Regulators propose a holistic framework for assessing well-functioning retail energy markets 16 October 2015AEL Updates 2015Posted by Adv. Lorenc Gordani, PhD Sat, October 17, 2015 14:45:10
CEER publishes today its Position paper on well-functioning retail energy markets, which creates a forward-looking framework for national regulators to assess the performance of energy markets. This strategic paper aims to increase the level of sophistication in the understanding of retail markets as we work to develop a roadmap to deliver well-functioning retail energy markets to the benefit of consumers by 2025. In particular, the paper:
- defines the outcomes that a well-functioning retail market should achieve; and
- sets out common criteria for market assessments of well-functioning markets.
The paper originates from regulators’ “Bridge to 2025” proposals and our commitment to develop a roadmap and to advise the European Commission in respect of its future Retail Markets policy, as outlined in its July 2015 Communication on “Delivering a New Deal for Energy Consumers in Europe”.
CEER’s market assessment framework is based on 2 key principles (competition and innovation, and consumer involvement) which are broken down into 8 key properties (or outcomes) that we expect well-functioning markets to deliver for consumers. To measures these outcomes, we propose a set of 25 metrics to be considered collectively for each relevant market.
The CEER 2015 Customer Conference on 20 October will be an opportunity to discuss CEER’s new retail market assessment framework, where the theme of our event is “Delivering a New Deal for Energy Consumers”. In terms of next steps, CEER has committed to developing a roadmap to secure well-functioning retail markets for consumers by 2025. CEER looks forward to cooperating with the European Commission and having an open dialogue with energy stakeholders on these and related issues.