Target Market Model -

louisianabodyElectronics - Devices

Nov 21, 2013 (3 years and 10 months ago)

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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


Customers


Increased competition


Offerings and products that meet their needs


Improved efficiency


Reasonable prices and lower costs



DSOs/TSOs


Improved efficiency, automated processes


Stable (regulatory) environment



Society


Increased competition and improved efficiency in all
levels


Environmental gains and savings



Suppliers


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
-
term
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
customers


With and without smart metering?


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


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
-
system?


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
always
contact the supplier


Strict
dual
point of
contact
model


Customer needs to be in contact with
both DSO and supplier


Leave
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


Supplier
centric model


Somewhere in between 1 and 2


Most issues handled by supplier


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


How should the customer
interface be organised?

1.
One common Nordic solution

2.
Each country choose their own solution

3.
Different solutions should be possible even
at national level


How to ensure customer
protection?


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
procedures


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
organised?

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
messages

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
formats

Bilateral communication


Actors are in contact
bilaterally


Same data exchange format

in use

in every
country


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


vision:


Possible for a supplier to sell to
the

whole Nordic
market

from
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)


Suggestions:


Harmonised balance agreements between the TSO’s and the
BRP’s.


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
metering


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
-
2030


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
issues


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
systems



Smart systems


Smart grid, houses, electric vehicles


Distributed generation


DSO as a market facilitator


Efficient market processes


Automation


Fast access to market data


Fast supplier switching


Low transaction costs


Low entry barrier


What implications will this
have
already
for
the 2015
Target Market Model
?

Discussion on the Target Market
Model:
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 (
eg
.
which options are possible/impossible)?