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.

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VaasaETT, The University of Oxford and Pöyry Energy are to conduct a project: “Metrics and Methodologies in Support of ICT Policies for a Low Carbon Society”  for the European Commission, Information Society and Media Directorate-General, ICT for Sustainable Growth within the research area Metrics and Methodologies in Support of ICT Policies for a Low Carbon Society.

The project, which commenced on 25th May 2011 will be completed by the end of February 2012.

For more information contact: Jessica Stromback at jessica.stromback at vaasaett.com.

Helsinki, Finland – March 8th, 2011 – The VaasaETT Global Energy Think-Tank today released the first edition of the European Residential Energy Price Report.  The report is based on findings from the renowned Household Energy Price Index (Europe’s leading source for up-to-date household energy prices), published by the Austrian energy regulator E-Control and the VaasaETT Global Energy Think-Tank. Download your free report

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Selected Key Findings:

• Of the 33 markets followed by the VaasaETT Utility Customer Switching Research project in 2009/2010, nine substantially increased their switching rates, with the global average switching rate for 2009 at 6.12%.
• Australia, and in particular Victoria, led the world in electricity customer switching, increasing to record levels and establishing itself as the example for others to follow.
• For the first time since the start of global electricity market liberalization, Great Britain (still a hot market) was knocked off the top spot in Europe, surprisingly by Ireland, a former laggard in terms of customer switching.
• In 2009, nearly 21% of all electricity customers in the Republic of Ireland switched supplier, 2% more than in Great Britain. Between February 2009 and February 2010, Bord Gáis Energy won nearly 21% of the residential electricity market in Ireland, by far the world’s most successful marketing campaign ever for an electricity retailer, measured in terms of the percentage of residential customers in the market who were won over a 12 month period.
• For the first time Social Media Marketing was shown to be a major trigger and channel for utility customer switching.
• Switching also increased in other medium activity markets, such as Finland and Sweden as well as lower activity markets such as Italy, the Czech Republic, France, Greece, Portugal and Slovenia.
• in Austria, Germany, Belgium (Flanders, Wallonia and Brussels), Norway and the Netherlands, switching trends were at similar or lower levels to 2008, limited in part by reduced price volatility and a generally uneventful market.
• Evidence indicates ageneral increase in the momentum of switching activity globally. The trend is typically upward.
• Active utility customer switching can no longer be considered an Anglo Saxon or Nordic only phenomenon.

» Press Release: VaasaETT World Energy Retail Market Rankings Report 2010

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Visit the official site (you will be transferred to Capgemini’s website). Here you can obtain much more information, view the related video and request a copy of this industry leading, renowned report.

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Key Findings Include: EU Ahead of Schedule on 2020 CO2 Emissions Reduction Target, But Behind on Renewable Expansion

Paris, November 17, 2010 – Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, supported by Société Générale Global Research, CMS Bureau Francis Lefebvre and VaasaETT, today announced the results of the twelfth edition of the European Energy Markets Observatory (EEMO)1 report. Key findings show that despite being on track to exceed its carbon emissions reduction target, Europe faces a challenge to meet the renewable energy expansion objective agreed in the EU Climate and Energy Package. The energy consumption reduction, which is a non compulsory target in the European legislation, could also be difficult to meet. The report also examines actions, including demand response, to improve security of supply in Europe during exceptional events. The transformation of the technical design, equipment and management of grids, crucial to achieve the EU Directive goals and to ensure security of supply, is also explored.

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Europe’s  Coalition brings Energy Customers to the Forefront

Brussels, Belgium – November 15, 2010 – To highlight the critical role of energy users in the Smart Grid, leading utilities, technology companies, and industry groups launched the Smart Energy Demand Coalition (SEDC) today at a press conference at the European Union’s Strategic Energy Technology Plan Conference. SEDC members include founding members EDF, ENEL, Gas Natural Fenosa, the Climate Group, Vodafone, Landis+Gyr, VaasaETT, eMeter, Universidad Comillas (Madrid), the European Smart Metering Industry Group, the Demand Response and Smart Grid (DRSG) coalition, The Peak Load Management Alliance (PLMA), Capgemini, Entelios, Silver Springs Networks, Jouleassets, Schneider Electric, and the ZigBee Alliance.

The SEDC is a not-for-profit industry association consisting of utilities, electricity retailers, and providers of services and technologies related to demand response, energy efficiency, smart meters and smart grids. The Coalition aims to share expertise and information to industry participants, regulators policymakers, media and consumers associations in order to facilitate a far more optimal future for demand focused smart grid.

The association will be led by Executive Director Jessica Stromback, a Senior Partner at global energy think tank VaasaETT, and chaired by Chris King, founder of DRSG, a similar group in the United States, and a leading industry expert who has spoken at several industry events in Europe as well as testifying before the U.S. Congress on smart energy demand and smart meters.

“Regulators across Europe are presently debating and finalizing requirements for smart meter and smart grid deployments, including the platforms on which demand response and energy efficiency programs will be built, helping influence the ability of electricity customers to contribute to the advancement of the EU’s aggressive 2020 climate change objectives,” said Stromback.

“Our goal is to provide useful information on various issues including customer behaviour responsiveness, program and technology experiences, optimal market structures and rules, consumer needs and enabling technologies”.

Balancing consumption with generation could be said to form the heart of the intelligence of the Smart Grid.  To a certain extent the success of the “smart” grid is therefore dependent on the ability of utilities to make energy demand “smart”, using such tools as feedback, pricing, automation etc.   Despite their central position within a new Smart Grid future – European demand centered programs are lagging well behind other global markets.

Billions of Euros are currently being spent on the development and rollout of a variety of Smart Grid related technologies throughout Europe.  These include Smart Metering, wind generation, solar generation, electric vehicles and heat pumps etc.  Yet in comparison to the funding, standardization initiatives, regulation, publicity and special interest activity surrounding and supporting these technologies – relatively little attention is paid to the development and support of the demand side programs which will be essential for successfully integrating them into the grid – and are the heart of the Grid’s “intelligence”.

“As we’ve seen in numerous Smart Meter pilots and rollouts throughout Europe, technological development without program development, cannot provide adequate customer benefits to justify costs” said Chris King, Chief Regulatory Officer at eMeter.

As one of its many duties, the SEDC will host an annual smart energy demand conference for all industry participants to share success stories and learnings in programs ranging from pilots to large-scale rollouts.  The SEDC will also have members-only meetings for EU program and policy planning and development, quarterly information sharing and networking webinars, an extensive database of demand side research and consumer-related information, and regular communications, including a bimonthly organization newsletter and special bulletins on policy and industry developments.

About SEDC

The Smart Energy Demand Coalition (SEDC) is an European association for companies and organizations that provide products, services and knowledge in the areas of demand response and smart grid. The SEDC works to raise awareness on how demand response and smart grid technologies can help modernize our electricity system and provide customers with new information and options for managing their electricity use.

About VaasaETT

The VaasaETT, a Global Energy Think Tank, shares and develops best practice for the global utilities industry through our network of thousands of senior executives, officials, researchers and other experts who are for the most part known and trusted personally.  Value is provided to partners through the synergy of Interactive Forums and Collaborative Research or Market Development Projects. The Think-Tank focuses broadly on strategic business, market, innovation and regulatory issues, and is world renowned for its expertise in fields such as Customer Psychology & Behaviour, Smart Metering and Demand Response.

About eMeter

eMeter provides essential software that enables electric, gas and water utilities to realize the full benefits of Smart Grid. Leading utilities worldwide depend on eMeter Smart Grid Management software to reduce operational costs, improve customer service, and drive energy efficiency. With the most large-scale deployments in the industry and strategic partnerships with Accenture, IBM, Logica, and Siemens, eMeter has built a reputation for unparalleled expertise that ensures customer success.

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