HomeD: Regulatory and Policy

Revision as of 14:42, 20 July 2015 by Kate (Talk | contribs)

It may be useful to start with a timeline of the background policy development, and the development stages (Tranches 1 to 6). The key regulations governing the UK energy sector are the Electricity Act 1989 and Gas Act 1986, which have been amended many times[1]. The Energy Acts, 2008 and 2011 govern these changes in relation to smart metering[1]. The Acts prohibit activities such as supplying electricity without holding a licence to do so. Licence holders must comply with the Licence conditions and this is enforced by Ofgem, the Gas and Electricity Markets Authority[1]. Under the licence conditions sit the industry codes detailing the technical and commercial obligations[1].

The regulatory framework is undergoing changes to get up to speed on smart meter roll-out. Changes include updating energy licences and codes, for example requiring energy companies to roll-out smart meters. Additional licenseable activity has been introduced including the provision of communication between suppliers and other parties and smart meters in consumer premises. In addition a Smart Energy Code sets outs the rules, rights and obligations of all parties for the new metering obligations.

A timeline of the policy leading to smart meter rollout, governing regulation and licensing
[2] [3] [4] [5] [6] [7] [8]

Smart meter roll-out plans and timetable (incl. opportunities for involvement, data issues, support for vulnerable etc)

We are currently at the Foundation Stage (since December 2012[9]). We are expected to enter the 'mass-roll out' phase April 2016, which is later than the previously expected date of December 2015. DECC have named the current phase the 'Transition phase' of the Smart Metering Implementation Plan (SMIP)[10]. This is considered to be the stage where commercial, technical and regulatory plans will enable energy suppliers to roll-out the smart meters, in collaboration with the DCC.

Licensing of different roles in energy system (supply, distribution, meter operation, access to DCC etc)

Opportunities to mandate ‘smartness’ in new developments and refurbishment

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‘Space to experiment’ opportunities to operate outside full regulatory regime (Ofgem, DECC etc) – and what could be done

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Privacy (for both individuals and commercial interests) vs public good. Can data be anonymised while still retaining sufficient detail?

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  1. 1.0 1.1 1.2 1.3 DECC, 2013. Smart meters: information for industry and other stakeholders. Available from: https://www.gov.uk/smart-meters-information-for-industry-and-other-stakeholders#regulatory-framework-for-smart-metering
  2. Energy Act 2008, section 88. Available from: http://www.legislation.gov.uk/ukpga/2008/32/part/5/crossheading/smart-meters
  3. HM Government, 2010. The Coalitation: our programme for government, 2010. Available from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/78977/coalition_programme_for_government.pdf.
  4. EU Parliament and Council, 2012. Directive 2012/33/EU, Official Journal of the European Journal, available from: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:327:0001:0013:EN:PDF
  5. EU Parliament and Council, 2012. Directive 2012/27/EU. Official Journal of the European Journal. Available from: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:315:0001:0056:en:PDF. Accessed 15/07/15.
  6. EU Parliament and Council, 2009. Directive 2009/73/EC. Official Journal of the European Journal, available from: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:211:0094:0136:en:PDF
  7. EU Parliament and Council, 2009. Directive 2009/72/EC. Official Journal of the European Journal, available from: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:211:0055:0093:EN:PDF.
  8. EU Parliament and Council, 2012. Directive 2012/27/EU, Official Journal of the European Journal, available from: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:315:0001:0056:en:PDF.
  9. Smart Metering Working Group, 2014. Smart Metering: conditions for a successful roll-out. Available from: http://www.lowribeck.eu/media/3507/smart-meter-working-group-report_final_july-14.pdf
  10. DECC, 2014. Transition Governance overview: Smart Metering Implementation Programme. Available from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/363674/transition_governance_overview.pdf