Brussels, 5th October 2007

EURO COOP is the European Community of Consumer Co-operatives. Its Secretariat is based in Brussels. Its members are the national organisations of consumer co-operatives in 16 European countries. Created in 1957, EURO COOP today represents over 3,200 local and regional cooperatives, the members of which amount to more than 22 million consumers across Europe.

A step forward but could try harder

Euro Coop welcomes the European Commission proposal for a European Charter on the Rights of Energy Consumers as well as the recently issued Third Energy Market Liberalisation Package. Euro Coop appreciates the European Commission's efforts to establish a competitive energy market for Europe and its attempt to ensure that consumers are provided with high-quality, sustainable and safe energy.

Nevertheless, Euro Coop considers that consumers are not protected enough under the Third Energy Package. Euro Coop would have liked to see a clear commitment from the Commission to include and make the proposed Charter on the Rights of Energy Consumers legally binding. Euro Coop has indeed always argued that consumers benefit from liberalisation only if their basic rights are protected. The energy market liberalisation should not lead to less consumer protection and it is to be borne in mind that, as choices in supply increase, it can be more difficult for consumers to make the right choice if adequate information is not available. Therefore, consumers need to have at their disposal accurate information in order to be aware of their rights and therefore fully benefit from the opening of the market.

For those reasons, Euro Coop supports the Commission proposals to have a Charter on the Rights of Energy Consumers and agrees with most of the elements set therein. It also supports the Commission's motivation to present key goals in a short and comprehensible document. Nevertheless, Euro Coop believes that this document falls short of identifying a clear scope as well as a number of fundamental consumer rights. As a result, there are a number of improvements we would like to propose for consideration.

Scepticism about the nature of the Charter

As a general remark, Euro Coop notes that the status of the Charter is not yet clear, and it is still uncertain to whom this Charter is addressed and therefore who the signatories will be. It is indeed difficult to say whether the Charter consists of information for consumers or of a guideline for energy providers. In this respect, Euro Coop suggests that the Charter should be signed by all stakeholders who have a role to play in making the Charter become a reality.

Euro Coop would also like to draw the Commission's attention on the name 'Charter'. This definition seems to be in fact rather misleading considered that its provisions are not binding. It is then also in this respect that the Commission should clarify the status and the purpose of this document. Besides this, the Commission should explain the means through which the Charter has to be implemented.

More focus on security and sustainability

Euro Coop has noticed that the word 'safety' does not appear a single time in the whole document. This observation does not go without importance as it is one of consumers' basic rights to be supplied with energy in a safe way. These concepts need to be all the more present in relation to connection issues.

Euro Coop also considers that the Charter does not stress environmental protection and sustainability enough. Euro Coop advocates that those notions should be put forward in the Charter to make it clear that energy should not be provided to the detriment of the environment. Indeed and in line with the spirit of the Third Energy Package, Euro Coop considers that the Charter should be seen as a golden occasion to push consumers towards greener energy consumption.

Self-regulation is not always enough

Euro Coop believes that some of the elements that in the Charter are left to self-regulation belong to the reach of the essential consumer rights and that therefore they need to be regulated. Besides that, it is Euro Coop's feeling that their regulatory provisions should be also binding, due to their particular nature. This case applies in particular to provisions regarding access to energy at reasonable and transparent prices.

Moreover, information to final consumers must be extremely transparent, precise and user-friendly. Accordingly, the provision affirming that 'energy invoices should be timely and frequent enough to provide accurate and comprehensible information that also reflects actual consumption' (C. d. 4) should be also binding.

Information must be free of charge for consumers

Euro Coop believes that help-lines installed by energy suppliers should be not only easily accessible, trying to avoid for instance long queuing on telephone lines, but also free. This would ensure that consumers can better interlink with their supplier without incurring in high costs for the service provided. In addition to that, we think that the same principle should apply for the provision of information.

Consumer representation in energy regulatory bodies is key

Euro Coop considers that the Charter should also aim at enhancing consumer influence on the energy market. In this respect, Euro Coop thinks that consumer organisations should participate in regulatory bodies in order to express energy consumers' concerns. The provisions of the Third Energy Package on national regulators should guarantee this.

Stronger social measures are needed

Euro Coop agrees with the Commission on provision H. b) 1. Socially-disadvantaged citizens have the right to a decent life and should therefore be provided with minimum levels of energy services, benefiting from social tariffs or even free of charge if needed. The costs of this should be shared by all energy consumers and be included in the regulated tariffs, along with all the other costs such as network maintenance, functioning costs, environmental costs etc.

Nonetheless, the Commission should provide a clear definition of the concept of vulnerable consumers. Euro Coop thinks that vulnerable does not only mean 'poor', but that it should also apply for example to people affected by long illnesses or disabilities among others. This concept needs to be therefore further elaborated and the suppliers should be provided with a clear list of 'vulnerable consumers'.

With the same aim of protecting the rights of socially-disadvantaged citizens, Euro Coop stands against unjustified disconnection as matter of principle. To be supplied with energy is a vital right for every citizen and consumer. Disconnection has to be seen as an option of last resort and it should be largely justified in terms of time and executed only after an appropriate notice period.

For more information please contact:
Rodrigo Gouveia - Secretary General
E-mail: infoateurocoop.coop
Tel.: +32-2-285-00-70 - Fax.: +32-2-231-07-57

Rosita Zilli - Policy Adviser E-mail: rzilliateurocoop.coop
Tel.: +32-2-285-00-72 - Fax.: +32-2-231-07-57