Energy digitalisation – Consumers must be able to continue to choose between digital and pre-digital methods

The recent IT outage caused chaos for transport and businesses all over the world, and showed just how important it is not to be overly dependent on technology. The advantages of the transition to digital energy must not overshadow the other side of the coin: risks and challenges. Protecting consumers and supporting workers must remain high on the agenda.

Energy digitalisation does not mean ‘digital only’. Consumers must remain the top priority and the traditional ways of doing business must be preserved.

It was with this key idea in mind that the EESC’s July plenary session adopted the opinion on Energy Digitalisation: Balancing Opportunities and Risks for European Consumers. This opinion was drafted by Kęstutis Kupšys and points out that energy should remain affordable, adjustable and easy to use for consumers.

The EU needs to make progress in developing user-friendly digital tools that accommodate diverse needs and promote equal access to digital energy services. However, users should still be able to choose prices, contracts and customer services in a ‘pre-digital’ way.

‘Energy digitalisation offers opportunities and challenges. We must work together to ensure that the digital energy transition is inclusive, secure and truly beneficial for all European consumers, turning strengths into opportunities,’ said Mr Kupšys.

Protecting consumers

The energy landscape in Europe is changing quickly and digitalising it may be a double-edged sword. On the one hand, the transition to digital energy may lead to unprecedented efficiency and consumer empowerment and be a pathway to a sustainable energy future. On the other hand, it may hide major risks such as data privacy concerns, potential cyber-attacks on energy infrastructure and the digital divide that might leave vulnerable groups behind.

The EESC believes that user data cybersecurity must be a priority. This means creating dynamic consumer protection regulations adapted to the novel contexts and participants in the sector, who may not necessarily be the ‘conventional’ players in the energy sector or maintain direct contact with consumers.

The digitalisation of energy systems must not be achieved at the expense of the most fragile members of our societies, particularly those already hit by energy poverty or the digital divide. There have to be accountability safeguards among the various stakeholders and a level playing field, and local organisations and authorities can play a key role in bridging the digital divide.

Supporting workers

To mitigate the entrenched intergenerational poverty and inequality of opportunity which often precedes digital and energy divides, the Committee recommends providing support for those sectors and workers harmed by disruptions due to digitalisation.

Such support, in the form of retraining programmes and financial assistance, should target the most vulnerable first, without creating new imbalances.

The yet-to-materialise Net-Zero Academies should provide training for workers. They should be operational as soon as possible, be promoted to all interested parties and focus on energy efficiency skills. Net-Zero Academies are expected to train 100 000 learners each within three years of opening.

In order to monitor the implementation of the transition to digital energy, the EESC urges the Commission to step up efforts to launch the EU Smart Energy Expert Group. As the representative of EU organised civil society, the Committee should be invited to join working groups and roundtables on the governance of smart energy systems so that it can flag up potential issues and concerns raised by grassroots organisations.