Show me the money – will consumers pay more or less for electricity? | Monika de Volder on Net Zero

What impact will the energy transition have on electricity prices for consumer? Monika de Volder, Senior Economic Officer at BEUC – The European Consumers Organisation, discusses with Joana Freitas, Ambassador for the FSR Lights on Women initiative, the expected impact of increased renewables and consumer-oriented services in the retail electricity prices. Monika de Volder starts by noting that, against public expectations, electricity prices for households have been increasing over the last ten years – “We see more and more liberalization, which we would expect to result in more competition and better services and lower prices for consumers. Yet we don’t see that in every country”. In fact, renewables are very often blamed for increasing electricity prices. However, as Monika de Volder refers, renewables are the best alternative to reduce the dependence on fossil fuels. In the future, the introduction of new demand response services might allow consumers to capture the positive effect of the lower marginal cost of renewables. “Consumers will participate [in the electricity market], but it needs to be financially worth it without any trade offs for them”, Monika de Volder says. On the other hand, the digitalization of the electricity sector may also bring benefits for consumers. Monika de Volder describes it as a “game changer”, as it will lead to a much more efficient and reliable system. While the electricity system is going through a deep transformation,“energy poor or vulnerable consumers are one of the highest challenges we are facing today”.

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