Energy Poverty by Stefan Bouzarovski

Author:Stefan Bouzarovski
Language: eng
Format: epub
Publisher: Springer International Publishing, Cham

In its report on progress in the completion of the Internal Energy Market (IEM) in 2013, the European Council noted how many Member States have taken measures to protect vulnerable consumers and listed a number of examples: ‘establishing a definition of vulnerable consumers for policy purposes, establishing suppliers of last resort, focused assistance, establishing social tariffs or social discounts, subsidized energy efficiency measures, setting minimum periods before energy deliveries can be suspended in cases of non-payment, prohibitions to cut off energy services during the winter, et cetera’ (Council of the European Union, 2013, p. 9). A number of subsequent EU documents on the introduction of the TEP offered broad guidance on national measures that might be introduced, commonly emphasizing the need to use a policy mix that least distorts the IEM and is well targeted to reach only those truly in need of assistance.

The aforementioned SANCO Report found that most Member States used a combination of economic measures (to ensure prices are affordable and to assist consumers in arrears) and non-economic measures (regulation of the process for arrears and disconnection and support in finding the best tariff and increasing energy efficiency). The main types of measure are special prices offered to certain groups, helping to find the best tariff, energy-related payments (e.g. fuel allowance), grants to improve home energy efficiency and social security benefits (Directorate General for Health and Consumers, 2010). Similarly, the CEER found that Member States commonly employed specific protection measures for customers in remote areas, suppliers of last resort, default suppliers and social tariffs for vulnerable customers (Council of European Energy Regulators, 2012).

Despite having set a target to complete the IEM by 2014, however, the EU struggled to fully implement the provisions of the TEP. The Commission frequently pursued infringement proceedings against Member States not transposing or correctly transposing the TEP and its related legislation. Initially the Commission opened 38 infringement proceedings against 19 Member States, prompting an acceleration of national measures and the closure of many of the proceedings soon after. Additionally, the energy market was consistently identified as a problem in terms of lack of transparency and ease of consumer choice, even if offering considerable benefits in terms of competitiveness and growth. The policy focus on the IEM reflects the strength of the EU’s mandate in internal market and consumer protection issues—while the Lisbon Treaty provides a comprehensive legal basis for EU energy policy action, the majority of initiatives and legislation have remained focused upon consumer rights and market liberalization, reflecting the early trajectory of the policy area.

The reliance upon IEM and consumer protection competence has produced an ongoing theme of energy as a public service, which runs throughout EU energy policy and is a key part of energy vulnerability policy. The TEP contains provisions on public service requirements—these capture the idea that energy is a vital public service and should strive for the highest standards of provision. Although these requirements are meant to be established at the national level, the EU advises that they

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