Consideration of Alternative Billing Regimes for the Common Nordic End User Market
As part of the Nordic Energy Regulators (NordREG) steps towards creating a Common Nordic Retail Market for Energy, VaasaETT’s Dr Phillip E. Lewis was chosen to lead impact assessment of Billing regimes. The project which was carried out within the Market Rules Task Force and reported to the Common Nordic end user market Steering Group within NordReg.
Report Cover Note written by NordREG:
About this report
The Nordic Energy Regulators (NordREG) have for some years been promoting the idea of a truly borderless free Nordic electricity market. This includes both the wholesale and the retail markets. NordREG has been given the task by the Nordic ministers for energy to intensify the work to achieve a common Nordic retail electricity market. To make this work possible NordREG set up the framework for the project organisation during the autumn of 2010. This work has now started
The focus for 2011 and 2012 is to develop and design the target market model for the Nordic market. This means making recommendations on a number of issues. In that work it is essential to develop the customer interface and the market rules at a high level. This report presents several very significant pieces of the puzzle that will form the target market model and especially the future billing model for the common Nordic end user market. The development of the target market model also includes mapping and studying the future data exchange (including the issue of hubs and databases) by the Business Process Task Force, further studies on customer protection and supplier of last resort schemes by the Customer Empowerment Task Force and looking into balancing issues and smart metering within the Metering Task Force. Given the final recommendation on billing, the issue of harmonisation network tariffs may also be studied deeper.
To produce the report that this cover note is added to, NordREG has hired the consultant Dr. Philip Lewis of Vaasa ETT to analyse and make recommendations for what future billing regime should be used in the common Nordic end user market. The choice of billing regime has been identified by NordREG as one of the most important parts of the target market model for the Nordic market. NordREG has earlier stated that the common Nordic end user market should be based on s supplier centric approach. In general this means that most issues, from a customer perspective, are handled by the supplier. However, the question of the future billing regime has not been finally decided yet. This report forms the basis for making such a decision, and given the public consultation responses, it will be possible for NordREG to form a complete and final recommendation on the billing regime.
This version of the report is meant for public consultation, meaning that the report and the recommendations presented in the report are not meant to be seen as the final statements from NordREG.
For more information and to view the report: Click Here >>
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