June 2009 meeting debates smart meters and feed-in tariffs

The agenda for the June meeting of the forum focussed on the recent DECC consultation on smart metering and the ongoing development of feed-in tariffs. Geoff Hatherick and Rob Thornes from the DECC smart metering team gave an overview of the latest Government proposals for smart meter deployment, with a particular focus on suggestions for the small- and medium-enterprise sector of the market. Members of the forum expressed concern, suggesting that until the full details of the roll-out are fixed they may cease installing smart meters for fear of asset stranding. Members are also seeking clarity around meter procurement and fair access to agents once the deployment starts.

The forum also heard from Stephen de Souza who is leading the DECC development work on renewable energy financial incentives. Stephen noted that a summer package of consultations, to be published before the parliamentary summer recess, would provide more details of the Governments preferred option for feed-in tariffs (FiTs). Forum members are supportive of FiTs but wanted to know more details in terms of the necessary system changes that will be required and the redistribution of funds between suppliers once the system is operational—there is concern that cash flows could be hit if the levelisation mechanism is not designed appropriately, particularly as many members have a higher proportion of generating customers than the industry average.

Other areas of discussion included:

• the ongoing Ofgem price probe work, including wholesale market issues;
• the transmission access review and associated code governance change proposals;
• BSC Panel update; and
• the Distribution Price Control Review 5 workstream in progress by the regulator.

The next meeting will be held on 30 June 2009. For queries and comments, please contact us.