You led the work behind Eurelectric’s new commitments to customers. Why was it important for the sector to update and reinforce its pledges to households at this particular time?
I would say that first and foremost, it is important to take the temperature of the market – or, even better, of the electricity customers. At the end of the day, customers are the ones who pay us, suppliers, and also, the entire electricity value chain, from commercial teams to generators, including distribution and transmission system operators. Our responsibility is to serve and satisfy them. Without understanding our consumers’ needs, we cannot design the entire electric system – and, of course, we cannot conceive supply offers that truly meet those needs.
Therefore, it is in Eurelectric’s DNA to regularly present a global overview of what customers – especially household customers – think. They are, after all, the democratic anchor of the European Union.
Our last set of 15 pledges was made before the energy crisis, and so many things have happened in recent years. It was absolutely necessary to ask consumers again where they stand today. Honestly, I was really wondering how their perception of the market and of suppliers had evolved. That’s why we collectively decided to collect comparable information, to be able to assess the situation both before and after the crisis. I hope we will be able to reiterate such a study in the future.
The COVID-19 pandemic, the war in Ukraine and following energy crisis have all put pressure on household energy use. The report shows that while customers took action to reduce consumption, deeper engagement with electrification has stalled. In your view, what are the main factors behind this gap—and how should utilities adapt their approach to support customers more effectively?
First, I would say that domestic customers do not engage less – or more – in electrification than any other customers. Then I can only think that reduction of demand is a good thing when it is the result of energy efficiency measures and of a better use of energy.
That said, it is nevertheless a pity to see an ongoing choice of fossil imported fuels while electricity producers offer more and more European decarbonised electricity. Is there a miracle solution to change that? Ideally, customers should actively want to shift to electricity, and the investment hurdle when choosing electric appliances over fossil-based ones must be overcome.
Let us now wait for the forthcoming Electrification Plan, announced by the Commission for Q4 2025. We need to remind people of all the advantages of electricity compared to fossil fuels – not only at the macro-economic level (decarbonisation, less energy imports) but also at micro-economic level (less pollution, less noise, and creation of jobs in Europe).
The report recognises different levels of consumer engagement in the energy transition—from fully engaged prosumers to constrained consumers. How important is it for utilities to offer tailored solutions, rather than one-size-fits-all approaches?
There are no two identical human beings, so there are no two identical domestic customers. The range is important – from a single mother living in social housing with her children, to a retired couple living in central Paris with a secondary home in Brittany, or from a poorer, isolated person in a remote rural area to an IT geek working for a startup.
They all have one thing in common, though: they are domestic customers of an electricity supplier. And they all need the best – which very often means the most affordable – electricity offer that fits their needs.
As suppliers, we collectively have a social and societal responsibility, to be innovative, to understand them, and to understand the way they want to consume electricity: which appliances they have, how they can be – or not be – flexible and so on…
This last point is particularly crucial in today’s evolving generation landscape, where intermittency is increasing. It is the responsibility of suppliers – and many have already started – to design a range of supply offers that can mobilise as much flexibility as possible from domestic customers. But there is one clear limit: the customer’s choice is the only judge.
One of the key findings is that cost remains the main barrier to further electrification at household level. How can the power sector – and policymakers – work together to lower this barrier while maintaining a stable and competitive market?
Indeed, the cost barrier is the number one lesson from this survey – and answering it is the key challenge for all actors involved in the EU’s decarbonisation, not only suppliers but the entire electricity value chain.
It is a challenge for all of us to make electricity as affordable as we can from generators to retailers, including TSOs and DSOs. It is also of the responsibility of policy makers to choose an efficient decarbonisation pathway – through electrification – with an adapted regulation that allows to meet simultaneously climate and affordability goals.
In the present situation, domestic customers are expected to shift to electric cars, install heat pumps, and insulate their homes – all at once. Of course, there is no doubt that all of that must be done, but a correct framework must be reinforced, especially to spread the significant upfront costs over time. At the same time, direct advantages for the owner of electric appliances must be advertised: for example, less noise or less pollution.
Looking ahead, what is your biggest hope—and your biggest concern—when it comes to consumer participation in the energy transition over the next five years
My biggest concern? That domestic consumers, as citizens, may lack the will or financial capacity to realise the energy transition through electrification.
My biggest hope? That citizens’ growing awareness of the need for decarbonisation, reduced pollution, a quitter environment, the importance of a homegrown electricity, and ultimately a fair cost, will convince them that electricity is the desirable energy.