Electricity disclosure: The troubled birth of a new policy

As of October 2005, consumers in the EU15 have, in theory, become part of the decision-making process behind determining the national electricity generation mix in their countries. Under European liberalisation legislation, electricity suppliers within the EU are required to provide all customers, both domestic and non-domestic, with information about how their electricity has been generated and to make available details of the consequent environmental impacts. As part of a liberalised market, these ‘electricity labels’ will play an important role if consumers are to exert the power of choice. Analysis of a pan-European telephone survey involving 3000 participants across 10 countries identifies the potential impact of electricity disclosure. Evidence from the UK demonstrates the many pitfalls between theory and practice and the limited options consumers have at present to influence the generation mix.