Newington's Clem Cowton looks at what the Queen's Speech means for the energy sector.

As with the Queen’s Speech as a whole, from the perspective of energy it’s been just as interesting to analyse what was missing as what was included.

Following intense speculation – and lobbying from all sides – over the past week, concrete proposals for an energy price cap, announced before the election was called and included (as a “safeguard tariff cap”) in the Conservative Party Manifesto were dropped. Instead, the Government has committed only as far as a green paper, falling short even of a white paper, with Ofgem asked to set out its opinions on the options available by Greg Clark yesterday.

This significant reduction in ambition in part reflects the turmoil within the Party over the pledge, which was viewed by many as being a departure too far from the free market ideology of Thatcher – and, now that the Government has such a slim majority, it will have to be much more sensitive to the views of its backbenchers. Keep an eye out for free marketeers like James Cleverly and Jacob Rees-Mogg flexing their muscles on the issue. The lack of clarity is also an acknowledgement that, without a clear mandate to implement its manifesto, the Government will have to move very carefully on the issue to avoid legal challenges by industry.

That said, the political drivers that led to the pledge in the first place have not gone away – with even Rees-Mogg arguing during yesterday’s debates that more protection is needed for energy customers. And, given the cross party support in the manifestoes, the way should be relatively clear for the Government once it’s got its house in order on the measure.

Missing completely was the strong support for the shale industry which featured in the manifesto, which pledged massive liberalistion of the planning law surrounding its development. With so many Conservative MPs now sitting on slim majorities, the Government will have to be much more cautious of controversial policies, and particularly sensitive to those that could attract the ire of traditionally Tory-voting NIMBYs. It’s therefore unsurprising that the Queen’s Speech and background notes contain not a single reference to shale.

However, three pieces of meaty legislation were announced. One, the Smart Meter Bill, implies a softening of the timetable for the smart meter rollout, reflecting the turbulence it has experienced thus far. Another, the Nuclear Safeguards Bill, disappointed many by confirming the Government’s intention for the UK to leave Euratom. Finally, the Automated and Electric Vehicles Bill, although under the purview of the Department for Transport, will likely require cross-departmental collaboration given its emphasis on rolling out charging infrastructure.

For a Queen’s Speech that was thin on new legislation, there is much for the energy industry to sink its teeth into. Businesses will now be hitting the ground, both on pre-legislative engagement and to seek clarity and action on the bits that are missing.