"Case Study Consumer issues EMRA 18 09 12"
Consumer Issues at Turkish Energy Market and Electricity Billing 18 September 2012- Rome Muhammed DEMIR Group Head Strategy Development Department email@example.com Outline Energy Market Regulatory Authority Consumer Issues at Turkish Energy Market Consumers at Turkish Electricity Market Billing of Electricity Contents of Electricity Bills Customer Services Centers 2 Energy Market Regulatory Authority (EPDK) EPDK is an autonomous institution regulating electricity, natural gas, petroleum and LPG markets. Aim of EPDK is to form financially sound and transparent energy market where ▪sufficient, ▪good quality, ▪consistent, ▪low cost and ▪environmentally friendly energy is delivered to consumers in a competitive environment under provisions of civil law. 3 Consumer Issues at Turkish Energy Market-1 Department of Sectoral Competition and Consumer Rights was established within EPDK to deal with consumer issues in 2002. Then, abovementioned Department was abolished in 2006 and consumer issues were given under the authority of Department of Relations with European Union and Sectoral Competition within EPDK. This Department was also abolished in 2008 and consumer issues have been handled by sector- specific departments i.e. Electricity/Natural Gas/Petroleum and LPG Market Departments since then. 4 Consumer Issues at Turkish Energy Market-2 Experiences of the abolished Departments; Coordination problems Repetitive Actions on the same issue Insufficient Authority delivered to Department Disproportion of Department Staff and number of consumer complaints i.e. inadequate personnel Aliağa Doğal Gaz Kombine Çevrim Santralı 5 Consumer Issues at Turkish Energy Market-3 New Organization (Consumer Rights and Services Group within Department of Strategy Development of EPDK) with the purposes of; Informing of consumers about their rights and market activities via customer services centers of Distribution/Supplier companies, websites of mentioned companies and website of EPDK, mass media and booklets… Effective handling of consumer complaints. Reporting to determine problem areas and to propose necessary regulations and/or amendments to existing rules and regulations. 6 Consumers at Turkish Electricity Market According to Electricity Market Law No.4628, consumer definition includes all eligible (free) or non-eligible (captive/subscribers) consumers, purchasing electricity for their own needs. For year 2012, eligible consumer threshold is 25.000 kWh/ year consumption. Aim is all consumers to become eligible consumers by 2015, without taking into account their yearly electricity consumption. 7 Consumers’ Purchase of Electricity There are two ways to purchase electricity; -For eligible consumers- bilateral contracts made between consumer and supplier (i.e. generation company, autoproducer, wholesale company and retail sale company) For subscribers- retail sale contract made between consumer and retail sale company. Terms and conditions of retail sale contracts and retail sale tariffs are determined by EPDK. 8 Billing of Electricity Consumed Apart from pre-paid meter use; -Procedures and principles related to consumption period, preparation of electricity bills and notice of electricity bills are determined according to provisions of retail sale contracts or bilateral contracts. -Difference between two consecutive consumption periods, i.e. Last meter reading minus previous meter reading, is accepted as electricity consumption of the consumer. -Electricity bills must be conveyed to consumer at least ten days before last payment date. 9 Elements Forming Electricity Bill-1 Name-Surname or business name, address, customer or subscriber number and type of subscription of consumer e.g. household, industry or other, Trade mark, type, serial number of meters, multiplier, if exists rate of current and/or voltage of substation, Last and previous indexes and related meter reading dates, Amount of electrical energy consumed, Energy and Capacity Information forming basis of consumption price, 10 Elements Forming Electricity Bill-2 Unit prices of electricity and payment amounts of consumption, Tax, legal obligations and debts, Last payment date and payment centers, In case meter is changed, consumption values of the same period, Telephone/fax number and Internet address of center of customer services, Average daily energy consumption, Meter reading of coming period, If exists, debts related with past periods. 11 Sample of Electricity Bills 12 Erroneous Billing Notices Misreading of meters, mis-application of tariffs and multiplier factors, mis-calculation of amount of consumption and payment or repetitive billing notices for the same period, Consumer has right to object to erroneous billing notices within a year beginning from billing notice date. Objection is evaluated and resulted within ten working days from application date and results of evaluation is conveyed to consumer in written form. If customer is right in objection over-paid amount is deducted from later bills or, if customer wants, returned to customer in cash within three working days. 14 Overdue Payments If consumer does not make payments on time, distribution company may disconnect the consumer from electricity system. In this case, overdue interest is also applied to payment amount commencing from last payment date. Debts arisen from electricity consumption of other consumers for the same site/address can not be demanded form new consumer. 15 Customer Services Center Distribution companies and retail sale companies are required to establish customer services centers working 24 hours to deal with breakdowns, complaints and notices for unlawful use of electrical energy. Contact information of customer services centers are taken place at electricity bills. Consumer complaints to customer services centers are concluded within 15 working days and, if complainants want so, transactions contemplated are noticed to complainants in written form. If there is a dispute between complainant and Distribution/retail sale companies on transactions contemplated by customer services center, complainants may apply to EPDK in case they claim transactions contemplated are against the laws and regulations. 15 Informing of Consumers and Compensation of Damages Caused Informing of consumers are managed via customer services centers customer services. EPDK also responds information requests coming from consumers and market participants. Compensation for losses and damages that may arise due to lack of quality and/or interruptions in power supply is addressed in the licenses and the contracts of the legal entities providing these services to consumers (Electricity Market Law No.4628, Article 13). Moreover Law on Protection of Consumers No. 4077 has detailed provisions on compensation of damages of household consumers caused by activities of suppliers. 16 Thank you… Muhammed Demir Group Head Strategy Development Department firstname.lastname@example.org