Organised with the support of EURELECTRIC member companies ERDF, Alliander and Iberdrola, the Centre on Regulation in Europe (CERRE) Retail Energy Markets Summit 2014 discussed the key issues which should be part of the next phase of evolution in the European regulatory framework governing retail markets, in line with the recently published ACER/CEER Energy Regulation: a Bridge to 2025Opening the debate, Dominique Ristori, Director-General of the Commission’s DG Energy, gave a passionate speech on the need to complete the Internal Energy Market at both wholesale and retail level to make retail customers feel the benefit of competitive markets and ensure continued European energy security. Mr Ristori recalled the need for well regulated markets underpinned by strong, independent National Regulatory Authorities that develop regulation based upon a good interaction among all energy stakeholders, including consumer representatives.
Panel 2 was devoted to demand-side flexibility and demand response. Panellists agreed as to the drivers for greater involvement of customers in retail markets, namely financial savings and empowerment as well as system benefits such as integration of renewables at the lowest cost. However, different opinions emerged as to the true role of customers in demand response markets. Whilst technology and conducive regulation will unlock this untapped potential, simplicity – one of the core principles regulators abide by across Europe – is to be preserved. How can dynamic pricing, something inherently complicated, be made palatable to domestic consumers?
Panel 3 squared the circle by focusing on the role of DSOs as enablers of the changes happening at retail level. Agreement emerged among participants on the need to give DSOs a flexible toolbox to cope with the grid challenges, including the integration of distributed resources. Although new activities create grey areas between regulated and market activities, common principles and interoperable standards should be set up. Regarding innovation, panellists disagreed on the conundrum of DSOs and innovation: some noted that not all DSOs can innovate equally and that being regulated is usually not the best basis to stimulate innovation whilst others recalled that innovation has nothing to do with size and regretted that EU projects of common interest disfavour smart grid and distribution projects. The issue of digitisation of DSO activities through data mining and analytics was also underlined. DSO panellists called for more freedom in doing their job, a more efficient tariff system and the development of new market models.