Utility Week

8 | 12TH - 18TH APRIL 2019 | UTILITY WEEK Policy & Regulation This week Start of smart meter obligation postponed Start delayed until 30 June after two-thirds of respondents opposed BEIS's minded-to decision The government has postponed the introduction of a new obligation on energy suppliers to install a smart meter when replacing a traditional meter or fitting one for the first time. In a consultation published in January, the Department for Business, Energy and Indus- trial Strategy (BEIS) stated its intention to activate the New and Replacement Obliga- tion (NRO) at the end of March. The department has now delayed the start date to 30 June a„er two-thirds of respondents opposed its minded-to decision. According to its 2015 smart meter rollout strategy, the government originally expected the NRO to come into effect in mid-2018 – on or a„er the planned end date for SMETS1 installations. However, the timetable has been set back by a series of delays to the SMETS2 rollout, which have prolonged the deployment of SMETS1 meters. Writing to stakeholders, BEIS director of smart meters and systems Daron Walker said the majority of energy suppliers that responded to the consultation thought "more time was needed before they could provide a mature SMETS2 prepayment service". Smaller and non-domestic suppliers in particular said implementing the NRO too early could hand an "unintended competitive advantage" to larger suppliers if they are able to offer such a service sooner. Some respondents also raised concerns about the length of the gap between the consultation and the pro- posed activation date, arguing it was too short to allow for adequate preparations. TG ENVIRONMENT Legal heavyweight to head Brexit body Environment secretary Michael Gove has hired an "eminent" environmental lawyer to head the body that is being set up to oversee the environment protec- tion regime if the UK leaves the EU without a withdrawal agreement. The small interim secretariat would bridge the gap le„ as a result of the European Commis- sion no longer having a remit in the UK. It would take over from the Commission the enforcement of EU environmental law that the UK government has pledged to uphold post-Brexit until a new body, called the Office of Environmental Protection (OEP), is up and running in 2020. Gove told the House of Lords EU energy and environment committee on 3 April that he had secured the agreement of a "distinguished" environmental lawyer to lead the shadow body. Describing them as "nobody's patsy", he said: "In the sub- optimal situation where we leave without a deal, we have secured an eminent, energetic and effective watchdog." GAS Rough closure spurs security review The government is carrying out an internal review of the UK's gas security following the clo- sure of the Rough storage facility in the North Sea, Claire Perry has revealed. In a letter to the Department for Business, Energy and Indus- trial Strategy select committee that has been conducting an inquiry into the UK's post-Rough gas security, the energy and cli- mate change minister wrote that the department ordered further research following a workshop held in March 2018. Centrica closed Rough, the UK's biggest gas store, last year. The ageing and loss-making facility required an estimated £1 billion of refurbishment work. ENERGY Avro Energy receives Ofgem final order Ofgem has issued a final order to Avro Energy, meaning that from 26 May the supplier cannot take on any new customers if it is still in breach of its smart meter rollout requirements. The final order, issued on 3 April, means the supplier must become a Data Communications Company (DCC) user no later than 25 July this year. Avro must demonstrate that it is a DCC user if it is to avoid the customer ban in May. All suppliers were required to become DCC users by 25 November 2017 to help drive the installation of second- generation SMETS2 meters. Adjusted: smart meter installation obligation Political Agenda David Blackman "MPs are on standby for Brexit-related legislation" Last year, the timetable for Australia's parliament showed it was due to sit for as few as ten days during the first quarter of the year. Many suspected the Austral- ian government wanted to close down opportunities for parlia- mentary mischief-making. British MPs probably feel a touch of envy at their Antipo- dean counterparts this week as they settle down for an unscheduled extra fortnight in the Commons. to a leak, provided a graphic reminder about the deteriorating physical condition of parlia- ment. MPs seem just as mentally frayed too. It may seem a dim and distant prospect, but parliament must tackle the pressing issues facing the UK, which Brexit has crowded out, such as the future of energy and water policy. To do that, MPs will need clear heads, a quality that has been in short supply at Westmin- ster recently. The government announced last week the Easter recess is cancelled so MPs are on hand for any last-minute Brexit votes. The move prompted grumbles that it is a stunt, laced with a desire to put the Commons on the naughty step for repeatedly rejecting the withdrawal agreement. Parliament has been able to clear the backlog of Brexit- related legislation, which must be in place if the UK ends up exiting the EU without a deal on 12 April, an option that was still in play as Utility Week went to press. Last week, the suspension of the House of Commons due

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