The Distributor Viewpoint to Supplier Switching Geode

1
The Distributor Viewpoint to Supplier
SwitchingGeode

• ERGEG Customer Focus Group Workshop
• October 11, 2005, Helsinki
• Pekka Salomaa

2
Geode

• is a European independent association of energy
  distribution companies
• supports liberalisation of European energy market
  and creation of an internal energy market
• stands for creating competitive conditions
  permitting market players to have fair and non
  discriminatory access to energy
• member companies have strong geographical links
  to the distribution area
• to offer best service quality to customers
• an alternative for consumers in markets with very
  few players

3
Price transparency

• More transparency is better than less
• Price lists, offers, contracts, bills, websites,
  price comparisons by third parties
• A humans ability to absorb information is
  limited
• e.g. bills cant be used for very extensive info

4
Switching procedures 1.

• Customer contacts
• new supplier (NS) is the natural party for
  customer contacts
• NS contacts distributor and NS / distributor
  contacts old supplier (termination of contract)
• Metering
• shall be a responsibility of the distributor
• outsourcing is possible
• included in the network tariff / a separate part
  of it
• a neutral and stable party, to facilitate
  switching
• AMR and hourly metering shall be developed
  rapidly
• ease of switch, grid load info, new supply
  products, real-time billing, enable increased
  price elasticity of demand and thus increased
  system reliability

5
Switching procedures 2.

• Data interchange
• customer point of use identification
• data ownership availability questions who
  shall get which info and which not
• distributor info hub
• customers supplier access to info
• incumbent supplier no individual info

6
Consumer protection

• Leave room for new products, price and contract
  structures!
• Regulation of supply prices no market!
• PSOs clear thinking is needed! What is really
  needed and by whom?

7
Which level of harmonisation?

• What is really needed to be harmonised
• Which needs exist
• customer balanced level of protection, easy and
  reliable procedures, products suitable for needs
• system cheap and simple
• market easy to switch, creating trust
• Not Creating cost through regulation
• But Finding best practices

8
Case study Finland

• An opinion poll June-August 2005
• 1,000 consumer interviews (domestic customers)
• Research interest is there a need for an
  industry project on one bill for switched
  customers (incl. data exchange processes)
• 100 eligible customers
• 11 buy from other than incumbent
• 21 been active within 24 months
• 8 switched at least once within 24 months

9
(No Transcript)
10
(No Transcript)
11
(No Transcript)