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How customers benefit from information on the source of their electricity – The case of Flanders How is disclosure regulated in Flanders? Using the ‘Groencheck’ to inform and empower customers Katrien Verwimp 20-03-2013

VREG Greencheck as instrument for disclosure in Flanders

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Presentation made by Katrien Verwimp at the RECS Market Meeting 2013 in Berlin. Presenting the Greencheck (Groencheck) an innovative instrument of VREG - Flemish Electricity and Gas Regulator for disclosure. Disclosure is providing information to electricity customers on origins of their electricity supply

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Page 1: VREG Greencheck as instrument for disclosure in Flanders

How customers benefit from information on the source of their electricity – The case of Flanders• How is disclosure regulated in Flanders?• Using the ‘Groencheck’

to inform and empower customers

Katrien Verwimp 20-03-2013

Page 2: VREG Greencheck as instrument for disclosure in Flanders

Belgium federal state

• 3 regions: Flanders, Wallonia, Brussels• 4 Energy regulators:

• Federal level: CREG• Regional level: VREG, CWaPE, Brugel

• Responsabilities divided between policy levels• Federal responsabilities• Regional responsabilities

• RES-E (support systems, GO’s, …)• Disclosure

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Page 3: VREG Greencheck as instrument for disclosure in Flanders

Disclosure in Flanders

Disclosure of the origin of the electricity supplied in previous year:

• yearly VREG report and on the suppliers’ invoices• RES-E and CHP only allowed when proven by GO’s• Fossil and nuclear: proven by corrected production

data• Remaining fossil and nuclear is exported to the RE-

DISS residual mix• RES-E: monthly GO cancelation => ‘Greencheck’

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Page 4: VREG Greencheck as instrument for disclosure in Flanders

Import of Guarantees of Origin • Flanders is a net GO importer• GO import raises the RES-E consumption in

Flanders from 11,5% to 52 % (2012)• Extra stimulus by partial tax exemption for RES-E

consumption• Up and untill 2012• Fallen away starting from 1/1/2013 (R.Decree

27/12/2012)

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Page 5: VREG Greencheck as instrument for disclosure in Flanders

Origin of GO’s cancelled for 2012 supply

VREG • VLAAMSE REGULATOR VAN DE ELEKRICITEITS- EN GASMARKT P • 5

Geografical origin

Technological origin

Page 6: VREG Greencheck as instrument for disclosure in Flanders

Why expand the RES-E disclosure systemGreen electricity products are popular1.Individuals wonder: how is individual RES-E consumption proven?2.Public debate on the origin of the RES-E products• Domestic vs. foreign RES-E• Type of energy source

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Page 7: VREG Greencheck as instrument for disclosure in Flanders

Proof of individual RES-E consumption• Risk of double disclosure, based on the same GO

• Not at registry level• Theoretical example of double disclosure:

• Supplier offers 1 ‘grey’ and 1 ‘green’ electricity product• Assumption: All his consumers have the same

consumption• He tells 90% of his customers they receive a full RES-E

product• He tells the regulator that only 10% of his customers use

RES-E, and cancels only GO’s for this amount• =>The same GO has been double-disclosed 9x

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Page 8: VREG Greencheck as instrument for disclosure in Flanders

Avoid double disclosure

• Link GO cancelation to individual consumers1. Option of consumer account in GO registry

• Consumer can check himself the amount of GO’s cancelled for his consumption

• With large number of residential RES-E consumers: Many accounts = Huge contact management

1. Option of linking individual consumption data from Grid Operators to GO cancelation• Works for all consumers• Demands coöperation of all DSO’s

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VREG

Page 9: VREG Greencheck as instrument for disclosure in Flanders

Monthly ‘GreenCheck’ for RES-E consumers

• Based on individual acces point and consumption• Reporting mechanism with cooperation of Suppliers

and Grid operators• Monthly cancelation of GO’s by the green electricity

suppliers for their customers• On VREG website: every customer can verify if the

individually consumed RES-E was proven to be RES-based through GO cancelation by the supplier, using his individual EAN code

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Page 10: VREG Greencheck as instrument for disclosure in Flanders

Snapshot Groencheck

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Page 11: VREG Greencheck as instrument for disclosure in Flanders

VREG • VLAAMSE REGULATOR VAN DE ELEKRICITEITS- EN GASMARKT P • 11

XXXXXXXXXXXX

Page 12: VREG Greencheck as instrument for disclosure in Flanders

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XXXXXXXXXXXX

Page 13: VREG Greencheck as instrument for disclosure in Flanders

How does it work?Monthly ‘Green reporting procedure’ (1/4)

• Electricity suppliers• Report a list of all acces point EANcodes of their RES-E

consumers of the past month of supply N• Including the %RES-E and the Grid Operator GLN code• By the 3rd working day of the month N+1

• VREG • Recombines the lists of all suppliers to lists of RES-E

consumers per Grid Operator• Sends these lists to the Grid Operators

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Page 14: VREG Greencheck as instrument for disclosure in Flanders

Monthly Green reporting procedure (2/4)

• Grid Operators:• Receive the list of all RES-E consumers (on working day 4 of month

N+1)

• Add to every consumer the individual consumption of the past month N

• Send the completed list back to VREG (by working day 12 of month N+1)

• VREG• Calculates the amount of RES-E supplied per supplier in MWh • =amount of GO’s to cancel per supplier• Alerts all suppliers of their amount of GO’s to cancel 14

Page 15: VREG Greencheck as instrument for disclosure in Flanders

Monthly Green reporting procedure (3/4)

• Suppliers• Cancel their ‘quotum’ of GO’s (within 10 working days)

• VREG• Checks whether suppliers did cancel enough GO’s to

proof their promised RES-E supply• This % of compliance is added in the webtool• This webtool is linked to the database of all reported RES-

E consumers for that month N

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Page 16: VREG Greencheck as instrument for disclosure in Flanders

Monthly Green reporting procedure (4/4)

• Consumer• Fill in the EANcode of his acces point at

www.vreg.be/groencheck • Get to see the % of RES-E in his consumption that was

proven to VREG by GO cancelation by his supplier• = For the past 12 months

• Procedure: BESL-2011-7

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Page 17: VREG Greencheck as instrument for disclosure in Flanders

Benefits of this procedure

• Consumers information• = key element in liberalized market

• Random inspection of suppliers proportions of GO cancelation

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Page 18: VREG Greencheck as instrument for disclosure in Flanders

Why expand the RES-E disclosure systemGreen electricity products are popular1.Individuals wonder: how is individual RES-E consumption proven?2.Public debate on the origin of the RES-E products• Domestic vs. foreign RES-E• Type of energy source

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Page 19: VREG Greencheck as instrument for disclosure in Flanders

Next step: expand the ‘Greencheck’Answer to the public debate concerning the origin of the RES-E products• Domestic vs. foreign RES-E• Type of energy source

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Page 20: VREG Greencheck as instrument for disclosure in Flanders

Info on the origin of the RES-E products

• Information added in Disclosure report of 2012, per supplier:

• Plan: integrate this information in the ‘Greencheck’, per electricity product

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Country of origin Renewable Energy Source

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Thank you for your attention!• Contact data:

Katrien VerwimpMail: [email protected]: 0032 2 5531377

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