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AIE joint call to the EU Commission and alliance of 8 European associations regarding the Primary Energy Conversion Factor - PEF

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Joint call of 7 European associations on the Primary Energy Factor

Joint call of 7 European associations on the Primary Energy Factor

Up to 8 European Associations responded positively to the initiative of AIE last November to share their concerns regarding the use of conversion factors for electricity, in EU energy and climate policy. On 26 February a joint letter undersigned by 8 European Associations (AIE, CECED - European Committee of Domestic Equipment Manufacturers, ECI - European Copper Institute, EUEW - European Union of electrical Wholesalers, EURELECTRIC – Union of the Electricity Industry, EHPA - Electric Underfloor Heating Association, NHO - Confederation of Norwegian Enterprises) was sent to the Director general of DG Energy. In the meantime the letter has received positive support from at least 3 member States, Belgium, Denmark and Finland.

The letter clearly explains why the current use of Primary energy conversion Factors as a tool/instrument leads to > Contradictions with current EU energy and climate objectives and their instruments e.g. RES and the EU ETS > Inconsistencies with the realization of the internal market for electricity and gas As a consequence, this leads to contradictions between the incorrect value for electric solutions e.g. the electrification of transport and heating/cooling, the ambitions/objectives of the EU’s energy and climate policy. In addition it creates a distortion of the demand side of the market as the consumers are being misled in fuel choice and their consumption is no longer based on price signals but instead on wrong parameters. Moreover consumers might chose less efficient appliances only because they rank better on a label based on primary energy. Furthermore other initiatives to promote intelligent networks, smart cities, electricity storage, CCS will be undermined. The signatories of the letter hope the Commission acknowledges the problems identified and would appreciate an appropriate forum for discussion. The joint letter can be found here