulatory frameworks shall enabledistribution system operators to procureand use services from resources such asdistributed generation, demand responseor storage and consider energy efficiencymeasures, which may supplant the need toupgrade or replace electricity capacity andwhich support the efficient and secureoperation of the distribution system.Distribution system operators shall procurethese services according to transparent,non-discriminatory and market basedprocedures.

[…]

2. The development of a distribution systemshall be based on a transparent networkdevelopment plan that distribution systemoperators shall submit to the regulatoryauthority. The network development planshall contain the planned investments forthe next five to ten years, with particularemphasis on the main distributioninfrastructure which is required in order toconnect new generation capacity and newloads including re-charging points forelectric vehicles. The network developmentplan shall also demonstrate the use ofdemand response, energy efficiency, energystorage facilities or other resources thatdistribution system operator is using as analternative to system expansion.

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current or potential system users on thenetwork development plan. The regulatoryauthority shall publish the result of theconsultation process on the proposedinvestments.[…]

Delete

Justification

It is up to Members States to decide on the review cycle of the network development planconsidering the situation of the already deployed distribution network infrastructure.

It is inappropriate to define a harmonised consultation process for DSOs’ development plan at EUlevel given the large number of national specificities. The consultation should be decided byMember States and not be mandatory.

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Electro-mobility

Amendment 34



Member States shall perform at regularintervals or at least every five years a publicconsultation in order to re-assess thepotential interest of market parties to own,develop, operate or manage rechargingpoints for electric vehicles. In case thepublic consultation indicates that thirdparties are able to own, develop, operate ormanage such points, Member States shallensure that distribution system operators'activities in this regard are phased-out.

Member States shall perform at regularintervals or at least every five years a publicconsultation in order to re-assess thepotential interest of market parties to own,develop, operate or manage rechargingpoints for electric vehicles. In case thepublic consultation indicates that thirdparties are able to own, develop, operate ormanage such points, Member States shallensure that distribution system operators'activities in this regard are phased-out,assets are transferred at market value, anddistribution system operators recovereligible costs incurred.

Distribution System Operators are entitledto own, develop, operate or manage theirown recharging points in their facilities fortheir exclusively operational use.

Justification

It should be guaranteed that DSOs can recover the costs incurred, also and notably if the activityof the DSO in this field is phased out.

Any discrepancies between the costs sustained by the DSO and the market value of assets at themoment of sale may be recovered through the grid tariffs.

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Storage

Amendment 35

Article 36


1. Distribution system operators shall notbe allowed to own, develop, manage oroperate energy storage facilities.

2. By way of derogation from paragraph 1,Member States may allow distributionsystem operators to own, develop, manageor operate storage facilities only if thefollowing conditions are fulfilled:

(a) other parties, following an open andtransparent tendering procedure, have notexpressed their interest to own, develop,manage or operate storage facilities;

(b) such facilities are necessary for thedistribution system operators to fulfil itsobligations under this regulation for theefficient, reliable and secure operation ofthe distribution system;

And

(c) the regulatory authority has assessedthe necessity of such derogation takinginto account the conditions under points(a) and (b) of this paragraph and hasgranted its approval.

3. Articles 35 and Article 56 shall apply todistribution system operators engaged inownership, development, operation ormanagement of energy storage facilities.

4. Regulatory authorities shall perform atregular intervals or at least every five yearsa public consultation in order to re-assessthe potential interest of market parties toinvest, develop, operate or manage energystorage facilities. In case the publicconsultation indicates that third parties areable to own, develop, operate or managesuch facilities, Member States shall ensurethat distribution system operators'activities in this regard are phased-out

1. Energy storage facilities shall be owned,developed, managed or operated bymarkets participants.

2. Distribution system operators may beallowed to own, develop, manage oroperate storage facilities if such facilitiesare necessary for the distribution systemoperator to fulfil its obligations under thisregulation for the efficient, reliable andsecure operation of the distribution systemonly if the following conditions are fulfilled:

(a) other parties, following an open andtransparent tendering procedure (underNRA supervision), have not expressed theirinterest to own, develop, manage oroperate cost-effectively storage facilities orfor alternatives flexibility services;

Or;

(b) the NRA has assessed that there is nonecessity to apply the condition underpoint (a) of this paragraph and has grantedits approval.

3. Articles 35 and Article 56 shall apply todistribution system operators engaged inthe ownership, development, operation ormanagement of energy storage facilities.

4. Regulatory authorities shall perform atregular intervals or at least every five yearsa public consultation in order to re-assessthe potential interest of market parties toinvest, develop, operate or manage energystorage facilities. In case the publicconsultation indicates that third parties areable to own, develop, operate or managesuch facilities, Member States shall ensurethat distribution system operators'activities in this regard are phased-out withcompensation on fair and reasonableterms.

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Justification

Storage is a key part of the new active DSO’s ‘toolkit’ which can be used to assist DSOs to operateand plan their networks more ‘flexibly’. A tendering procedure is to assess whether DSOs shouldbe allowed to own, develop, manage or operate energy storage facilities because in principleenergy storage facilities shall be owned, developed, managed or operated by marketsparticipants. Nevertheless a mandatory tendering procedure could be both costly and timeconsuming and not appropriate for every situation.

It is a simple adjustment to the normal course of the DSOs business in cooperation with the NRAand does not require a tender to be undertaken by the NRAs, nor does it require Member States toprovide derogation from EU law.

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Tasks of TSOs

Amendment 36



(c) reflective of the need for all productsand services for the system.

Justification

TSOs need to highlight requirements for their systems in advance and procure their full demand inorder for commercial market participants to invest in assets to deliver these products and services.

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Independence of TSOs

Amendment 37



The vertically integrated undertaking and itssubsidiaries undertaking performingfunctions of generation or supply shall nothave any direct or indirect shareholding inthe transmission system operator. Thetransmission system operator shall neitherhave any direct or indirect shareholding inany subsidiary of the vertically integratedundertaking performing functions ofgeneration or supply, nor receive dividendsor any other financial benefit from thatsubsidiary.

The vertically integrated undertaking and itssubsidiaries of the vertically integratedundertaking performing functions ofgeneration or supply shall not have anydirect or indirect shareholding in thetransmission system operator. Thetransmission system operator shall neitherhave any direct or indirect shareholding inany subsidiary of the vertically integratedundertaking performing functions ofgeneration or supply, nor receive dividendsor any other financial benefit from thatsubsidiary.

Justification

The proposed change can also be interpreted in a way that extends the ban on the ownership inthe ITO to vertically integrated undertakings.

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Billing and billing information

Amendment 38

Annex II – paragraph 2 (new)


Where appropriate, the followinginformation shall be prominently displayedto final customers in or with their bills andperiodical settlement bills:

(a) current actual prices and actualconsumption of energy;

(b) comparisons of the customers' currentenergy consumption with consumption forthe same period in the previous year ingraphic form;

(c) contact information for consumerorganisations, energy agencies or similarbodies, including website addresses, fromwhich information may be obtained onavailable energy efficiency improvementmeasures, comparative end-user profiles andobjective technical specifications for energy-using equipment.

In addition, comparisons with an averagenormalised or benchmarked customer in thesame user category shall be made availableto final customers in, with or signposted towithin, their bills and periodical settlementbills.

(2) Billing information

Where appropriate, the following billinginformation shall be made available to finalcustomers:

(a) current actual prices and actualconsumption of energy;

(b) comparisons of the customers' currentenergy consumption with consumption forthe same period in the previous year ingraphic form;

(c) contact information for consumerorganisations, energy agencies or similarbodies, including website addresses, fromwhich information may be obtained onavailable energy efficiency improvementmeasures, comparative end-user profiles andobjective technical specifications for energy-using equipment.

In addition, wherever possible and useful,comparisons with an average normalised orbenchmarked customer in the same usercategory shall be made available to finalcustomers.

Justification

It is crucial to make a clearer distinction between billing and billing information to simplify thecurrent regulatory framework and to increase consumer satisfaction with bills.


- Billing information should be distinct from the bill. It should contain separate additionalinformation about consumers’ consumption and rights, as defined in Annex II.2 and II.5.

Bills are not intended to facilitate comparison by consumers, other tools such as Comparison toolsare meant for this. However if bills contain minimum requirements in a clear and concise way,consumers will easily find the information they need to compare their existing tariff with otheroffers available on the market.

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Amendment 39

Annex II – paragraph 5


4. Disclosure of energy sources

Suppliers shall specify in bills:

(a) the contribution of each energy source tothe overall fuel mix of the supplier (atnational level i.e. in the Member Statewhere the supply contract has beenconcluded, as well as at the level of thesupply undertaking if the supplier is active inseveral Member States) over the precedingyear in a comprehensible and clearlycomparable manner;

(b) the contribution of each energy source tothe electricity purchased by the customer inaccordance with the supply contract (productlevel disclosure);

(c) as a minimum the reference to existingreference sources, such as web pages, whereinformation on the environmental impact, interms of at least CO2 emissions and theradioactive waste resulting from theelectricity produced by the overall fuel mix ofthe supplier over the preceding year ispublicly available;

5. Disclosure of energy sources

Suppliers shall specify in billing information:

(a) the contribution of each energy source tothe overall fuel mix of the supplier over thepreceding year in a comprehensible andclearly comparable manner; and/or

(b) the contribution of each energy source tothe electricity purchased by the customer inaccordance with the supply contract (productlevel disclosure);

(c) as a minimum the reference to existingreference sources, such as web pages, whereinformation on the environmental impact, interms of at least CO2 emissions and theradioactive waste resulting from theelectricity produced by the overall fuel mix ofthe supplier over the preceding year ispublicly available;

Justification

It would be much clearer for consumers to receive information about one mix only. This should bethe product mix and/or the supplier mix depending on national circumstances. In addition, wethink such information should primarily be communicated as billing information and not throughthe bill.

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