Target Market Model -

louisianabodyElectronics - Devices

Nov 21, 2013 (4 years and 7 months ago)


Target Market Model

Starting point for the future work

Antti Paananen

Chair of NordREG WG Retail and Distribution

Workshop with stakeholders

January 27, 2010 in Stockholm, Arlanda

Content of presentation

Expectations for the common Nordic end user market

How to create common Nordic end user market

General objectives

Customer interface

Customer protection

Data exchange

Balancing issues

Future development

Discussion on the Target Market Model

Expectations for the common
Nordic end user market

Common Nordic end user market should bring added value to all
stakeholder groups

Preferences might be different between the stakeholders


Increased competition

Offerings and products that meet their needs

Improved efficiency

Reasonable prices and lower costs


Improved efficiency, automated processes

Stable (regulatory) environment


Increased competition and improved efficiency in all

Environmental gains and savings


Easier to enter new market areas, larger markets

Improved efficiency, economy of scale

Stable (regulatory) environment

Connection between wholesale and retail markets

How to create common Nordic
end user market?

Stepwise approach: define short (by 2015) and longer
target market models

Target market models should include definitions of

General requirements and frames for the common
Nordic retail market

How the target market would look like from different
perspectives (customers, suppliers, DSOs/TSOs etc)

Roles and responsibilities of different market actors

Define adequate / efficient level of market harmonisation to
meet the target market model

The way forward

Objective: “To minimize the regulatory and technical
obstacles for the suppliers willing to operate in the
various Nordic countries”

The market model should be harmonized enough to make it smooth,
feasible and attractive for the suppliers to start operating also in other
Nordic countries

The common market model would provide a harmonized framework for
the suppliers to make business in the whole Nordic region

In that way all end
users are eligible to take part in the Nordic
electricity market

General frames for the common
Nordic end user market

The common Nordic end
user market should be open for all

With and without smart metering?

It shall be safe for the customers to buy electricity from any

Customer protection shall be ensured

It should be possible and easy for suppliers to operate in all
Nordic countries

From one place (from one legal entity)?

With one IT

Are there any other general requirements?

How should the Target Market Model
appear from a customer angle?

Is it possible to have different solutions for the customer interface and
still reach a harmonized market?

Strict single point of
contact model

The customer
contact the supplier

point of

Customer needs to be in contact with
both DSO and supplier

it all to the market

The market actors decide how to organise
the customer interface. Means that the
customer is in contact with supplier and/or
supplier depending on what individual
companies have agreed on

centric model

Somewhere in between 1 and 2

Most issues handled by supplier

New connection, interruptions and other
strictly network related issues handled by
DSO > which issues belongs to DSO?

How should the customer
interface be organised?

One common Nordic solution

Each country choose their own solution

Different solutions should be possible even
at national level

How to ensure customer

Dispute settlement

The Nordic countries have already well
functioning processes for dispute
settlement in each country.

Customers should be protected by fair and efficient national dispute
settlement rules stemming from their home country.

Complaint handling procedures

Harmonised minimum standards should be developed and followed by all
companies participating on the Nordic end user market.

All customers should enjoy a high service regarding complaint handling

regardless of country of residence.

Common standards brings transparency and gives customers confidence
in a Nordic end user market.

Important for the well
functioning of the
Nordic end user market.

Are there any other issues?

How the data exchange should be

National hubs

All information exchange within one country
via one hub

Common Nordic format not required

Actors are in contact with their national hub

National hubs discussing between countries

National hubs are able to translate

One Nordic hub

All information exchange in Nordic area via
one hub

Common data format in every country or hub
understands and translates different data

Bilateral communication

Actors are in contact

Same data exchange format

in use

in every

National/Nordic database

All necessary information are

stored in a
database nationally/in Nordic level

Actors ar
e in contact with the database(s)

Data exchange between actor and database

How the balancing issues could
be handled (1/2)

Regulation power

(power balance) between the Nordic countries

NOIS list.

Common balance settlement


Possible for a supplier to sell to

whole Nordic

one legal entity and using one system for customer
management and reporting.

Must facilitate a well functioning market

e.g. making it
attractive even for smaller suppliers and some end
users to be
a balance responsible party. (BRP)


Harmonised balance agreements between the TSO’s and the

The Nordic TSO’s should develop a common standardised
balance agreement template.

How the balancing issues could
be handled (2/2)

Balance settlement

utilising smart metering

Smart meters imposes a possibility for hourly measurement.

Smart meters should be used for balance settlement in an efficient way.

Load profiling

More standardised systems for load profiling

Consistent systems should be developed and linked to the deployment of smart

Decreasing share of customers with load profiling?

This does not necessarily call for total harmonisation of load profiling systems?

Balance settlement process

Need for harmonising the most important issues regarding the balance
settlement processes

What are these issues?

How to take into account the
future development?

Long term target model 2020

Continued development of the Nordic retail market

The level of market integration and development in
2015 determines the future possibilities

Issues that should be considered:

Climate, EU, politics, technology, metering

Future issues

Smart metering

Harmonised level of smart metering?

More advanced products

More, better information

No load profiling

Third party access to data, meters, metering

Smart systems

Smart grid, houses, electric vehicles

Distributed generation

DSO as a market facilitator

Efficient market processes


Fast access to market data

Fast supplier switching

Low transaction costs

Low entry barrier

What implications will this
the 2015
Target Market Model

Discussion on the Target Market
some questions to start with

Are there any other issues that the description of Target
Market Model should cover?

Are there any other aspects that should be taken into
account with the Target Market Model?

What do you expect from the common Nordic end user
market by 2015 and later?

What are your views on the above mentioned issues (
which options are possible/impossible)?