Parliament calls for minimum change achievable at Brexit to protect UK energy security.

London

The EU Energy and Environment Sub-Committee today (29 January 2018) published its report ‘Brexit: energy security’, looking at implications for energy supply, consumer costs and decarbonisation.

Chair of the Committee Lord Teverson said: “Individuals and businesses across the UK depend on a reliable and affordable supply of energy.  In recent years, the UK has achieved such a supply in partnership with the EU, working with other Member States to make cross-border trade in energy easier and cheaper.

“Over the course of the inquiry the Committee heard benefits of the UK's current energy relationship with the EU, and the Minister acknowledged these benefits when he stated his hope that Brexit would result in as little change as possible.  It remains unclear, however, how this can be achieved, without remaining in the single market, IEM and the other bodies that develop and implement the EU's energy policy.”

The full 69 page report can be found at:

https://publications.parliament.uk/pa/ld201719/ldselect/ldeucom/63/63.pdf

Brexit-Partners will now subsume the findings into our approach to Brexit impact analysis scenarios and Brexit response planning.

Key findings

The report states that Brexit will put the UK's current frictionless trade in energy with the EU at risk.

The Committee calls on Government to set out how it will work with the EU to anticipate and manage supply shortages - and to assess what impact leaving the Internal Energy Market would have on the price paid by consumers for their energy.

The Committee addressed the UK's ability to build future nuclear generation sites, including Hinkley Point C.  If access to specialist EU workers is curtailed, and UK fails to replace the provisions of the Euratom Treaty, Brexit could result in the UK being unable to import nuclear materials.

The Committee found that EU investment has made a significant contribution to constructing and maintaining a secure energy system in the UK, and that replacing this funding will be critical to ensuring sufficient infrastructure is in place to enable future energy trading.

The report concludes that, post-Brexit, the UK may be more vulnerable to energy shortages in the event of extreme weather or unplanned generation outages, and asks the Government to set out how it will work with the EU to anticipate and manage such conditions.

Further details on energy interdependence

No-one should be in any doubt about how interconnected the UK is as energy supplies are concerned – as the map of electricity and gas flows in and out of the UK shows

Brexit_Energy_Security.jpg

 

Furthermore, The Republic of Ireland and Northern Ireland energy supply systems mean that: “The island of Ireland’s only physical connections for gas and electricity to mainland Europe, are via the UK.”

Approximately 88% of the island of Ireland’s energy needs are imported with around 40% of the gas used on the island imported from GB”.

The report quotes a respondent as stating that: “energy interconnections play an important role in security and affordability for both the Republic of Ireland and Northern Ireland”

Anyone involved in the energy sector needs to take notice of this report.  Contact us for support in translating into Business Impact Assessment and developing a Brexit response.

 

John ShuttleworthComment