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«Ref: C14-RMF-68-03 19 March 2015 Council of European Energy Regulators asbl Cours Saint-Michel 30a, Box F – 1040 Brussels, Belgium Arrondissement ...»

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CEER Advice on Customer Data

Management for Better Retail Market

Functioning

Electricity and Gas

Ref: C14-RMF-68-03

19 March 2015

Council of European Energy Regulators asbl

Cours Saint-Michel 30a, Box F – 1040 Brussels, Belgium

Arrondissement judiciaire de Bruxelles – RPM 0861.035.445

Ref: C14-RMF-68-03

Customer Data Management for Better Retail Market Functioning

INFORMATION PAGE

Abstract

This document (Ref: C14-RMF-68-03) presents CEER’s Advice on Customer Data Management for Better Retail Market Functioning (electricity and gas).

This document outlines five guiding principles to form a basis for all data management models in Europe: Privacy and Security; Transparency; Accuracy;

Accessibility; and Non-Discrimination. Alongside these principles, CEER makes seven concrete recommendations to facilitate the development of customer data management in European retail energy markets; complementing the existing legislative requirements under the 3rd Energy Package.

The Advice takes into account feedback gathered through a public consultation and public hearing, both held in 2014; the results of which are summarised and reflected in the principles and recommendations. This Advice is complemented by the CEER Evaluation of Responses document – Ref: C14-RMF-68-03a.

Target Audience European Commission, customers, prosumers, suppliers, distribution system operators, energy service companies, network owners, meter operators, Member States, academics and other interested parties.

Keywords Data management; 2020 Vision, smart meters; smart grids, energy consumers

If you have any queries relating to this paper please contact:

Ms Natalie McCoy Tel. +32 (0)2 788 73 30 Email: brussels@ceer.eu 2/38 Ref: C14-RMF-68-03 Customer Data Management for Better Retail Market Functioning Related documents ACER, CEER and ERGEG documents ACER - Energy Regulation: A Bridge to 2025, Conclusions Paper – September • CEER Status Review of Regulatory Aspects of Smart Metering – Ref. C13-RMF 54-05, September 2013 Contributing to a 2020 Vision for Europe‟s energy customers: CEER 3-year rolling • action plan – Ref. C12-SC-09-07, November 2012 A 2020 Vision for Europe’s energy customers – CEER-BEUC Joint Statement, • November 2012 CEER Benchmarking Report on Meter Data Management Case Studies – Ref.

• C12RMF-46-05, November 2012

• CEER Guidelines of Good Practice on Electricity and Gas Retail Market Design, with a Focus on Switching and Billing – Ref. C11-RMF-39-03, January 2012

• Final Guidelines of Good Practice on Regulatory Aspects of Smart Metering for Electricity and Gas, ERGEG – Ref. E10-RMF-29-05, February 2011 ERGEG position paper on Smart Grids – Ref. E10-EQS-38-05, June 2010 • Other documents Conclusions of the 7th meeting of the Citizens’ Energy Forum – March 2015 • European Commission – 2014/724/EU: Commission Recommendation on Data • Protection Impact Assessment (DPIA) Template for Smart Grid and Smart Metering systems – October 2014 European Commission – Benchmarking smart metering deployment in the EU-27 • with a focus on electricity – June 2014

• The Florence School of Regulation THINK project: Shift, Not Drift: Towards Active Demand Response and Beyond – June 2013 European Commission – SMART GRID TASK FORCE – Options on handling • Smart Grids Data – January 2013

• Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and2006/32/EC

–  –  –

European Commission – European Task Force for the Implementation of Smart • Grids into the European Internal Market - Mission and Work Programme 2012

• European Commission - 2012/148/EU: Commission Recommendation on preparations for the roll-out of smart metering systems – March 2012 European Commission – Digital Agenda for Europe – August 2010 •

• Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC

• Directive 2009/73/3C of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC

• Mandate M/441 - DG ENTERPRISE initiative: Standardisation mandate to CEN, CENELEC and ETSI in the field of measuring instruments for the development of an open architecture for utility meters involing communication protocols enabling interoperability – 12 March 2009

–  –  –

Table of Contents

Executive Summary

1 Introduction

1.1 Scoping the issue of customer data management

1.2 What data is within scope of this paper?

1.3 Objectives of the report

2 Identifying relevant stakeholders interests in customer data management........... 15 3 Issues for data management today and tomorrow

4 Guiding principles with recommendations

4.1 Guiding Principle: Privacy and Security

4.2 Guiding Principle: Transparency

4.3 Guiding Principle: Accuracy





4.4 Guiding Principle: Accessibility

4.5 Guiding Principle: Non-Discrimination

4.6 Cost and Cost-Efficiency as a Guiding Principle

5 Summary of guiding principles and recommendations

6 Conclusions

Annex 1 – CEER

Annex 2 – List of abbreviations

Annex 3 – Glossary of Terms

Annex 4 - Mapping the guiding principles of customer data management to the CEER 2020 Vision for Europe’s Energy Customers - RASP principles

Table of tables Table 1: Aspects of data management taken into account in defining the guiding principles

Table 2: Customer position of each country with respect to data privacy and security......... 24 Table 3: Summary of guiding principles and recommendations

Table of figures Figure 1: Stakeholders and their relation to data management.

Figure 2: Mapping the guiding principles to CEER’s 2020 Vision for Europe’s energy customers

–  –  –

Executive Summary CEER believes that efficient, safe and secure data exchange between stakeholders is vital for retail market functioning and customer protection. For customers, a key consideration is which parties have access to their data and for what purpose. The availability of data is also crucial to the operation of effective competition. In the European gas and electricity retail markets, there are currently limitations on the type of data available and on which parties have access to this data. Consequently, data management can be regarded as a potential barrier to competition.

Smart metering will result in a step change in the amount of data available. However, the speed of roll-out of smart meters is different in each country and also within each country in relation to electricity and gas. Consequently, in looking at customer data management and providing advice on the development of such arrangements, it is necessary to recognise the current status as well as progress in the future, with or without smart metering and smart grids and irrespective of the data model (hub/no hub).

This Advice has been developed with a strong focus on the customer perspective, reflecting CEER-BEUCs 2020 Vision for Europe’s energy customers1. Consumers and, by extension, prosumers, are therefore a key stakeholder group. Furthermore, there are a wide range of market participants with an interest in customer data management including suppliers, distribution system operators, energy service companies, network owners, meter operators and national regulatory authorities. These stakeholders are the primary audience for this paper.

During spring 2014, a draft version of this Advice was circulated for public consultation to all interested European stakeholders. We received answers from 58 respondents. As a follow up to the comments received, we invited all respondents to a public hearing in Brussels on 22 September 20142. In preparing the final Advice, we took into account views expressed by respondents to the public consultation and those who attended the hearing.

This Advice begins by identifying three types of data which are directly relevant to retail market functioning: (1) point of delivery identification data; (2) user and contract data; and (3) consumption data. Collectively, we refer to these categories in this document as “customer meter data”. We also take interest in data formats and systems for exchanging data and conclude that there are significant benefits to be gained from standardising these, at least at national level. We will explore the costs and benefits of standardising at a regional or European level in the longer term.

The management of customer meter data, now and in the future, presents both opportunities and risks. A number of these issues exist with or without the use of smart meters, e.g. the protection of vulnerable customers. Other issues become more significant with the roll-out of smart meters, such as innovation, role of third parties and the cost of customer meter data (i.e. affordability). The 3rd Energy Package3 includes a measure for consumer protection whereby European Union (EU) Member States (MSs), or a competent designated authority, shall ensure the interoperability of those metering systems to be implemented within their A 2020 Vision for Europe's energy customers, 13 November 2012 CEER Public Hearing on Data Management, 22 September 2014 Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, Annex 1.

6/38 Ref: C14-RMF-68-03 Customer Data Management for Better Retail Market Functioning territories and shall have due regard to the use of appropriate standards and best practice and the importance of the development of the internal market in electricity. Furthermore, CEER recognises that the 3rd Package includes requirements relevant to data management;

this Advice is complementary to these requirements. For example, Annex 1 of the 3rd Package states that MSs shall ensure that customers “have at their disposal their consumption data, and shall be able to, by explicit agreement and free of charge, give any registered supply undertaking access to its metering data. The party responsible for data management shall be obliged to give those data to the undertaking. Member States shall define a format for the data and a procedure for suppliers and consumers to have access to the data. No additional costs shall be charged to the consumer for that service.” From the customer point of view, we have identified five guiding principles for customer data management: Privacy and Security, Transparency, Accuracy, Accessibility and Nondiscrimination. These principles are closely related to the 2020 Vision for Europe’s energy customers and its RASP principles: Reliability, Affordability, Simplicity, Protection and empowerment. When viewed against these principles, the five guiding principles can be

understand as follows:

–  –  –

CEER plans further work in this field. CEER’s 2015 Work Programme4 shows an ambitious strategy to strengthen the position of the customer on the European market. This includes preparing a benchmarking report on how to remove barriers to entry in European retail energy markets. As part of this work, we plan to consider the extent to which the absence of national/EU standards for data management limits entry to markets in the context of other Final CEER 2015 Work Programme – Ref: C14-WPDC-26-05, 9 January 2015

–  –  –

barriers. CEER will also write a position paper on a competitive retail market, in which the focus will be on the customer and the customer’s needs in a well-functioning retail market.5 CEER 2015 Work Programme Ref: C14-WPDC-26-05 and the ACER “Energy Regulation: A bridge to 2025”

–  –  –

At the 2012 Citizens’ Energy Forum, CEER and BEUC (the European Consumers Organisation6) launched A 2020 Vision for Europe’s energy customers. Retail market competition is at the heart of this Vision, which sets out an energy sector that puts smaller customers first. The present advice develops CEER’s views on what characterises a wellfunctioning data management model to the benefit the energy customers. It also follows regulators’ reflections in the ACER Bridge to 2025. One of the work packages identified at the Citizens’ Energy Forum was data management for better retail market functioning; this Advice represents regulators’ efforts to address this important issue7.

Legal context Annex 1 of the 3rd Energy Package states that EU Member States (MSs) shall ensure that customers “have at their disposal their consumption data, and shall be able to, by explicit agreement and free of charge, give any registered supply undertaking access to its metering data. The party responsible for data management shall be obliged to give those data to the undertaking. Member States shall define a format for the data and a procedure for suppliers and consumers to have access to the data. No additional costs shall be charged to the consumer for that service”.

In addition, Annex 1 of the 3rd Package also states, with respect to smart meter systems, that “The Member States, or any competent authority they designate, shall ensure the interoperability of those metering systems to be implemented within their territories and shall have due regard to the use of appropriate standards and best practice and the importance of the development of the internal market in electricity”.

Article 9 of EU Directive 2012/27/EU on energy efficiency (the Energy Efficiency Directive)8 sets out rules in relation to metering. In particular, the Directive establishes the importance of customers, or third parties acting on behalf of customers, being provided with good quality data. It also reinforces the importance of ensuring the security of data provision and protecting the privacy of customers.



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