Following the appointment of David Cameron as the new Prime Minister, and the formation of the new Government, the release of the full text of the high-level coalition agreement reached between the Conservatives and the Liberal Democrats has thrown some light on future energy policy under the coalition. The high-level agreement is subject to a final formal Coalition Agreement between the parties, and so there may be further detail and some changes in due course.
Advocates of smart metering/grids will be pleased to note that it includes an agreement to implement "a full programme of measures to fulfil our joint ambitions for a low carbon and eco-friendly economy", including the establishment of a smart grid and the roll-out of smart meters. The high level agreement also refers to a host of other energy policies, including mandating a national recharging network for electric and plug-in hybrid vehicles.
As part of our on-going series of Law-Now articles on the topic of smart metering we will be following the development of the new Government's smart meter policy.
Background
On 11 May 2009 the UK's Department for Energy and Climate Change (DECC) confirmed the then Government's plans to install smart meters in all households by 2020 and launched a public consultation on domestic smart metering for electricity and gas in Britain (the Consultation). Having reviewed the replies to the Consultation, the last Government issued its response (the Response) in December 2009.
Following the Response, further work was to start immediately, with the DECC aiming to complete Phase 1 of that work by summer 2010.
The new Government
The environment has been cited as one of the areas where the coalition parties share the strongest policy affinities. Based on statements to date, industry players and smart meter/grid advocates might reasonably expect that not only will the new Government's commitment to smart meters be no less robust than the last administration's but that Government efforts on smart metering and smart grids might be increased.
The Liberal Democrats' Chris Huhne will now become Energy and Climate Change Secretary. Whilst the last administration had targeted 2020 for the roll-out of smart meters to all UK homes, the Liberal Democrats had previously stated that they would seek to "roll out smart meters to all households within five years".
The Conservatives, the dominant coalition party, have also been strong supporters of transforming the UK's electricity networks with "smart grid" and "smart meter" technology, as further explained in their policy statements and Technology Manifesto. Conservative representatives have also previously stressed the need for, and possibility of, a faster roll-out of smart meters; although based on previous statements it seems the Conservatives may be minded to find common ground on the last Government's preferred "centralised communications model" .
Next steps
The new coalition Government has so far established agreement on high-level principles to guide their years in power. Along with other industry players, we await further detailed policy announcements with interest.
Resources
The agreement reached between the parties is set out here and here .
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 14/05/2010.