Electricity labelling in the EU

Panel: Panel 1. Energy efficiency – a strategic choice for Europe

Author:
Kevin Lane, Environmental Change Institute

Abstract

Liberalisation is sweeping across Europe and giving consumers the right to choose their electricity supplier. This choice is usually based on price, but a new initiative – disclosure – would enable people to decide using environmental criteria. Under the current draft revision to The Electricity Directive, the minimum disclosed information would be based on the fuel mix used to generate electricity, which could be supplemented by information on carbon dioxide emissions and nuclear waste. An EU Commission funded project is examining the options to introduce disclosure for European consumers (Consumer Choice and Carbon Consciousness for Electricity, 4C Electricity, www.electricitylabels.com).

The 4C Electricity project is:

Evaluating the practicalities involved in developing an EU-wide label for disclosing the source of each consumer’s electricity.
Undertaking focus groups and interviews to identify consumer needs and understanding, to aid the design of the information label.
Recommending how disclosure could be implemented, especially in relation to subsidiarity issues, and how it will be integrated with other EU and Member State energy policy.
Finally, policies which support disclosure and make use of disclosure will be examined, and the likely impact of these will be explored through scenario analyses.

This paper will outline the issues involved in labelling electricity and provide a review of this on-going project. The design of the label and its content is likely to combine mandatory core elements with those subject to subsidiarity. The success of disclosure will depend on decisions in 15 Parliaments as much as in Brussels.