A Eurelectric response paper on CEER consultation on Dynamic Regulation to Enable Digitalisation of the Energy System

KEY MESSAGES

 Technological advancements, telecommunications and data analytics are revolutionising almost all economic sectors. Synergies between traditionally different sectors are developing (e.g. health and energy). Processes are becoming more efficient and new services and businesses are flourishing. In the energy sector, digitalisation is transforming the business architecture, redrawing boundaries and redefining relationships between consumers and utilities.

 At a time where boundaries between sectors are getting blurred, the regulatory framework must ensure that all data – and how it is exchanged – is covered by consistent and appropriate regulation. It needs to make sure that commercial players compete on equal terms to access data and provide services to consumers. Regulation must also ensure that DSOs have the right incentives and the necessary conditions to invest in/use smarter, digital solutions when costefficient and that privacy and security, including cybersecurity, are safeguarded.

 We agree that the value proposition for households basically relies around cost savings, convenience, choice and consumer participation. If a prioritization was needed, “choice” is probably the value proposition that would better fit with the future landscape, as customers are evolving from being a mostly uniform passive customer base to being active players, with very different needs in terms of energy and related services.  In our view, there are 3 key enablers to unlock the benefits of digitalisation for consumers: Competitive and liberalised markets, an innovation friendly regulatory framework and an enabling smart grid infrastructure.

 The main challenge for regulators will be to ensure that policy and regulation does not create an unjustified barrier to innovation – but rather promote it – while continuing to empower and protect consumers during the transition. In the energy sector, unnecessarily rigid and pervasive regulatory rules are probably the biggest barrier to the development of solutions that would better answer customers’ new requests.

 Going forward, we would suggest regulators to focus on the 5 following priorities: regulation of intermediaries, network tariffs, regulation of platforms and new market places, market based procurement of flexibility services by DSOs and best practice approaches to enable trials of new products and business models.

For more details: A Eurelectric response paper on CEER consultation on Dynamic Regulation to Enable Digitalisation of the Energy System