ERGEG Customer Focus Group 11'10'2005 Karima Bjrk, Svensk Energi

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ERGEG Customer Focus Group11.10.2005Karima
Björk, Svensk Energi
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Four Nordic countries one market
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AgendaCustomer focusSwedish experience
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The deregulated electricity market
Competition
Monopoly
Grid
Generator
Generator
Generator
Regional net
Trader
Local net
Market Place
Supplier
Customer
Supplier
Customer
Consumption
Customer
Production
Customer
Customer
TSO
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Amount of customers that have switched supplier
or renegotiated
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Number of switching
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Degree of satisfaction switching supplier
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Renegotiated contract or switched supplier City
and region
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Certain of not switching
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Contracts domestic customers2001-2005
Statistics Sweden
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Customer confidenceDeregulation
25
53
11
5
Tot Aug-00
26
50
11
5
Tot Feb-01
23
47
12
11
Tot Aug-01
22
45
18
11
Tot-Mar-02
25
46
13
8
Tot Okt-02
15
46
18
13
Tot Mar-03
19
49
13
13
Tot Sept-03
22
45
13
15
Tot Mar-04
18
49
13
16
Tot Okt-04
24
42
14
15
Tot Feb-05

0
20
40
60
80
100
very good
good
neither nor
bad/very bad
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Further development.
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Kundoffensiven an Electricity Supply Industry
Initiative
Varabygdens Energiekonomiska Förening
Kommunalteknik Trelleborg
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Kundoffensiven an Electricity Supply Industry
Initiative
Improving rules and regulations
Implementation
Monthly metering and settlement
Månadsavläsningföruts. för att fungera
Improvement programme
Standardized invoice outline
Standardized customer information
Improving information flow between players

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Customer switching
Propositions

• Unique plant identity EAN code
• Personal code number
• Shorter time for switching supplier
• Central function streamlining customer processes

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Central function streamlining customer processes

• Common standard and technical solution for
  retail data exchange
• Managing interaction between players with high
  quality
• Cost efficiency, automated and reliable data
  access
• Supplier change, metering and reporting, balance
  data

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Transparency of energy prices Price comparisons

• Legal framework new legislation
• Price Indication Act (Oct 1 2004), regulation on
  price comparisons (July 1 2005)
• Electricity prices only
• Prices all inclusive (energy taxes, VAT and
  green certificate fees)
• Price comparisons calculated for three customer
  categories according to Statistics Sweden
• Comparisons must be indicated in all advertisment
  and commercial (e.g. web sites, price lists,
  direct marketing, tele marketing)
• Availability of price information
• Provided by the Swedish Consumer Agency
  (voluntary)

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Transparency of bills

• Minimum level of information
• Specific invoice information (date, customer id,
  invoice number etc.)
• Meter number or similar
• Separate information on consumption, electricity
  and net services respectively
• Date13 February 2005 (not 05-02-13)
• Payment information should be very clear
  including full VAT specification
• The invoice should be easy to understand common
  terminology

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Customer protection

• Laws and agreements
• i.e Electricity Act
• Voluntary agreements and industry recommendations
• Authorities and dispute settlement
• The Swedish Consumer Agency
• The Swedish Competition Authority
• The Energy Markets Inspectorate within the
  Swedish Energy Agency
• National Board for consumer complaints (ARN)
• Public court
• Advice
• Municipal consumer advisors
• Municipal energy consultants
• The Swedish Consumer Electricity Advice Bureau

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TOMORROW
TODAY
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A common retail market