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EU Energy Markets: Consumers Still in the Dark and Cold
added: 2008-10-27

Choice between different suppliers and energy from different sources, better services... Just over a year after energy liberalisation1, are European energy markets really working better for consumers? BEUC decided to investigate.

We publish the results of an exclusive survey carried out among 27 of our members across the EU.

Unfortunately, there is more bad news than good. Urgent and major improvements are needed to address: lack of choice between suppliers; difficulties accessing information to switch easily; complicated and unclear bills; different prices for different payment methods (for example depending on whether consumers pay by transfer, direct debit, cash); difficulties for consumers to assert their rights in case of dispute with their supplier (for example an incorrect bill) and last (but not least), affordability of energy (the measures taken are not working in practice).

However it’s not all doom and gloom; there is still a very good quality and security of supply across Europe; the vast majority of consumers have access to energy and supply is very rarely interrupted. All countries have chosen a "supplier of last resort", meaning among others that if an energy supplier goes bankrupt, the consumers of this supplier will still have access to energy.

What can be done to make sure that energy liberalisation really works for consumers? Here are our suggestions for concrete actions:

• Get the market structure right: a few companies produce most of the energy in Europe. Regulators should be as powerful as these companies and should be able to investigate and regulate the markets;

• Stop information overload on bills and make them accurate, clear and timely;

• Ensure a wide variety of ‘cost-reflective’ payment methods in practice;

• Empower consumers by providing them with the necessary information to help them better manage costs and their consumption;

• Protect consumers against disconnection and make reconnection easy.

Monique Goyens, BEUC Director General said: "With this survey, we wanted to have a real insight into how energy markets across the EU are performing for consumers. Now we urge decision makers not to leave consumers in the dark during the ongoing discussion on the 3rd Energy Package and to ensure that real progress is made, rather than just maintaining the status quo."



Source: BEUC

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