Lecture 1
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Setting the scene
Lecture Objective: What is European private law? // Understanding inequality as an analytical
framework // Connecting inequality and (private) law
Lectures:
1. Introduction
2. Energy poverty, price and just transition
3. Labour, Private Law, and social Justice
4. Housing justice and specialised inequality
5. Non-discrimination in Private Law
6. Posting of workers in the EU
7. Inequality and the constitutive role of private Law
Assessment:
20% Group Task — discussion questions
- 2 questions submitted to the group
- 5 Questions submitted via canvas
- Deadline 12pm Thursday (of assigned week)
80% Exam
- What is meant with European Private Law?
• EU rule which affect horizontal transactions (example: the covid restrictions >> airlines
reimbursing consumers)
• Private law is the law that applies to private parties (eg. exchange, conclude a contract, sue
each other in tort)
- Entities acting in their private capacity
- Private law adopted by the European Union:
• Primary and secondary legislation
• Especially directives (as implemented by the MSs?)
- Mostly Consumer Law
- Or private laws of 27 MSs
• Comparative approach: similarities and differences?
- How countries differentiate their private laws
- Why are MS differentiation interesting: understanding that it demonstrates the human-
made nature of private law, countries have differing ideologies = create different private law
• Creates area for ‘Intervention’
• EU cannot be too restrictive
- EPL as rules governing private disputes in a multi-level EU legal order
Private Law ‘in real life’
- applied in civil courts (and ADR), mostly about ‘patrimonial’ interests
- Core topics: contract, tort, property, family, succession, company, PIL
- Emerging areas by “subject”: finance, information (data copyright)
- Contract as rule-making; private regulation (means of private law)
- Private law and “public” dimension
• Constitutionalisation: horizontal effect of fundamental rights: public values?
• Instrumental private law: concerns with
- Groups: eg. Tenants v landlords, patients, etc.
- Goals: efficiency, growth, sustainability
- Europeanisation
• 1800-1980s >> private law in Europe = Nation state or State Building
- Civil codes and some statutes
• 1980s-Early 2010s
- Acquis communautaire: internal market, social europe, especially consumer law
- EU Civil Code?
• 2010s-present
- Consumer law
EU critique >> instrumentalisation of Market and focus on economic objective in private law
Most prominent Legal basis: 114 TFEU // Legal realm governed by CJEU (non democratically
elected) >> distancing of private law-makers from private-law recipients
Public/private divide
- Is private law really a ‘private’ law?
- What issues of private life should be regulated by private law and which by public law (if any)?
- What issues require European instead of National regulation?
Inequality
- What is inequality?
- Equality of what?
• Income // Needs // Opportunities // Power
- Social vs interpersonal inequality
• Social on a more aggregate level whilst interpersonal represents the “I in relation to you”
situation
- Inequality among whom?
- Formal and Substantive inequality in private law
• Course of 20th century revealed a shift >> people wanting to do away with feudalism and to
create rather egalitarianism (People being equal not only in words and formalities but rather in
the substantive plane)
Positive vs Normative Inequality
- Positive
• How much inequality is there? // what types of inequality are there? // Data, comparing
groups or on tendencies
- Normative
• What kinds and amounts of inequality are acceptable? // who ought to do what about
inequality?
• Theories of justice
- social, distributive justice
- Interpersonal ,corrective justice
Mapping Inequality:
- Ownership/Labour
- Graduate/non-graduate
- Citizenship
- Parenthood
- Categorical inequality (gender, race, religion, disabilities, age)
Why is inequality problematic?
- Economic and social welfare
- Social: Limited upward mobility
- Political: captured political processes, mistrust of institutions
- Dignitarian concerns: egalitarian aspirations as a backbone of society (in theory at least)
- Non-instrumental reasons: inequality as reproachable from a moral/ethical perspective
Equality as an ideal (normative aspects)
“Men are born and remain free and equal in rights”
Modern Law and the ideal of equality >> what is the role for private law?
Ancient law: “from status to contract”
What role for ‘Contract Law’?
‘Pacta sunt servanda’ and the freedom of contract as a first principle
In what sense was freedom of contract revolutionary? Reaction against the lack of freedom from
slavery >> everyone is capable of concluding contracts (some exceptions eg minors)
How this transformation became manifested in legal rules of validity of contracts?
What conception of equality underlies this legal institution?
“Growing inequality and over reliance on the capacity of markets to bring about local justice
threaten the social contract in many countries” (UN World Social Report 2020)
- The prospect of inequality in a changing world
- Digitalisation: “the technological revolution”
- Anthropocene: “Climate change; exacerbating poverty and inequality”
- Urbanisation: “expanding opportunities but deeper divides”
- International migration: “a force of equality, under the right conditions”
Tutorial 1 - Lochner Case
Peckham opinion (majority) — textuality of “required” and “permitted” in the consideration of the
legality of the freedom to contract and freedom to perform labour (beyond what is contracted) of a
period surpassing what statue has deemed legal >> absolute prohibition on employer
>> State has some power to limit freedom to contact (under certain consideration)
>> Is it necessary and proportionate to curtail individuals’ rights to labour (Fourth Amendment)
over the primacy of New York’s Statute
“It is a question of which of two powers or rights shall prevail -the power of the State to legislate
or the right of the individual to liberty of person and freedom of contract.” Pg. 57
>> Does the labour of a baker constitute of a health-endangering concern sufficiently serious to
warrant a limitation?
Decision — “There is, in our judgment, no reasonable foundation for holding this to be necessary
or appropriate as a health law to safeguard the public health or the health of the individuals who
are-following the trade of a baker”
- The Lochner case as an anti-model
• A misguided intervention on the significance of ‘liberty’ in the ‘liberty to contract’
- There is a presumption of equality between employee and employer
- The employee is found to be free to demand inhumane hours
under this fourteenth amendment’s ‘liberty’ to do so.
- The Lochner case as a transformative movement
• Challenging the constitutionalisation of ‘freedom of contract’
• Disproving the notion that law could separate politics and legal
reasoning and that legal reasoning could be distinguished from
moral or political reasoning
• Politicising freedom of contract
- Formal vs Substantive Equality
- Social inequality >> level of abstraction >> what are the distributive effects of this power
dynamic (owners of means of production and workers ((marxist language)))
- Dissenting opinion: Private law as a means of achieving a certain social good
Majority opinion: “reasonable and rational” people — assuming that every individual is informed
and independent — individuals are most capable of deciding for themselves what they need >>
unnecessary for state paternalism - Liberal framework
Majority court place the power on the court // Justice Holmes places power on the legislator
Places power with the owners of capital
The legal transformation of Lochner:
Formal equality >> treating like cases alike - Minimal Justice (and rationality)
‘Classical’, late 19th century private law was ‘formalist’ >> treated parties as if they were equal in
spite of substantiative differences (bargaining power) // Laissez-faire
Materialisation of private law (20th Century) >> shift towards a more substantive notion of
freedom and equality - compensating for inequality, restoring equality
Contextual: via doctrines
- Various applications of good faith and fair dealing
- Introduction of new doctrines, eg unconscious ability, economic duress, abuse of
circumstances or unfair exploitation
Categorical: Rules aiming to protect certain categories of weaker or venerable parties
W2 Reading Notes
Marlies Hesselman, 'Energy poverty and household access to energy services in international,
regional and national law’
- The European Union (EU) has identified energy poverty as ‘a growing concern’ amongst EU
citizens, especially as a result of high energy prices, low incomes and the poor energy
efficiency of homes, as well as energy transition
- ‘right to access essential services of good quality’ and that support has to be ‘available for
those in need’
- The increased recognition of household energy access as a human rights concern
International Law
- (UN) Article 14 CEDAW >> recognition of health and safety to ensure the access of renewable
energies for ‘Rural women’ >> General Recommendations of UN human rights treaty
monitoring bodies (or ‘General Comments’) are not legally binding
- UN Human Rights Council experts have addressed the rights to adequate housing and health
on several occasions in some detail
- Stating that this right entails a ‘right to live somewhere in security, peace and dignity’ with
access to ‘facilities essential for health, security, comfort and nutrition’
- when private actors are involved in the provision of essential services, states must strictly
regulate and monitor their activities, including by imposing “public service obligations”’
(PSOs)
• universality of coverage, continuity of service, quality, pricing policies, user participation, non-
discrimination and access to information
• Public authorities responsible for delegating the necessary framework for private actors to be
held accountable
EU Law (regional)
- ‘Services of General Economic Interest’, such as electricity, constitutes a ‘shared value’ and
needs to be provided in line with ‘a high level of quality, safety and affordability, equal treatment
and the promotion of universal access and of user rights
• Recognised as a right >> Charter Art. 36 // Principle 20 ‘right to access essential services of
good quality’ of the new non-binding EU Pillar of Social Rights
• EU concern for secondary energy Law: new electricity market design pursued through the
EU’s fourth legal reform package adopted in 2018–2019, households’ right to ‘competitive’
prices superseded their previous right to ‘reasonable’ prices under Directive 2009/72/EC (the
2009 Electricity Directive)
• EU allows for some derogations on the application of social tariffs ‘pursuit of a general
economic interest’
• Articles 27–28 of the 2019 Electricity Directive, as well as Article 3(3) of Governance
Regulation 2018/1999 >> further protection for vulnerable customers and energy-poor
households
• MSs are now legally obligated to define and assess the ‘number of households in energy
poverty’ as well
- “MSs have leeway to provide their own national definitions – however the level of
discretion is not unlimited >> it shall be of great interest to see how the notions of
‘necessary domestic energy services’ and ‘basic standards of living’ are defined and taken
into account”
• 2019 Electricity Directive >> must be interpreted in respects to the EU Charter of
Fundamental Rights
- ‘from the premise that any proportion of households in energy poverty’ may be significant
- The Commission will annually review the directive’s implementation, with a major
legislative review planned for 2025
National Law
- Differentiated conditions in a range of different States >> full electrification achieved,
privatisation of services, etc.
• Developing countries >> RISE indicators (developed by UN) to evaluate the desirable level of
electricity + affordability and etc. measures and plans
• Developed countries >> issues more concerning affordability, reliability and quality, as well as
protection against abuse by (private) providers or disconnections of electricity supply
- Civil society organisations grouped in a ‘Right to Energy Coalition’ (fairer pricing etc.)
- Indeed, a clear recent trend in national legislation has been the increased adoption of
‘rights to energy’ or ‘rights to electricity’ in law or through case-law
Conclusion questions >> interesting to note for assignment:
- How can universality of coverage for every household be guaranteed – including for those in
difficult to reach areas, or for people with difficulties in paying for even basic connections or
services?
- How can states ensure that all persons receive adequate, sufficient, reliable, continuous and
high-quality supply in line with their personal needs?
- How can ‘the overall financial viability of the supply system’ be squared with ‘reasonable
payment rates for electricity supply for every person’? How can relevant costs and benefits be
best distributed? In short, how to ensure affordability?
- How can regulations approach the protection of energy poor and vulnerable persons, including
people needing additional support to enjoy access to services on a par with others, or in light of
specific needs (e.g. age, health, disability)?
- How can non-discriminatory access to energy, user participation and access to information best
be guaranteed?
- How specifically can disconnections be protected against?
Exemplary of the requirement of public intervention in a privatised sector >> sphere of energy
market regulation, energy policy, taxation, the social (welfare) system, or otherwise — strong
independent regulators and oversight mechanisms
Hanoch Dagan and Avihay Dorfman. ‘Poverty and Private Law: Beyond Distributive Justice.’
Jonathan Symons and Simon Friederich, ‘Tensions Within Energy Justice’
Key principles >> distributional justice (equitable access to energy), procedural justice (fair
participation in energy decision-making), and recognition justice (acknowledging marginalised
groups in energy discussions)
— trade-offs between equity, sustainability, and economic efficiency arise
local versus global justice // short-term versus long-term justice
>> nuanced understanding of energy justice - acknowledges the uneven impacts of energy
transitions across different regions and communities, and the ways in which energy systems are
deeply connected to broader issues of environmental sustainability and social inequality
Lecture 2
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European Consumer law, energy poverty and energy justice (in green energy
transition)
Lecture Outline (objectives)
EPL (qua consumer law) and energy law and policy
Understanding energy poverty and inequality
Energy justice and private law
Consumer in EU consumer Law
The set of rules that provide some sort of protection (…)
Consumer: Someone who enters a contract for the purpose that is not connected with the trade
business or profession
>> Consumer protection emerged as the corollary of the internal market >> legal basis in
consumer law is almost always Art. 114 - protection of consumers and markets by
approximating standards across Member States
- Average consumer >> normative image
- Unfair Commercial Practices Directive 2005: Informed, circumspect
- The average consumer is reasonably informed, reasonably observant and reasonably
circumspect (circumspect: someone who will not accept any provided information as truthful)
- Vulnerable consumer
- 2005 UCPF
- 2016 Commission document: expands factors
- 2021 - digital markets (new drivers of vulnerability)
- “Responsible” consumer
- Eg. Financial services
- Engaging broadly with sustainability (economic, social, environmental)
What is expected of the ‘good’ consumer
>> to make good use of the provided information by comparing informations and avoiding ‘bad’
products by favouring ‘good’ ones and naturally rewarding the ‘good’ businesses
EU Energy Law and consumers
In the field of energy, consumer law has not become a very common purpose or topic of legal
discussion >> EU has historically intervened in the energy market by allowing MS to liberalise and
then proceeding with intervention
- European Energy law is mainly “public” law
• Liberalisation og formerly public provision
• Requirements for providers and infrastructures
- Consumer protection “in the silo”
• Assumption that competition will deliver
- deliver good prices
- deliver good energy - stable and sustainable energies
- Deliver safe energy
• Transparency, information
• Ensuring choice and the ability to change providers
- Plenty of sectoral regulation
• Electricity directive
• Gas directive
• Renewable energy directive
- And national laws
>> Consumers in Energy Markets
2016: Consumer-centred energy transition
What does the legislation do:
- Facilitate own energy production
- Free access to comparison tools (by suppliers)
- Facilitate provider change >> average consumer can switch with 24 hours
- Clear information in energy bills
The role and position of consumers in EU energy law and policy
- Active consumer:
• Fosters competition by monitoring and switching
• Responsible consumer who opts for greener energy
- Vulnerable consumer:
• Needs access to energy
• And protection against disconnections
• Prices?
- Prosumer >> a consumer who is also a producer (solar panels)
• More decentralised energy production
• Limited EU intervention but: consumers must enjoy same right as in standard settings
- Consumer as home-owner (or home dweller)
• Energy efficacy first “renovation wave”
• 'The most sustainable energy is the energy which is not used at all’
Push for renovation and green energy (energy poverty) took more place in the energy debate over
the last few years (2019-present)
>> Ukraine war >> more attention in the energy sector
Energy and Inequality
- Within Europe/individual countries/ communities
- Among communities/countries
- “Access to energy” - minimalist definition
- What do you use energy for?
• Lighting, computers, transport etc.
- CEDAW committee has found in General recommendation No 34 that rural woman and girls are
particularly vulnerable ti the absence of modern household energy supply, as well as increases
in energy costs and scarcity of resources, as they are typically primarily responsible for their
household’s rule use and collection
- “Vulnerable persons’ have been at risk of being disproportionally affected by disconnections or
price increases.. (children)”
Energy market in the EU
- Former public provision
- Gradual liberalisation/privatisation
- Different degree of concentration
- Price: regulation or market
2019: From ‘reasonable’ to ‘competitive’ prices >> requires liberalisation
Make-up of retail price >> includes a renewable energy surcharge
What is energy poverty?
- “Energy poverty is a situation in which households are unable to access essential energy
services” (commission recommendation 2020)
• “Inability to keep home adequately warm” / difficulty obtaining the necessary energy in their
home to meet their basic needs (France)
• “A household is said to be fuel poor init needs to spend more than 10% of its income on fuel
to maintain an adequate level of warmth” (UK 1991)
Energy poverty and law
“In more developed countries, concerns are likely to mostly focus on issues of affordability,
reliability and quality, as well as protection against abuse by (private) providers or disconnections
of electrical supply”
EU law: vulnerable consumers and energy poverty
Electricity directive 2019
Article 27 requires MS to nationally define a concept of ‘vulnerable customers’, which, as under
Art. 3(7) of the previous Electricity Directive 2009/72/EC, may relate to the notion of ‘energy
poverty’ and involve the prohibition of disconnection in critical times
Right v providers
Article 27 “Universal service”
(2019 Energy Directive) >> Article 28 “Vulnerable Customers" >> the MS shall define the concept
of vulnerable customers and this concept may refer to the prohibition of disconnection in “critical
times”
2023 Energy efficiency directive >> first EU-wide definition of energy poverty
“Household lack of access to essential energy services, where such services provide basic levels
and decent standards of living and health, including (…) in the relevant national context”
Electricity Market Design Directive 2024
Art 28(a)
- MSs shall ensure that vulnerable customers and customers addicted by energy poverty are fully
protect from electricity disconnection, buy tasking the appropriate measures, including the
prohibition of disconnection or other equivalent measures
- Energy poverty a problem of poverty?
- Shifting framework
- Energy poverty a problem of energy market design?
- Energy consumers throughout the world require device standards that allow them to have
‘effective opportunities to undertake the action and activities that they want to engage in and
be who they want to be’
- Exercising meaningful self-determination >> getting closer to making energy a matter of
private law
- Appropriate energy provision
- Positive obligation of states
- A right viz providers?
- AAAQ standards (Human rights): access to essential public goods and services according to
sufficient ‘availability/quantity’ for all ; adequate geographic and economic ‘accessibility for
all’; the ‘acceptability of services’
Where consumer contract law shows up:
- Access to good quality, reliable provision
- Universal Service Obligations: right to be supplied with electricity of a specified quality within
their territory at competitive, easily and clearly comparable, transparent and non-
discriminatory prices'
- Distribution system iterators are obliged to connect customers under specific terms,
conditions and tariffs, and states may appoint suppliers of last resort
- Contract standards: obligation contractually to provide a certain amount, reliability etc.
- Affordability
- Price control? >>
- Fourth legal reform package (2018-2019), households’ right to ‘competitive’ prices instead of
‘reasonable’ prices under 2009 Electricity directive
- Protection against disconnection
- Art 27 2019 Energy directive: MS need to identify vulnerable consumer, protection may entail
prohibition of disconnection at “critical times”
Commission proposals
>> provide emergency income support for energy-poor consumers, for example through vouchers
or partial bill payment, which can be supported with EU ETS revenue;
>> Authorise temporary deferrals of bill payments
>> Place safeguard to avoid disconnection off the grid
Private law provides terms of interaction
To what extent are aspects of energy poverty distributive justice and corrective justice?
Corrective justice >> relationship between equals “what I owe you and you owe me” >> relational
justice (a matter of private individuals >> possibly addressed by private parties)
Distributive justice >> relationship between differentiated people - collective provision — creating
equality based on differing needs >> traditionally considered a matter of state (not contract law)
How to accommodate for (energy) poverty?
- direct accommodation: lower prices for poor users
- Who pays?
- Problems with poverty accommodation
- Discreetness // hybridity // fungibility
- Indirect (structural) accommodation: affordable energy
Energy poverty as poverty?
- “Socially constructed”
- Ability to participate in society
- Ability to interact on equal terms
Electricity market design directive 2024
- consumer not treated disadvantageously on the basis of ack of smart meter
- Right multiple meters in the household
- Right to participate in energy sharing, also for vulnerable7energy poor consumers
- Right to fixed-price, fixed term contract for at least one year
- Protection against disconnection
What about profit?
Access to affordable energy during an electricity price crisis
Tutorial 2 - Inequality, Energy Poverty and Energy affordability
Learning Objectives: (slides)
The evolution of consumer law >> protecting vulnerable peoples from disconnections and energy
poverty — legislatively defining the meaning of ‘responsible consumers’, ‘energy poverty’,
‘vulnerable consumer’
Viewing energy as a basic need, a public good - the tool of private law within the field of energy
(contract law)
How to square energy with private law (privatisation of a basic need)
How to square energy poverty (and equalising measures) with freedoms of contract
Role of private law >>
EU Law
- From ‘reasonable’ to ‘competitive’ prices
- MS can pose social tariffs
- The Electricity Directive (conditioning the liberalisation of energy markets)
- Protection of vulnerable consumers: additional vulnerability criteria, such as ‘income levels, the
share of energy expenditure of disposable income, the energy efficiency of homes, critical
dependence on electrical equipment fir health reasons’
BEUC Document
1. Give consumers the right to always access a fixed price contract (Electricity Directive (EMD),
article 2(15a) and 11(1))
• Does not achieve distributive justice as it provides a 'level playing field’ allowing the rich to
pay a bill of the same proportion to those suffering energy poverty
• From the interpersonal justice perspective however it relates to ‘what the fixed price is’ >>
In the interpersonal dimension this may be a favourable idea if the playing field is seen as
malleable to relation contract collusions
• Possibly argumented as a reverse distribution where the poor only get poorer (level playing
field increases poverty disparities)
2. Allow consumers who cannot pay, to pay in instalments and protect vulnerable and energy-
poor consumers from disconnections (EMD article 28a),
3. Suppliers should not be allowed to unilaterally change or terminate fixed price contracts
4. Improve pre-contractual information