Energy Billing in Med Countries
Energy Billing in Med Countries
Energy Billing in Med Countries
Table of Contents
1. Introduction
3. Summary
4. Recommendations
1. Introduction
In all Mediterranean countries1 a legislation exists concerning customer protection in the
energy markets. In addition, all countries have legislation defining the conditions for ac-
cess and connection to networks and procedures for setting connection costs. Finally,
most of those countries present specific legislation regarding the energy quality of service,
and a conflict resolution procedure as well.
As a following step, customers should be allowed the possibility to choose the most con-
venient supplier, without suffering deprivation to their right of access to energy. This se-
cond phase has yet to be implemented in various Mediterranean countries. However,
MEDREG is constantly working to provide Mediterranean energy regulators with tools to
evaluate the condition of consumers in their countries and improve quality of choice and
flexibility, in particular when designing end-user tariffs.
In 2013, the Consumer Issues Working Group of MEDREG (CUS TF) focused its activities
on two issues:
1. Energy billing in Mediterranean countries, end
2. Education and information to final consumers in the energy markets.
This report is focused on energy billing methodologies that are currently applied in
MEDREG countries. We focused on energy bills because they are the leading instrument
for information to final customers and for communication between the supplier and the
customer itself. The bill is the main instrument for helping the final user to properly use en-
ergy, to understand what he is paying for, to be informed about his rights and duties.
We researched the billing structure concerning electricity and gas households consumers.
The scope of the survey was to assess the level of detail and completeness reached by
bills in MEDREG countries, and subsequently identify and discuss the criticalities and
good strategies which characterize the Mediterranean reasons, issuing targeted recom-
mendations.
16 Mediterranean countries supplied information on electricity billing regulation and proce-
dures: Algeria, Bosnia and Herzegovina, Croatia, Cyprus, Egypt, France, Greece, Israel,
Italy, Jordan, Malta, Palestine, Portugal, Spain, Tunisia and Turkey. The section of the
questionnaire concerning gas was completed by 10 MEDREG countries: Algeria, Bosnia
and Herzegovina, Croatia, France, Greece, Italy, Portugal, Spain, Tunisia and Turkey.
Some countries do not have a gas network or have not established a regulatory authority
for gas.
Answers were provided by national regulatory authorities, with the exception of Tunisia,
where the Ministry holds full competencies for electricity and gas.
The structure of the questionnaire that was used to produce this report is largely based on
models previously used for similar CEER and ECRB surveys, and adapted to the situation
existing in Mediterranean countries. Questionnaires were filled at the beginning of 2013.
1
“Survey on Consumer Protection in the Electricity and Natural Gas Sectors in the Mediterranean Region”,
MEDREG, October 2010.
MEDREG is supported by the European Union 5/41
Doc Med13-15GA-5.4
Results from the questionnaires will be presented in this report focusing on five topics
identified as:
Customers and suppliers;
Information provided by the bill;
Other information and choices available to the customer;
Other services and measurement units; and
Rules development and requirements.
Algeria, Bosnia and Herzegovina, Croatia (only for the electricity market), Greece, Israel
(were also some small local co-operative producers operate), Jordan and Palestine, all
show a number of suppliers varying from two to eight for both markets.
Only Cyprus has one supplier for both markets while Malta is the sole country with no sup-
pliers with the requested characteristics.
Reference
What information can be
number – Reference number -
found in general on the Supplier’s Customer’s Supply
Billing address Customer Number of
bill for identification da- details name address
account ref. metering point
ta?
number
Algeria √ √ √ √ √ x
Bosnia and Herzegovina √ √ √ √ √ √
Table 1 (continued)
What information
can be found in gen- Reference
Reference Date of due
eral on the bill for number - Type Date of issue Billing period Other
number payment
identification data? of meter
(Continued)
Algeria x √ √ √ √ √
Bosnia and Herze- √Only for GAS x √ √ √ √ Only for ELE
govina
Croatia x x √ √ √ x
Cyprus √ x √ √ √ √
Egypt x x √ √ √ x
France √ √ √ √ √ √
Greece x x √ √ √ x
Israel √ x √ √ √ x
Italy √ x √ √ √ √
Jordan √ x √ √ √ x
Malta x √ √ √ √ x
Palestine x √ √ √ √ x
Portugal x x √ √ √ x
Spain √ x √ √ √ √
Tunisia √ x √ √ √ x
Turkey √ Only for ELE x √ √ √ x
With regard to the electricity bills (Table 3), all countries, exception made for Egypt, show
in their bills synthetic information on the variable energy charge based on the energy con-
sumed in high tariff and low tariff. In Egypt the variable charge is based on a single tariff.
This latter information, though, is very frequent also in other countries (11/16). Further-
more, many countries (10/16) present in their bills a capacity charge depending on the
connection capacity. Fuel mix and capacity charge not depending on consumed energy or
capacity are information provided only occasionally, respectively in 6 and in 7 (out of 16)
countries.
Table 3: Information on the bill for price and data (electricity market)
Algeria x √ √ √ x
Bosnia and Herzegovina x √ √ √ x
Croatia x x √ √ x
Cyprus x x √ x x
Egypt x x x √ x
France √ √ √ √ x
Greece √ √ √ x √
Israel √ x √ x √
Italy √ √ √ √ √
Jordan x √ √ √ √
Malta x √ √ x √
Palestine x x √ x x
Portugal √ √ √ √ √
Spain √ √ √ √ x
Tunisia x √ √ √ √
Turkey x x √ √ x
With regard to answers concerning both the electricity and gas markets (Table 4), all coun-
tries show, total consumption and payable amount in their bills. The only exception, with
for payable amount, is Egypt. Benefits and subsidies are rather uncommon (8/16 countries
for energy markets; 3/8 for gas markets). Other information on payable amount is infre-
quent as well and generally refers to payable amounts due to any other service supplied or
to refunds and penalties.
The provided breakdowns predominantly regard energy and taxes (respectively present in
11 and 10 out of the 16 energy markets and in 8 and 7 out of the 10 gas markets). Break-
downs of network charge, supply service, levies or regarding other aspects are information
only sporadically shown in the examined countries‟ bills.
Meter reading
What information can be found Actual meter
Estimated date (if not actual,
in general on the bill for meter- reading and
amount billed last meter reading
ing related data? amount billed
date)
CHP, petroleum and other. In Spain and Greece only information about contribution of
RES-E is provided.
In Turkey the fuel mix does not appear on the bill, but suppliers have to announce the
share of RES-E on their company web sites.
In summary, usually the gas and the electricity bills do not contain information about po-
tential savings or increased costs of supply. Tunisia is the only country that provides this
information in both electricity and gas bills; Italy and Portugal only in electricity bills and
Spain only in gas bills. Spain suggests to add a link to the CNE Price Comparison Tool
while Portugal thinks this aspect deserves more importance
As for the gas market (Table 7), the most frequent issue, present in 5 out of the 10 consid-
ered gas markets is consumption evolution. Information about this issue can be found in:
France, Italy, Portugal, Spain and Tunisia. Saving energy information can only be found in
three countries: Portugal, Spain and Tunisia. Quality standards information is present in
Italy, while switching information is provided in Spain.
Table 7: Information about: quality standards, saving energy, consumption evolu-
tion, switching information
Italy some pages of information to the customer are usually added to the bill. One page bill
is provided in Egypt, Jordan, Palestine for electricity, in Croatia for gas.
ELE GAS
Algeria √ √
Bosnia and Herzegovina √ √
Croatia x x
Cyprus √ x
Egypt √ x
France √ √
Greece √ √
Israel √ x
Italy √ √
Jordan √ x
Malta √ x
Palestine √ x
Portugal √ √
Spain √ √
Tunisia √ √
Turkey √ √
the available methods of payment are disclosed on the contractual terms, but also on the
websites of the suppliers and the bill of the Supplier of Last Resort contains several op-
tions about payment methods, while in Tunisia customers can check the supplier‟s web-
site.
In the gas market, the way customers are informed are usually the same as for the elec-
tricity market. That is: Algeria, France, Italy and Turkey customers are informed by the bill;
in Portugal and Spain by the contract and in Tunisia by the supplier‟s website.
The timing of the information about price changes differs according to the investigated
countries:
in Bosnia and Herzegovina one of two entity regulators (Regulatory Commission for
Energy of Republika Srpska-RERS) informs about price changes minimum 15 days
in advance, while in the other entity of BIH (Federation of BIH) the utility company
informs customers about price changes upon FERK‟s (Regulatory Commission for
Electricity in Federation of BIH) decision approving a new price;
in Croatia this information is provided before the change is applied;
in Cyprus customers are informed through the current bill;
in Egypt customers are informed a few days before the price change;
in France this information is provided no later than one month before the price
change through a letter or via web;
in Israel price changes are notified through the bill and the web;
in Italy customers should have time enough to choose a different contract/supplier
in case they do not accept the price change unilaterally proposed by the supplier,
so that information are due no later than 6 months before the change in case of uni-
lateral modification of price conditions or any other contractual clause, but there are
no requirements for indexed price periodic updating;
in Jordan customers are informed “ahead” of price changes by the media and by
the bill;
in Palestine every time there is any update on tariff, consumers are informed
through advertisements at local newspapers;
In particular, electricity consumers are informed about their rights to complain in the follow-
ing ways:
by the bill in Bosnia and Herzegovina, France, Greece, Israel, Italy, Jordan, Malta
and Turkey;
by promotional materials in Cyprus, Egypt, Jordan, Palestine and Portugal;
by other means in Algeria, Bosnia and Herzegovina, Egypt, Italy, Palestine and
Spain.
Gas consumers are informed:
by the bill in Bosnia and Herzegovina, Croatia, France, Italy, Spain and Turkey;
by promotional materials in Portugal;
by other means in Algeria, Bosnia and Herzegovina, Greece, Italy, Portugal and
Spain.
Algeria √ √
Bosnia and Herzegovina √ √
Croatia √ √
Cyprus x x
Egypt x
France √ √
Greece √ √
Israel √
Italy √ √
Jordan √
Malta x
Palestine x
Portugal √ √
Spain √ √
Tunisia √ √
Turkey √ √
In case payable and metered quantities differ, the relevant ministry is asked to define a re-
calculation rule in France, Greece and Spain, to estimate billed consumption.
In Italy, Portugal and Turkey the national regulator is tasked with this responsibility. In
Bosnia and Herzegovina and Tunisia recalculation rules are established by the company.
In Algeria the difference cannot take place because the distributor is also the network op-
erator. In Croatia the correction factor for recalculation from m 3 to kWh, for standard condi-
tions and basic NCV, is defined by Art. 3. of the Ordinance on the Natural Gas Market Or-
ganisation (Official Gazette no. 126/10, 128/11, 88/12).
A graphic representation of the answers is provided in Figure 16.
As shown in Table 11, in France and Tunisia rules concerning the electricity network
charge are established by the ministry.
In Malta, the Distribution System Operator (DSO) is in charge of setting up network charge
rules but these have to be approved by the national regulator.
In most of the remaining countries (11) the national regulator is accountable for the defini-
tion of rules on network charges. In some cases (Croatia, Spain), the national regulator is
assisted by the ministry.
The same is true for the gas market, except for Bosnia and Herzegovina where, beside na-
tional regulator‟s activity, the industry is self regulated with regard to the network charge.
Self-regulation of
Who develops the rules related to bills
the industry
for household customers concerning National regulator Ministry other
(e.g.,code of con-
network charge?
duct)
Algeria √ √ x x x x x x
Bosnia and Herzegovina √ √ x x x √ x x
Croatia √ √ √ √ x x x x
Cyprus √ √ x x x x x x
Egypt x x x x x x x x
France x x √ √ x x x x
Greece √ x x x x x x x
Israel √ x x x x x x x
Italy √ √ x x x x x x
Jordan √ x x x x x x x
Malta x x x x x x √ x
Palestine √ x x x x x x x
Portugal x x x x x x √ √
Spain √ √ √ √ x x x x
Tunisia x x √ √ x x x x
Turkey √ √ x x x x x x
Self-regulation of
Who monitors the compliance National Customer the industry
Ministry other
with these rules? regulator organizations (e.g.,code of
conduct)
ELE GAS ELE GAS ELE GAS ELE GAS ELE GAS
Algeria √ √ √ √ x x √ √ x x
Bosnia and Herzegovina √ √ x √ x x x x x √
Croatia √ √ x √ x x x x x x
Cyprus √ √ x x x x x x x x
Egypt √ x √ x x x x x x x
France x x √ √ x x x x x x
Greece √ √ x x √ √ x x x
Israel √ x x x x x √ x x x
Italy √ √ x x x x x x x x
Jordan √ x x x x x x x x x
Malta √ x x x x x x x x x
Palestine √ x x x x x x x x x
Portugal √ √ x x √ √ x x x x
Spain √ √ x x x x x x x x
Tunisia x x √ √ x x x x x x
Turkey √ √ x x x x x x x x
past consumption patterns, presentation of energy mix, format of the summary, use of
boxes/frames, minimum character size, number of pages, comparability box and use of
colours.
Algeria, Bosnia and Herzegovina, Croatia, Cyprus, Egypt, France, Malta, Palestine, Tuni-
sia and Turkey (10 out of 16) have no minimum requirements with regard to all of the is-
sues in both markets.
Rules concerning the presentation of past consumption patterns are imposed in Israel and
in Spain with respect to both markets.
The methods used to present the energy mix is regulated in Greece, Italy (only for the
electric market), Portugal (both markets) and Spain (only electricity market).
The format of the summary section is specified only in Israel and Italy (for both markets).
The use of boxes/frames is requested only in Jordan. A minimum character size is re-
quested only in Spain.
Number of pages, comparability box and use of colors to clarify different sections find no
minimum requirements in the observed countries.
of Commerce and AEEG - (Italy); department of energy of the regions (Spain); ministry
(Tunisia).
In Bosnia and Herzegovina and France both DSOs and suppliers might be involved in dis-
pute settlement; in Jordan only suppliers while in Egypt only DSOs.
3. Summary
Almost 100% of household customers in Mediterranean countries receive energy bills for
both electricity and (where the network exists) gas. Bills always show the amount billed
and the actual meter reading.
In most of the cases (9 out of 13) customers are informed about possible payment options
by the bill. Customers in (almost) every analysed market are informed about the amount of
money they have not paid yet, about the procedure in case of non-payment and about
their rights to complain.
While economic figures and consumption data are obviously included in all energy bills,
different additional information are supplied in each Mediterranean country, according to
national legislation, regulation, and specific procedures. For instance, information on past
consumption and fuel mix and contribution of energy sources in the fuel mix is provided in
a minority of countries.
In all countries the customers receive one bill for both electricity/gas supplied and the net-
work use, this also happens in those countries where network operators and suppliers are
unbundled, so that the consumer can periodically receive unified information regarding
both network charges and energy consumption and expenditure.
In most investigated markets (9 out of 16 for electricity market and 5 out of 10 for gas mar-
ket) the bill is sent every two months to the household customers. Where the market is
competitive, the bill frequency is sometimes variable, and is agreed between the supplier
and the gas/electricity user.
The electricity bill in general consists of 2 pages (10 out of 16 cases). In 3 of the remaining
6 cases the bill consists of one single page and in 3 cases of 3 pages. Even the gas bill in
general consists of 2 pages (7 out of 10 cases). In 1 of the remaining 3 cases the bill con-
sists of one single page and in 2 cases of 3 pages. Additional pages can be added in
some countries to supply relevant information regarding potential energy savings, safety,
fuel mix, the existence of social tariffs (if any), consumer rights, quality of service, or other.
These information not necessarily are supplied in all bills, but in some cases once or twice
a year.
In the majority of cases actual and billed consumption can be compared, both for the elec-
tricity and gas markets.
For both electricity and gas markets generally the suppliers have choice about the degree
of detail, the form and the content of the bill, provided that some basic information have to
be included in the bill itself.
With regard to both the electricity and the gas market, almost every country indicate in
their bills either an emergency number or a queries hotline and its contact hours
A choice on payment methods is available in all investigated markets.
In some countries only, both for electricity and gas, bill indicate information about potential
energy savings (4 out of 16 cases and 2 over 10 respectively), while in almost every coun-
try customers are provided with information of changing rates/prices in advance, even if
with different timing according to national regulation or procedures.
The role of ministries and energy regulators related to developing the rules and monitoring
compliance on billing is dominant in the great part of the analysed markets; self-
established requirements or Code of conduct regarding bills play a secondary role in the
observed countries.
The energy regulator, in addition to regulate the minimum compulsory content on energy
bill and related information to the consumers, is also generally the institution in charge of
dispute settlement in this field.
As a conclusion, the energy bill is the basic information instrument regarding consumption,
expenditure, and payments, but is also used, even with different model according to na-
tional situations, to supply additional relevant information regarding energy use, consumer
rights, fuel mix, quality of service, and so on. For these second group of information, the
bill is not the only instrument of course, but is the most regular and familiar also for those
categories of consumers who has limited access to other sources of information on energy
issues.
4. Recommendations
Specific regulation for energy bills are welcome, in addition to national general laws and
rules on billing, because the energy bill is the only periodic communication to energy con-
sumers, who need to be informed on consumed energy, prices, payment instruments, reg-
ularity of payment, risk of disconnection, and other.
The energy bill must be transparent, accurate, readable, easily understandable for all cat-
egories of citizens. The right to understand prices and quantities paid is a basic right for
citizens, even with low educational levels, because energy can be a relevant share of their
monthly budget.
Regulation on energy billing can be non-homogeneous in different countries, according to
national or local situation in terms of energy mix, metering organization and functioning,
energy pricing procedures, competitivity of energy markets, and access to other infor-
mation instruments.
In all countries, the customer has to be properly informed on energy consumption and
costs, with adequate frequency and clarity, so that he can modify, when possible, his con-
sumption patterns or habits, including appliances or other. The bill is not the only instru-
ment to this purpose, but still remain the leading, because of its universality, periodicity,
and simplicity of access.
The energy bill has to be as simple and short as possible, but a trade-off exists between
simplicity/brevity and quantity of information. Balancing these two is the main focus of reg-
ulation, and solutions have to be adequate for national situations according to education,
structure of the energy market, availability of other information source to different groups of
consumers.
Separation of basic necessary information (prices, quantities, taxes, and payments) and
other information is welcome, so that the bill recipient will be able to choose his individually
requested degree of information. Rules for energy billing should facilitate comparability, i.
e. the possibility to understand if energy consumption and energy prices are changing
compared to the past.
Where supplier choice is an opportunity for household customers, the bill should also facili-
tate the opportunity to compare energy offers and provide adequate information to help the
decision to switch supplier.
Competition and innovation could modify or even improve the bill design, but the bill itself
remains the leading universal information tool in any case. The challenge for regulators is
to keep billing rules as stringent as necessary regarding the minimum information content,
but to leave the adequate level of flexibility to energy suppliers regarding the billing layout
and structure in all stages of both society and markets evolution.
Important information to final customers can be supplied through the bill, like past con-
sumption, contribution of energy sources to the fuel mix, energy savings opportunities,
technical information, instruments to assist vulnerable consumers, quality of service
standards and levels, complaints procedures. Regulation should take care that all these
information are delivered to consumers periodically, evaluating case by case the oppor-
tunity offered by the bill.
Future work on the improvement of billing practices is recommended.