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UTILITY WEEK | 30TH JUNE - 6TH JULY 2017 | 17 Policy & Regulation "Moving from plans to implement an energy price cap to investing in smart meters is like a football club trying to buy Lionel Messi but ending up with Joey Barton." Brendan Flattery, chief executive, Utilitywise "There is no reason to legislate except if it is essential to do so. Having fewer laws coming onto the already thick statute book is no bad thing." Howard Bassford, planning partner, DLA Piper Policy & Regulation into less pressure on MPs from constituents. Thomson says the market outlook over the next two years is relatively benign, although spikes are possible. "I would be surprised if the market doesn't self-correct during the consultation period," he says. The other big announcement in the Queen's Speech was the unveiling of a Smart Meters Bill. The Conservative mani- festo had already watered down a previ- ous commitment to install a smart meter in every home by 2020. The bill extends the government's existing smart meter roll-out powers by another five years. While the bill doesn't mean that the government is revers- ing course on the smart meter programme, Thomson says it does offer "wiggle room" over the pace of implementation. Dan Lewis, energy policy adviser for the Institute of Directors, says the government has recognised that the original deadline cannot be achieved. "There was no way they were going to make the 2020 target." He interprets the bill as watering down of the 2020 deadline, saying it reflects the emergence of smaller competitors without the resources to support deployment. "The world has changed a lot: it's gone from a market where 99 per cent of customers were with the big six who had the infrastructure and balance sheets to support this." A more relaxed approach to smart meter installation will enable companies to tackle some of the technical teething troubles while halting the installation of the less sophisticated SMETS 1 meters, says Lewis. "When this bill comes through we are going to get a proper debate about smart meters that we haven't really had, which will be very healthy." If utilities' views prevail in this debate, the Queen's Speech would result in "a double lobbying win" for the sector, added Lewis. "They won't get hit with extra charges for smart meter deployment and the price cap has been put off." Nolan urged to rebut price cap Ofgem chief executive Dermot Nolan has been urged by a group of former regulators to rebut the government's conviction that price intervention in the energy market is required. The group, led by Stephen Littlechild, has written to Nolan to set out the case against price capping. Littlechild suggests that Ofgem, "guided by its statutory duties and by the evidence available, should first consider carefully whether there is in fact a case for further restrictive regulatory intervention". The letter makes two key points that Ofgem should address instead of focusing on price regulation. The first relates to the increasing impact of environmental and social costs on energy bills. The second, the inability of vulnerable customers to "take full advantage of the lowest prices that the competitive retail market has to offer". Their move follows the energy secretary Greg Clark giving Ofgem the job of advising on how best to implement a "safeguard tariff". The full anti-price cap letter can be read at http://bit.ly/2sSFR2Q. Smart Meter Bill The bill will: l extend, by five years, powers to make changes to smart meter regulations, and make sure the roll-out is delivered effectively l introduce a special administration regime to ensure continuing operation of the national smart meter service if the provider becomes insolvent Nuclear Safeguards Bill The bill will: l set up a UK nuclear safeguards regime as we leave the EU and Euratom l give the Office for Nuclear Regulation powers to take on the role and responsibilities required to meet our international safeguards and nuclear non-proliferation obligations Automated and Electric Vehicles Bill The bill will: l allow the regulatory framework to keep pace with the fast-evolving technology for electric cars, helping improve air quality l provide for the installation of charging points for electric and hydrogen vehicles l extend compulsory motor vehicle insurance to cover the use of automated vehicles, to ensure that compensation claims continue to be paid quickly, fairly and easily, in line with longstanding insurance practice Other measures Critical national infrastructure Proposals will be brought forward to consolidate and strengthen government powers to protect national security. This will ensure that foreign ownership of companies controlling important infrastructure does not undermine British security or essential services. The proposals will enable the UK government to scrutinise significant foreign investment only for the purposes of protecting national security and give it powers to intervene in transactions that raise national security concerns. Consumer markets, including energy The government will ensure fairer markets for consumers. This will include bringing forward measures to help tackle unfair practices in the energy market to help reduce energy bills. The government will publish a green paper to closely examine markets that are not working fairly for consumers, and is prepared to act where necessary. It has committed to extending the price protection currently in place for some vulnerable energy consumers to more of those on the poorest value tariffs. The government is considering whether to do this through the regulator or legislation. The government will continue to support the effective and efficient completion of the smart meter roll-out, putting customers in control of their energy use. it will also support initiatives to improve switching and transparency. Programme