EU moves to ease energy consumer concerns

(BRUSSELS) - The European Commission launched Thursday a project to help consumers choose electricity and gas suppliers after EU energy markets were thrown open to competition at the weekend.

The so-called energy consumers' charter would define peoples' rights and provide information on contracts, prices and dispute settlements as well as warn them against unfair business practices.

The Commission, the European Union's executive body, hopes that the energy industry, businesses and regulators will sign up to the charter in December, following a period of public consultation.

"Liberalisation of the energy market is a must but we need at the same time to have a very strong message to consumers and suppliers," EU Consumer Commissioner Meglena Kuneva told reporters in Brussels.

"I'm watching you," she warned suppliers. "I will watch this market, I will make contact all the time on the basis of this charter with business, but also with citizens or with non-governmental organisations."

The entire EU energy market was opened up to competition on Sunday, allowing consumers to choose their gas and electricity suppliers and spelling an end for monopolistic state-run utilities.

The liberalisation process has been resisted in some countries and welcomed in others, highlighting different attitudes to competition and the notion of protecting national interests in the energy sector.

Consumers entitlements under the charter are likely to include the right to change electricity or gas supplier free of charge, to have energy prices that are transparent and easily comparable and to a simple complaints procedure.

European Energy Consumers' Charter: Q&A on the opening of the EU energy markets