07 June 2019
Steps for businesses in the electricity sector to take in the event of exiting the EU without a deal
If the UK leaves the EU without a deal, European energy law will no longer apply to the UK. In this instance, the UK’s electricity markets will be separate from the Internal Energy Market. There is a possibility that the Single Electricity Market will no longer continue, and the Northern Ireland market will be separated from that of Ireland.
The government has published information to help businesses to understand what they would need to do in a no deal scenario. This will enable businsesses to make informed plans and preparations in order to minimise disruption in the event of a no deal.
Actions which your business may need to take
Interconnectors, code administrators and UK market participants will need to carry out planning for a no deal scenario. Steps are likely to include:
- Interconnector owners/operators will need to continue to work with their stakeholders and regulators to prepare alternative trading arrangements and updated rules and engage with the relevant EU national regulators to understand their processes for the potential reassessment of their Transmission System Operator certifications.
- The administrators of the various domestic industry codes will need to work with relevant industry parties to ensure that the codes are updated.
- UK market participants will need to register under REMIT with an EU regulatory authority for the purposes of market monitoring to avoid disruption to cross-border trade, trade within EU wholesale energy markets, or trade within the Single Electricity Market - find more information on the Northern Ireland Utility Regulator website.
- Electricity market participants should continue using the Single Electricity Market processes and arrangements. However, market participants should be aware of the risk that the Single Electricity Market may not be able to continue, in which case government and the Northern Ireland Utility Regulator will take action to seek to ensure the continued security of supply and market stability - find more information on the Northern Ireland Utility Regulator website.
- Market participants should engage with the NI Utility Regulator where their preparations identify significant concerns. Market participants should also check the status of contracts, and licences which may be impacted by the UK’s departure from the EU.
You can find more guidance on how businesses in the electricity sector can prepare.
More information for the electricity sector and Brexit
Businesses in the electricity sector may need to make other changes before the UK leaves the EU. There are general implications for:
- energy and climate
- importing and exporting
- regulations and standards
- your employees
- personal data
- trade associations