Right Energy Policies Could Save Citizens More Than 100 EUR A Year, Study Finds

Press Release

Putting the right European energy policies in place could reduce the average European citizen's electricity bill by more than 100 EUR (81 GBP) a year compared to business as usual, a study carried out by Accenture for European electricity industry association EURELECTRIC has found. The study was launched during EURELECTRIC's two-day Annual Convention, which began in London today. EURELECTRIC President Johannes Teyssen (CEO of E.ON) also used the opportunity to call for rebuilding trust among customers.

"Customers are at the heart of our business - an energy system that works in their interest is of fundamental interest to us as well. For most customers, this means keeping costs down. Companies interested in retaining customers naturally strive to be as cost-efficient as possible whilst offering new and smarter products and services. But national and European policymakers must also do their bit to prevent costs from spiralling out of control, in particular when designing policies with large financial impacts. EURELECTRIC today calls for a step change in European energy policy through an optimised approach that avoids unnecessary costs,"Mr Teyssen said.

According to the study, implementing an integrated set of levers could generate net savings of €27 to €81 billion (22 to 66 billion GBP) per year by 2030. This will require policymakers and the electricity industry to focus on sources of value in four key areas of the electricity value chain: optimising renewable energy systems, market integration, 'active system management', and demand response and energy saving.

Coordinated European renewable energy deployments, for instance, could significantly reduce costs by ensuring that new capacity is built in the optimal location. Similarly, EU-wide market integration and increased cross-border interconnection could limit the costs of managing increasingly variable supply, improve the functioning of the energy market, and better safeguard security of supply. Unlocking this value will, however, require concerted and coordinated efforts by policymakers at European and national level alike to ensure an integrated approach.

In line with this year's conference theme, Mr Teyssen also stressed the importance of transparency in increasing customers' trust in the energy system:"Trust cannot be achieved without transparency; they are two sides of the same coin. Customers need to know how different policy measures affect the price they pay for electricity. For instance, EURELECTRIC's analysis of power price drivers shows that recent price increases across Europe have largely been driven by national taxes and levies. Adopting clearer reporting rules in Europe would allow customers to better understand these developments."

Speaking at a joint press conference with EURELECTRIC Vice Presidents António Mexia (CEO of Energias de Portugal - EDP) and Henri Proglio (CEO of EDF), Mr Teyssen stressed the importance of ensuring that customers benefit from the shift taking place in European electricity systems today: to cleaner, smarter, more sustainable and decentralised electricity generation, distribution and supply.

"Energy companies are putting serious work into engaging more closely with their customers. Utilities across Europe are increasingly moving away from selling electricity to offering a range of diverse products and services, including distributed generation solutions, electro-mobility packages, energy audits, home automation, and smart home solutions. Policy and regulation should provide an enabling framework for this development to ensure that our companies can offer what our customers want,"Mr Teyssen concluded.

Press release available here.