COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering a New Deal for Energy Consumers
Date: 2015-07-15
Institutions: Directorate-General for Energy, European Commission
Subjects: consumer protection, energy consumption, energy efficiency, energy law, energy saving, energy supply, measuring equipment, price of energy

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 15.7.2015  COM(2015) 339 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering a New Deal for Energy Consumers {SWD(2015) 141 final}  
 
 
1.  INTRODUCTION 

The Energy Union Framework Strategy1 sets out the vision of an Energy Union "with citizens 
at  its  core,  where  citizens  take  ownership  of  the  energy  transition,  benefit  from  new 
technologies  to  reduce  their  bills,  participate  actively  in  the  market,  and  where  vulnerable 
consumers are protected".  

While  the  past  decade  has  transformed  the  energy  sector  in  Europe,  retail  energy  markets, 
which  form  the  focus  of  this  communication,  have  not  kept  up.  Obstacles  to  consumers  – 
households,  businesses  and  industry  -  fully  benefitting  from  the  ongoing  energy  transition, 
meaningfully controlling their consumption, and lowering their bills include:  

  The lack of appropriate information on costs and consumption, or limited transparency 
in  offers,  makes  it  difficult  for  consumers  (or  reliable  intermediaries  and  energy 
service  companies,  such  as  aggregators,  acting  on  their  behalf)  to  assess  the  market 
situation and opportunities.  

 

 

 

Increasing proportion of network charges, taxes and particularly levies in the average 
final household electricity bill. 

Insufficient  competition  in  many  retail  markets,  a  lack  of  reward  for  active 
participation, and difficulties in switching act as disincentives.  

Insufficiently developed markets for residential energy services and demand response 
narrow consumers' choices. 

  Preventing  consumers    from  self-generation  and  self-consumption  reduces  potential 

gains to them.  

  Unequal access to information and high entry barriers for new competitors slow down 
the adoption of available advanced technologies and practices such as smart metering, 
smart appliances, distributed energy sources and energy efficiency improvements. 

The Commission's vision for the new electricity market design aims to deliver a new deal for 
energy consumers, including by better linking wholesale and retail markets. Taking advantage 
of  new  technology,  new  and  innovative  energy  service  companies  should  enable  all 
consumers to fully participate in the energy transition, managing their consumption to deliver 
energy  efficient  solutions  which  save  them  money  and  contribute  to  overall  reduction  of 
energy consumption.  

2.  A THREE-PILLAR STRATEGY TO DELIVER A NEW DEAL FOR ENERGY CONSUMERS 

In  extensive  consultations  with  citizens,  consumers  and  stakeholders,  including  a  public 
consultation in the first half of 20142, and in discussions in Commission-led expert groups3, 
the  following  three  key  points  have  been  identified  as  core  to  delivering  a  new  deal  for 

1 COM(2015) 80final 
2 http://ec.europa.eu/energy/en/consultations/consultation-retail-energy-market 
3 Smart Grids Task Force; Citizens' Energy Forum  and its expert groups on Vulnerable Consumers and on Consumers as 
Energy Market Actors; Energy Sub-Group of the European Consumer Consultative Group. 

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consumers:  consumer  empowerment;  smart  homes  and  networks;  data  management  and 
protection.  

2.1. 

Empowering consumers to act  

2.1.1. 

Saving money and energy through better information 

Consumers spend on average 6.4% of their total consumption on electricity, gas, heating and 
cooling – up by 15% compared to five years ago. Around 40% of energy used in the EU is 
consumed in buildings, of which 80% is used for heating and cooling.4  

A  more  efficient  use  of  energy  is  one  key  element  in  cutting  consumer  bills  and  therefore 
energy  efficiency  is  considered  in  all  decision-making  on  the  Energy  Union.  While 
refurbishment  of  the  building  stock  is  key  in  this  respect,  installing  simple  tools  such  as 
heating  controls  and  thermostats  can  already  have  a  significant  impact  on  energy 
consumption. Important energy savings can also be achieved with increasing the efficiency of 
products  like  boilers,  TVs,  fridges  and  washing  machines.  The  revised  proposal  for  energy 
labelling  put  forward  as  part  of  this  package  will  provide  further  transparency,  encourage 
manufacturers to innovate and help consumers in making informed choices towards the most 
efficient appliances.  

The  introduction  of  metering  and  billing  of  individual  consumption  in  multi-apartment  and 
multi-purpose  buildings  can  trigger  a  reduction  of  the  demand  for  heating/cooling  by  10-
30%.5  Experience  also  shows  that,  thanks  to  ICT-based  solutions,  providing  end-users  with 
information on their consumption via internet, tenants are able to reduce their consumption by 
around 8% simply by changing their heating habits.6  

The internal energy market legislation and the Energy Efficiency Directive have established 
consumer  rights  to  accurate  metering  and  consumption  information.  Transparent  and  up  to 
date billing information increases consumer trust and engagement. However, the vast majority 
of  Europeans  receive  this  information  once  or  twice  a  year  at  most,  and  disputes  over 
metering  are  a  frequent  occurrence.  To  help  consumers  understand  their  energy  bills,  the 
Commission will, together with national regulators, assess how the clarity and comparability 
of  the  content  of  bills  for  consumers  could  be  increased.  This  should  lead  also  to  better 
consumer  awareness  of  the  individual  components  of  energy  prices  and  bills,  including 
through better transparency of network charges, taxes and levies. 

All  consumers,  and  reliable  intermediaries  and  energy  service  companies  contracted  by 
consumers  to  act  on  their  behalf,  should  have  easy  access  to  their  real-  or  near-  time 
consumption data to enable them to adapt consumption and save energy. Such real time data 
is not necessary for billing purposes and therefore could be accessible to consumers directly 
from the metering system via a standard interface.  
Smart meters7 play a key role in delivering free and frequent access to accurate consumption 
data, better billing and fewer metering disputes. Data from Member States show that 72% of 

4 Sources: Energy prices and costs in Europe, COM(2014) 21 /2, 29.1.2014, Energy Efficiency and its contribution to energy 
security and the 2030 Framework for climate and energy policy, COM(2014) 520 final, 23.7.2014. These and other issues 
(like the synergies between electricity and heating & cooling networks) will be addressed in the up-coming European's Union 
Heating and Cooling Strategy and in the review of the Buildings Directive. 
5 Source: Annex to the Impact Assessment for the Energy Efficiency Directive, SEC(2011) 779 final, 22.6.2011 
6 Study on “Reducing energy consumption in buildings with ICT SMART 2013/0073”. 
7 Smart meter is an electronic system that can measure energy consumption, providing more information than a conventional 
meter, and can transmit and receive data using a form of electronic communication; cf. Art. 2.28 of the EED 2012/27/EU 

3 

 
 
 
 
                                                 
European consumers are foreseen to have a smart electricity meter by 20208 as result of their 
wide-scale deployment, underway or planned as of today in 17 Member States.9 The benefits 
and costs of such roll-outs must be fairly shared between industry and consumers, taking into 
account the cost-benefit analyses and views of business and consumer organisations. 

While preparing the review of the energy efficiency legislation (Energy Efficiency Directive 
and Energy Performance in Buildings Directive) and the electricity market design initiative, 
the  Commission  will  consider  how  consumers  could  benefit  from  easier  and  more  frequent 
access to their consumption data including the possibility to request a smart meter if it is not 
systematically rolled out in their area.  

2.1.2. 

Giving consumers a wide choice of action 

With  an  energy  transition  underway,  new  opportunities  arise  for  consumers  to  benefit  from 
playing an active role. Consumers across the Union should be free to choose their preferred 
form  of  active  participation  in  energy  markets,  either  directly  or  by  delegating  their  energy 
decisions  to  reliable  intermediaries  and  energy  service  companies,  such  as  aggregators  who 
will act on the consumer's behalf.  

a)  Switching suppliers – benefiting from increased comparability 

Giving all consumers the right to shop around for the best energy deal and energy source of 
their  choice  is  a  key  change  brought  in  with  the  EU's  internal  energy  market.  Yet  many 
citizens  remain  unaware  of  their  right  to  switch  supplier  and  energy  contract.  To  boost 
consumer awareness  of this and other rights,  in 2014 the  Commission  prepared information 
setting out the key energy consumer rights established in EU legislation.10  

Making the switch needs to be technically easy, quick and reliable. The initiatives of national 
regulatory  authorities  to  shorten  switching  times  are  welcome  in  this  regard.11  Removing 
switching fees and penalties that limit consumer choice and competition overall could also be 
considered. 

Most importantly, the switch needs to be based on easily accessible, transparent, trustworthy 
and  readily  comparable  information  covering  price  as  well  as  contractual  quality  and 
customer satisfaction, e.g. through customer rating systems for all suppliers and offers in the 
market.  Information  on  the  share  and  type  of  energy  sources  used  by  suppliers12  further 
enables consumers to make better informed choices. 

The Commission will work with national regulatory authorities to develop transparency and 
reliability criteria for energy comparison tools and to ensure that each consumer has access to 
at least one independent and verified comparison tool to assess the current contract against all 
offers available from the market.  

8 "Benchmarking smart metering deployment in the EU-27 with a focus on electricity" (COM(2014) 356): 16 Member States 
have committed themselves to installing 245 million smart meters worth some €45 billion by 2020.  
9  Sweden, Italy, Finland, Malta, Spain, Austria, Poland, UK, Estonia, Romania, Greece, France, Netherlands, Luxembourg, 
Denmark, Ireland, and Latvia 
10http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/docs/consumer_market_brochure_14
1027_en.pdf and 
http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/Publication/ACER_Market_Monitoring_Report_2014.p
df 
11 Council of European Energy Regulators. 
12 e.g. such as already foreseen under Article 3.9(a) and (b) of Directive 2009/72/EC 

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Building  on  first  efforts  by  industry  and  consumer  organisations,  and  on  good  practices 
identified  in  the  Citizen’s  Energy  Forum13,  the  Commission  will  seek  to  identify  in 
collaboration with national regulators minimum standards for key information in advertising 
and bills, especially as regards price comparison.  

Regulation of retail prices can represent a particularly strong barrier to effective competition 
as  the  Energy  Union  communication  points  out.  Member  States  often  cite  an  under-
performing retail market or social protection needs as justification for price regulation. Social 
policy objectives such as protecting vulnerable consumers with general regulated tariffs lack 
transparency  and  may  actually  increase  energy  costs  for  vulnerable  and  non-vulnerable 
consumers alike. Therefore, other more sustainable and precise measures should be explored 
to  help  Member  States  deregulate  prices  for  end-users.  The  Commission  is  engaging  with 
Member States in the phase-out of prices regulated below cost, as set out in the Energy Union 
strategy,  making  also  sure  that  such  phase-outs  are  complemented  with  targeted,  effective 
protection  of  vulnerable  consumers.  Examples  of  successful  phase-outs  of  regulated  prices, 
such as in Ireland, present lessons for other Member States.  

b)  Realising the value of flexibility through demand response 

The  growth  of  variable  renewable  energy  makes  demand  response  ever  more  important. 
Energy  efficiency  and  demand  response  are  often  better  options  for  balancing  supply  and 
demand than building or keeping in operation more power plants or network lines. It is clear 
that the choice on participating in demand response must always stay with the consumer.  

In  some  parts  of  Europe,  retail  demand  response  is  already happening. Industrial  and  office 
buildings in the UK have made cost savings up to 24% and 10-36% reductions in electricity 
consumption thanks to flexible automated demand response programmes.14  

A key enabler of demand response is consumers' access to price signals that reward flexible 
consumption. These can be offered in the form of supply contracts based on dynamic pricing, 
or contracts that involve load control responding to market or grid conditions. The impacts of 
such contracts would have to be well explained to consumers. A further incentive could be to 
lower  network  charges  if  consumption  is  reduced  when  the  networks  are  congested.  While 
consumers  should  be  incentivised  to  participate  in  demand  response,  those  unable  to  shift 
their demand must not be penalized. 

Although still in their infancy, the initial experience with dynamic price contracts shows that 
they can deliver for consumers.15 Where this is already reality – e.g. in Finland or Sweden – 
retail consumers increasingly opt for dynamically priced electricity contracts16, saving 15% to 
30% on their electricity bills. The pending revision of the Energy Efficiency Directive and the 
development  of  legislative  proposals  implementing  the  new  market  design  present  an 
opportunity to assess how to increase the availability of time differentiated contracts.  

13 https://ec.europa.eu/energy/sites/ener/files/documents/2012111314_citizen_forum_meeting_working_group_report.pdf; 
https://ec.europa.eu/energy/sites/ener/files/documents/20131219-e-billing_energy_data.pdf 
14 Fortum 2014, SEAM group 2014 and Thames Valley Vision pilot scheme, Bracknell UK 2013. 
15 In Finland in 2014 household electricity prices declined 4% in continuous fixed price contracts and ca 10% on the spot-
price linked contracts, the cheapest contract category since 2012; Source: Energiavirasto (NRA) 2015. 
16 In Sweden fixed price contracts still dominate (43% in 2012) but variable ones (27,5%) are gaining ground (+17% y-o-y). 
The  total  electricity  cost  for  a  customer  with  a  default  contract  was  50%  higher  in  2012  compared  to  a  flexible  contract. 
Source: Energi Inspektion Annual report 2013.  

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c)  Reducing energy bills through self-generation and consumption 

The combination of decentralised generation and storage options with demand side flexibility 
can further enable consumers to become their own suppliers and managers for (a part of) their 
energy needs, becoming producers and consumers and reduce their energy bills  

Decentralised renewable energy generation, whether used by consumers for their own use or 
supplied to the system, can usefully complement centralised generation sources. Where self-
consumption  exhibits  a  good  match  between  production  and  load,  it  can  help  reducing  grid 
losses and congestion, saving network costs in the long-term that would otherwise have to be 
paid by consumers 

If  consumers  generate  their  own  electricity  from  onsite  renewable  energy  systems,  they 
consume  less  electricity  from  the  grid.  This  will  affect  how  network  tariffs  are  calculated. 
Network  tariffs  should  be  designed  in  a  cost-reflective    and  fair  manner  while  supporting 
energy efficiency and the renewable energy objectives and being simple and transparent for 
consumers.  

Energy  self-generation  is  discussed  in  more  detail  in  the  Staff  working  Document 
accompanying this Communication. 

d)  Increasing consumer participation through intermediation and collective schemes  

Collective schemes and community initiatives have been emerging with increasing frequency 
in  a  number  of  Member  States.  More  and  more  consumers  engage  in  collective  self-
generation  and  cooperative  schemes  to  better  manage  their  energy  consumption.  This 
innovation  by  consumers  is  also  resulting  in  innovation  for  consumers  and  opens  up  new 
business models. Energy services companies, aggregators, brokers, data handling companies, 
other  intermediary  companies  and  frequently  also  consumer  organisations  are  emerging  to 
help  consumers  achieve  better  energy  deals  while  relieving  them  from  administrative 
procedures and cumbersome research.  

This also opens new opportunities for local communities and authorities whose regional and 
local  energy  initiatives  can  provide  a  valuable  link  between  decision-makers,  citizens  and 
innovators at the local level.  

The Covenant of Mayors with its more than 6000 signatory cities shows that local authorities 
are  willing  to  play  their  part  in  the  new  energy  system  supporting  innovative  local  energy, 
including solutions developed under the Smart Cities and Communities European Innovation 
Partnership.  

The Commission will continue its work with the Covenant of Mayors to facilitate consumer 
participation  in  the  energy  market  and  in  the  effective  governance  for  the  Energy  Union 
including through local energy initiatives. Furthermore, the revision of the Renewable Energy 
and  Energy  Efficiency  Directives  as  well  as  the  market  design  initiative  will  present  an 
opportunity  to  assess  how  to  facilitate  effective  access  to  innovative  energy  suppliers, 
including collective schemes. 

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2.1.3. 

Maintaining full protection for consumers 

EU legislation already provides energy consumers with extensive rights, whose enforcement 
remains  a  priority.  The  Commission  will  assess  the  implementation  of  these  rights  and 
provide  a  more  detailed  guidance  in  collaboration  with  consumer  organizations  and 
regulators.  Inclusion  of  energy  specific  laws  in  the  Annex  of  the  Consumer  Protection 
Cooperation Regulation will be considered. The primary responsibility  for  enforcing energy 
consumers' rights and protection remains with Member States.  

With  more  options  and  offers,  consumers  need  even  greater  assurances  that  they  enjoy 
effective protection from unfair commercial practices. Authorities investigating such practices 
and  complaints  in  the  energy  sector  could  benefit  from  closer  cooperation  with  their 
counterparts in other Member States. 

Energy  poverty  is  another  important  issue  for  Member  State  action,  one  where  social  and 
energy policy measures meet. Energy poverty must be tackled in the wider context of social 
security,  yet  without  ignoring  the  need  for  targeted,  effective  assistance  reflecting  best 
practices in the energy field.17 
Work  on  best  practices  undertaken  with  stakeholders  in  the  Citizens'  Energy  Forum18  has 
highlighted  that  energy  efficiency  improvements  tend  to  be  the  best  long-term  solution  to 
energy poverty. This should be reflected in Member States' actions to fulfil their obligations 
under EU legislation to reduce consumer vulnerability and to address energy poverty.19 Here 
the  Citizen's  Energy  Forum  facilitates  the  exchange  of  best  practice  on  the  most  effective 
assistance, first and foremost through energy efficiency.  

To  facilitate  Member  States  to  meet  their  obligations  in  this  respect  and  to  increase 
transparency,  the  Commission  will  consider  how  to  improve  EU-wide  data  collection  and 
monitoring of energy poverty while ensuring the security, privacy and protection of personal 
data.  Common  minimum  criteria  could  be  considered  for  the  identification  of  consumer 
vulnerability20 and energy poverty. 

2.2.  Making smart homes and networks a reality 

Smart technologies for the grids and the home should simplify consumer involvement in the 
new  retail  market  and  not  create  burdens.  Integrated  automated  solutions  can  enable  and 
simplify  consumer  action  by  connecting  smart  metering  systems  with  smart  home  energy 
management  systems,  and  smart  appliances  which  make  it  simple  to  manage  consumption, 
participate in demand response, or match consumption with their micro-generation as closely 
as possible according to energy price information. Such smart technologies will also facilitate 
the introduction of electric vehicles. 

For both consumers and the energy system to get the full benefit from these technologies, the 
smart metering systems to be installed must be fit for purpose in terms of the functionalities 

17 These often include energy-specific actions, such as energy efficiency improvements which can minimise wasteful energy 
use and make vulnerable consumers' energy bills more affordable. 
18 See Guidance document on Vulnerable Consumers, November 2013: 
http://ec.europa.eu/energy/sites/ener/files/documents/20140106_vulnerable_consumer_report_0.pdf 
19 See 2015 study at https://ec.europa.eu/energy/en/content/energy-poverty-may-affect-nearly-11-eu-population-study 
20 Ongoing Commission study on Consumer vulnerability across key markets in the European Union: 
http://ec.europa.eu/chafea/consumers/tenders_2013_cons_08.html 

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they  offer.21  Furthermore,  the  deployment  of  the  advanced  metering  infrastructure  should 
guarantee technical interoperability as well as consumer access to their consumption data via 
an open standard non-proprietary interface.22 

European  standardisation  bodies23  have  already  delivered  a  complete  set  of  standards  for 
smart  meters  and  for  the  overall  architecture  and  individual  components  of  smart  grids, 
covering  both  technology  and  communication  issues  (i.e.  protocols  for  exchange  of 
information). The Commission will follow the implementation of these standards closely and 
will analyse whether the European standards for smart grids and smart metering systems, as 
well as the recommended functionalities for the latter, are consistently applied to ensure that 
they deliver the desired functionality and interoperability.  

Standards and interoperability are important also for the in-home communication between a 
smart  appliance  and  energy  management  systems  so  that  demand-response-ready,  in-home 
equipment  can  be  easy  to  install  and  operate.  Industry  needs  to  finalise  and  apply  such 
standards24  quickly  and  should  be  supported  in  this.  Synergies  with  other  domestic  systems 
(e.g.  water  supply)  should  also  be  sought  to  allow  smart  appliances  optimise  also  their 
consumption. 

EU funding and financing will continue to be used for research and demonstration into smart 
home  and  smart  grid 
international 
competitiveness of EU firms in this high-value sector.  

technologies,  and 

their  security, 

to  boost 

the 

Furthermore,  managing  network  investments  and  operations  cost-effectively  in  the  new 
circumstances will be crucial. Remuneration schemes for distribution system operators should 
be cost-reflective and also incentivise them to cost-effectively engage in innovative network 
development  solutions  and  act  as  neutral  market  facilitators  when  responsible  for  data 
handling.  

Member  States  and  the  industry  should  make  full  use  of  the  European  Structural  and 
Investment  Funds  and  the  European  Fund  for  Strategic  Investments  to  co-finance  smart 
technology deployment. Investments in the smart energy technology and research, including 
through  the  Horizon  2020  programme,  will  carry  multiple  parallel  benefits  by  boosting 
European  competitiveness  in  high-value  industrial  sectors  as  called  for,  inter  alia,  in  the 
Digital Single Market.  

The Commission will, through collaboration with the Council of European Energy Regulators 
and  the  Agency  for  the  Cooperation  of  Energy  Regulators  ensure  that  national  regulatory 
authorities'  approaches  to  the  regulation  of  distribution  system  operators  incentivize 
innovation  and  cost-efficiency  as  well  as  transparency  of  the  quality  of  energy  distribution 
operations. 

21 Commission  Recommendation 2012/148/EU on preparations for the roll-out of smart metering systems, of 9 March 2012,  
22 E.g. a USB interface and data encoded using DSLM/COSEM. 
23 Comité Européen de Normalisation (CEN), Comité Européen de Normalisation Électrotechnique (CENELEC) and 
European Telecommunications Standards Institute (ETSI). 
24 E.g. ETSI/OneM2M, Ontology for Smart Appliances, Energy Labelling. 

8 

 
 
 
 
 
 
 
 
 
                                                 
2.3. 

Special attention to data management and protection  

An important part of value in the future energy market will stem from large data flows and the 
wider  integration  of  information  and  communication  technology  into  energy  systems. 
Therefore, the data collection and processing party in the context of smart metering systems 
or other services empowering consumers to act should provide direct access to these data to 
the customer and any third party designated by the consumer. Access should be effective and 
non-discriminatory.25 This  is  essential where  the metering or  billing entity is  also providing 
other services in the market. While data handling can follow different models26, the neutrality 
of the entities managing data access is of the utmost importance.  

For value-added services, only third parties authorised by the consumer must have access to 
consumer's consumption and billing data. As part of the Digital Single Market Strategy, the 
Commission  will  propose  in  2016  a  European  "Free  flow  of  data  initiative"27  where 
ownership,  interoperability,  usability  and  access  to  data  (including  energy  data)  will  be 
considered.  

The energy sector must remain at the forefront of protecting data security as well as privacy 
and data protection of all consumers. 

The  Commission  proposals  for  the  Network  and  Information  Security  Directive  and  for  a 
General  Data  Protection  Regulation,  both  currently  under  discussion,  address  the  emerging 
risks  with  data  handling.  In  anticipation  of  such  an  evolution  in  the  general  regulatory 
framework on data security and privacy protection, the Commission has been working on the 
relevant sector-specific tools with stakeholders from the energy sector.  

In October 2014, the Commission adopted a Recommendation28 which provides guidance to 
Member  States  and  industry  on  how  to  carry  out  an  impact  assessment  of  data  protection, 
allowing them to anticipate potential impacts on the rights and freedoms of data subjects and 
implement  stringent  safeguards.29  Following  the  Recommendation  will  allow  the  energy 
sector to be at the forefront of data protection in the most  unbureaucratic and cost-effective 
manner. 

3.  CONCLUSION AND NEXT STEPS 

Delivering the New Deal set out in the Energy Union Strategy means putting consumers at the 
centre  of  a  thriving  and  functioning  energy  system.  The  steps  to  achieve  this  can  be 
summarised in the following ten points:  

1.  Providing  consumers  with  frequent  access,  including  in  near  real-time,  to  partially 
standardised,  meaningful,  accurate  and  understandable  information  on  consumption 
and related costs as well as the types of energy sources. 

25 Energy Efficiency Directive 2012/27/EU and Commission Recommendation 2012/148/EU on preparations for the roll-out 
of smart metering systems 
26 Report at https://ec.europa.eu/energy/sites/ener/files/documents/xpert_group3_first_year_report.pdf 
27 http://ec.europa.eu/priorities/digital-single-market/ 
28 Commission Recommendation 2014/724/EU on a DPIA Template for Smart Grids and Smart Metering Systems.  
29 The Recommendation promotes the testing and use of a Data Protection Impact Assessment Template developed jointly 
between the Commission and industry experts to serve as an evaluation and decision-making tool for entities planning or 
executing investments in the smart grids sector. 

9 

 
 
 
 
 
 
 
 
                                                 
2.  Making  switching  suppliers  quick  and  simple,  enabled  by  transparent  and  directly 
comparable  offers  from  competitive  suppliers  and  not  hampered  e.g.  by  switching 
fees.  

3.  Ensuring that consumers remain fully protected in  the new energy market, including 

against unfair commercial practices. 

4.  Providing consumers with possibilities to become active energy players and gain from 
action, for example adjusting and reducing their consumption as prices evolve, helping 
balance out renewable energy variability by embracing demand response or producing 
or storing energy. 

5.  Keeping  consumption/metering  data  under  the  consumers'  control;  where  consumers 
grant other parties (suppliers and intermediaries) access to their data, their privacy, the 
protection and the security of their data must be guaranteed.  

6.  Providing consumers access to competitive and transparent market-based offers, while 
giving  consumers  in  vulnerable  situations  and/or  facing  energy  poverty  targeted  and 
effective assistance reflecting best practices and contributing to energy efficiency and 
savings. 

7.  Providing  consumers  the  option  of  participating  in  the  market  through  reliable 
intermediaries,  collective  or  community  schemes.  These  intermediaries  need  to  have 
fair access to the markets and consumption data and be monitored in the same manner 
as suppliers.  

8.  Making sure smart home appliances and components are fully interoperable and easy 
to  use  and  smart  metering  systems  fit  for  purpose  with  the  recommended 
functionalities to maximise their benefit to consumers. 

9.  Ensuring  cost-effective  and  stable  network  operation;  ensuring  non-discriminatory 
handling  of  metering  data  with  potential  commercial  value  by  Distribution  System 
operators or any other responsible entity.  

10. Strengthening  the  link  between  research,  innovation  and  industry  for  developing 
international  competitiveness  in  smart  home  and  smart  grid  technologies,  in 
cooperation with all market players. 

Existing legislation at EU and national level, and effective regulatory oversight provide many 
of  the  tools  to  realise  this.  Action  is  needed  at  Member  State  level,  and  collaborative 
initiatives  of  the  industry,  consumer  organisations  and  national  regulators  will  also  have  an 
important role to play in the effective governance of the Energy Union. Upcoming reviews of 
existing  legislation  (the  Energy  Efficiency  Directive,  the  Energy  Performance  of  Buildings 
Directive,  and  the  Renewable  Energy  Directive),  the  Network  Codes  and  the  planned  new 
market design initiative, and their impact assessments, will provide the opportunity to identify 
where  action  is  required  at  EU  level  in  order  to  deliver  a  new  deal  for  the  consumers.  The 
revision of the energy efficiency labelling directive is a first step to help consumers in making 
informed choices to reduce their energy bills.  

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