RetailMarket andconsumer Switchingin TurkishElectricityMarket

Transcription

1 RetailMarket andconsumer Switchingin TurkishElectricityMarket Dr. Mustafa GOZEN Head of Group for Market Monitoring and Legislation Head of Group for Unlicensed Generation ERRA Virtual Joint Committee Meeting, January 31, 2017

2 Presentation plan Introduction Fundamentals of electricity market Distribution of meter points Consumer switching Electricity retail market First results of a questionnaire Current challenges Concluding remarks

3 Primary and secondary legislation Electricity Market Law No (2013) Electricity Market Law No (2001) Renewable Promotion Law No (2005) Amendedin by-laws and communiques

4 Electricity market by figures Basic Statistical Information Installed capacity 78.5 GW (December 2016) Generation TWh (2015) Consumption TWh (2015) Export 3.2 TWh (2015) Import 7.4 TWh (2015) Demand 5.5 % perannum Introduction of additional capacity of average MW per year 4

5 Electricity market fundamentals Eligible consumers: Consumers with a higher consumption than the eligible consumer limit Non eligible consumers: They can only purchase eklectricity from regional assigned suppliers legally unbundled from distribution companies at national uniform tariffs Network access: Regulated third party access Wholesale market Design: Bilateral contracts market complemented by day-ahead market, intra-day market, and residual balancing market Tariff: Network tariffs and sales to captive customers as well as tariffs for last resort customers are regulated. Licensing: All market activities must be licensed by EMRA with some exemptions. RES support mechanism: Feed in tariffs depending on technology. Also an extra premium for the use of local equipment.

6 Trade opportunities for generators Dağıtım Tarifesi A (licensed) Dağıtım Exempted Tarifesi generation ( 1 MW) Market Operator Local Retailer Renewable Support Mechanism Dağıtım Tarifesi B (licensed) Eligible costumers Suppliers Dağıtım Tarifesi C (licensed) Day Ahead/ Intra Day/ BalancingPower Market Dağıtım Tarifesi D (licensed) Cross bordertradeviacao to South East European countries 6

7 Electricity market players Market players 1 Transmission company(teiaş) state owned 21 Distribution companies operated by private sector 738 Private generation companies, 4 state owned companies 193 Private suppliers, 1 state owned wholesaler(tetaş) 21 Assigned suppliers with duty of last resort operated by private sector EPİAŞ energyexchangecompany market operator. TSO 30%, ISE 30% and market participants 40% 7

8 Eligibility limit and market opening Theeligibilitylimitwasreducedto2.400kWhfor2017byEMRABoarddecision. EMRA Board will decide in December 2017 to further reduce the eligibity limit. Year Eligible consumer limit (kwh) Theoretical market opening(%) Eligible consumer limit (kwh) Theoretical market opening (%)

9 Consumption (%) 30% 25% 20% Distribution of meter points (1/2) 24,0% 26,6% 19,1% 15% 12,3% 11,8% 10% 6,1% 5% 0% Consumption (kwh) Above 3600 Meters (Number) 10,1 milion 6 million 7,1 million 5,6 million 3,2 million 1,6 million 3,6 million 1,6 million % 4,8 4,8 million % 14,2 10,4 million % 31 17,5 million % 52,1 23,5 million % 69, kwh the number of meters 3,6 million As of November 30, 2016, number of meters ,6 million % 100

10 Distribution of meter points (2/2) Total number of meters Total number of meters above kwh Total number of meters below kwh Total number of meters above kwh 37,2 million 3,6 million 33,6 million 8,4 million Total number of eligible meters above kwh (End of November 2016) Percentage of meters using eligibility rights(nov.30, 2016) 71,5 %

11 Deficiencies in the retail market (1/3) The majority of problems encountered in the electricity retail market are based on information deficiency Lack of information about the functioning of new electricity market structure Unawareness of consumer rights Not being aware of articles of bilateral agreements Lack of information about invoice amounts& contents Unawareofthetariffs

12 Deficiencies in the retail market (2/3) The problems encountered due to suppliers Providing not enough information to small consumers and households Deception Providing incomplete information Wrong or deliberate orientation of the consumer Aggressive attitude to enter and remain in the market Remotely misdirection of consumers by phone calls Suppliers aggressive efforts to include consumers in own portfolio Lack of notification, not sending mails regarding invoicing or the last date of bilateral agreements Sending invoices despite the termination of the bilateral agreement Non-compliant behavior of suppliers

13 Deficiencies in the retail market (3/3) Other deficiencies encountered in the retail market Invoicing belonging to previous and later suppliers Incompatibility between invoiced and read amounts Late notification of invoices The uncertainty of where the amountof invoicewillbepaid

14 First results from a survey (1/3) A questionnairewaspreparedbyan assistantenergyexpertin our organisation. The questionnaire was part of a thesis in requirement for becoming energy expert. The number of individuals filling the questionnaire is of individuals have the qualities of being eligible consumers.

15 First results from a survey (2/3) As a result of the survey, 71,6% of the respondentsagedbetween18 and44 are more active in changing suppliers. Agedbetween18 and24 2 % Agedbetween25 and34 29,1 % Agedbetween34 and44 40,4 % 70,2% of the consumers who change suppliers are graduates of higher education 2 years of higher education 12,8 % Bachelor degree 48,9 % Masters degree 8,5 % 46.9% of the consumers who did not change their suppliers were not graduated from higher education Primaryschool 10,5% Middle school/ high school 36,4%

16 First results from a survey (3/3) Main reasons for changing suppliers Finding cheaper tariffs, for economical reasons 77% Consideration of getting more satisfactory services 15% Encouraging electricity generation from renewables 8 %

17 Current challenges in Turkish electricity retail market Feed in tariff in US cents per kwh regulated in the renewable support law no Increaseinexchangeratefromastablerateupto3,9TL/USD Almost all renewable based power plants prefer to participate in the renewable support mechanism. The total amount of renewable support mechanism is collected by the market operator (EPIAS) from suppliers active in the market in proportion to their market shares. High cost burden of renewable support mechanism on suppliers Suppliers have difficulty in submitting offers to eligible consumers and other suppliers to sign bilateral agreements.

18 Competition issues in the retail market Increasing competition culture Consumers understand that electricity is not a homogeneous product in terms of different time periods A continuous cooperation and coordination mechanism between the energy regulator and competition institution

19 Things done in the retail market Free consumer portfolio by EPIAS, market operator EPIAS: e-state password e-state: mobile signature, electronic signature or personal internet banking account information Tariff calculator in EMRA s internet site to make a comparison Speech of top management for informing consumers in the media/ television A special section in EMRA s website, questions and answers about consumer related issues

20 Things done in the retail market

21 Things done in the retail market

22 Things done in the retail market WhatcanIlearnasafreeconsumer? Eligible consumers Consumption data Meter reading dates Information about suppliers Information on whether the right to select suppliers is currently being used

23 Thingstobe done toovercome deficiencies in the retail market Close supervision of suppliers Improving awareness of consumers Completing necessary infrastructure to fast track complaints Launching public spots in television channels and internet sites Standardization and publication of type bilateral agreements for consumers Preparing questionnaires on consumer satisfaction and behavior and publishing the results on internet sites

24 Concluding remarks Turkish energy regulator gives high priority to consumers related issues. Switching ratio currently not calculated on a periodical basis and shared with stakeholders, but works are going on. Close monitoring of supplier and quick handling of complaints are a key issue.

25 Thank you for your attention! Dr. Mustafa GOZEN Energy Market Regulatory Authority of Turkey Phone: 0090 (312)