22.The Department for Business, Energy and Industrial Strategy (BEIS) has laid these draft modifications with an Explanatory Memorandum (EM). In the EM, BEIS restates the Government’s policy aim for every home and smaller business in Great Britain to be offered a smart meter by the end of 2020. The roll-out of smart meters in Great Britain is happening in two stages: the first began in 2011; the second started in November 2016, and will run until the completion of the roll-out. Smart meters installed in the first stage are known as “SMETS1 meters”.4 BEIS says that these meters provide the same benefits as the second version of smart meters, “SMETS2 meters”, in terms of accurate bills and near real-time energy consumption information. However, SMETS2 meters also provide interoperability for customers, allowing them to maintain their smart service when they switch energy supplier.
23.The Government have set an end-date for the installation of SMETS1 meters, currently expected to be 13 July 2018. These modifications provide for an energy supplier, on application, to be granted a derogation from the SMETS1 end-date, if they meet certain eligibility criteria, and subject to specified conditions. BEIS says that it consulted on the modifications between 9 October and 10 November 2017. A total of 43 responses were received: most agreed that a change in approach was appropriate.
24.BEIS has published the Government response to the consultation.5 This shows that 39 of the responses came from energy or metering organisations, and only one from a consumer group. Citizens Advice has separately published its response,6 in which it states that it does not favour any extension to the current SMETS1 end-date, stating that “SMETS1 meters do not offer the same consumer benefits as forthcoming SMETS2 meters, with significant limitations associated with loss of smart functionality on change of supplier…” As BEIS acknowledges, this “interoperability” is a feature only of SMETS2 meters. In the light of these comments, and given the profile of respondents to the consultation, we question whether BEIS has taken sufficient account of the consumer perspective in finalising these draft modifications.
25.The Department for Business, Energy and Industrial Strategy (BEIS) has laid these Regulations with an Explanatory Memorandum (EM) and Transposition Note. BEIS says that the instrument serves to implement an EU Directive7 (“the radio equipment Directive”), and will require economic operators (manufacturers, importers and distributors) to ensure that radio equipment products placed on the market or put into service in the UK meet the essential safety requirements set out in the Regulations.8 BEIS says that the radio equipment Directive entered into force on 13 June 2016: “the implementation of the Directive was delayed for reasons beyond the control of BEIS, however, the European Commission has granted an extension to 14 December 2017.”
26.BEIS consulted on the proposed Regulations over four weeks, from 14 July to 14 August 2017. It says that so short a period was set so as to progress the Regulations as quickly as possible, “in order to minimise the risk of the EU infraction proceedings progressing to a judgment against the UK for non-implementation and a potentially large fine.” There were 14 responses, showing broad support for the clarification the proposed Regulations bring. BEIS says that the information received was varied and not comprehensive enough to infer an accurate picture.
27.We obtained further information from BEIS, about the delays that occurred in implementing the radio equipment Directive, and about the consultation, which we are publishing at Appendix 1. We are surprised that the Department was unable to make better progress during the three years since the adoption of the Directive. We also regard it as poor practice to hold consultation exercises over a period shorter than six weeks, particularly if the period chosen coincides with holidays, as in this case. BEIS doubts that a lengthier consultation period would have produced more responses: we beg to differ.
28.The Department for Environment, Food and Rural Affairs (Defra) has laid these Regulations with an Explanatory Memorandum (EM) and Impact Assessment. The Regulations provide for the ringing of certain birds bred in captivity,9 and set out the requirements for ringing those birds depending upon where the bird is hatched. Defra says that the main objective is to create a simpler means of regulating the trade in captive-bred birds which is easier for those wishing to trade imported birds to comply with, whilst continuing to protect wild birds from being unlawfully traded. The Department explains that in 2011 the European Commission raised concerns regarding an alleged restriction on the free movement of goods by the UK10 in respect of the trade in captive-bred wild birds. It says that a simpler regime for the trade in captive birds will make it easier for those who wish to do this.
29.We found the EM insufficiently informative: Defra has undertaken to lay a revised, clearer EM. We obtained additional information from the Department, which we are publishing at Appendix 2. We were concerned in particular that too little was said about the views of those who did not agree with the measures proposed in the consultation held in early 2015,11 and also that no explanation was offered for the delay between the completion of that consultation and the laying of the instrument. It is clear that political developments since early 2015 have significantly impeded progress with the Regulations.
4 SMETS is an abbreviation of Smart Metering Equipment Technical Specification.
5 See BEIS, Smart Metering Implementation Programme, 4 December 2017: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/664216/Government_Response_to_consultation_on_the_operational_transition_of_sma.._.pdf
6 See Citizens Advice, Response to Consultation on the operational transition of Smart Meters, November 2017: https://www.citizensadvice.org.uk/Global/CitizensAdvice/Energy/Energy%20Consultation%20responses/-Citizens%20Advice%20Response%20to%20Consultation%20on%20the%20operational%20transition%20of%20smart%20meters,%20including%20draft%20legal%20text%20(1).pdf
7 Directive 2014/53/EU of the European Parliament and of the Council of 16 April 2014 on the harmonisation of the laws of the Member States relating to the making available on the market of radio equipment and repealing Directive 1999/5/EC.
8 The Regulations cover items which emit or receive radio waves and include items such as televisions and radio receivers; hearing aids; radar; satellite dishes; small drones; mobile phones; Wi-Fi, Bluetooth and GPS or other satellite transceivers; wireless alarms and medical implants.
9 Namely, birds included in Part 1 of Schedule 3 to the Wildlife and Countryside Act 1981.
10 Contrary to Articles 34-36 of the Treaty on the Functioning of the European Union.
11 See Defra, Consultation on captive-bred birds; changing how we regulate trading in England, Scotland and Wales: Summary of responses and the government response, March 2016: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509610/captive-bred-birds-consult-sum-resp.pdf [accessed 18 December 2017]