The British government has said it is “considering all options” regarding the union’s future relationship with the European Union relating to energy in a move which will offer scant clarity to Brexit’s potential impact on energy bills.
On Thursday the government released its white paper detailing how the UK intends to negotiate terms for its exit from the European Union, with one section dedicated specifically to energy, transport and communications networks.
Despite admitting that said networks are among those wherein Britain “interacts extensively” with the EU, the whitepaper confirms that the government has not yet reached a position regarding its ongoing relationship with the EU when it comes to energy.
“We are considering all options for the UK’s future relationship with the EU on energy, in particular, to avoid disruption to the all-Ireland single electricity market operating across the island of Ireland, on which both Northern Ireland and Ireland rely for affordable, sustainable and secure electricity supplies,” the document states.
Great Britain remains a member of the European Energy Union, established by the European Commission to focus on member states’ contributions towards an integrated, internal energy market within which energy can be traded freely.
Without negotiating any concessions, Britain’s exit from the EU in the wake of last year’s referendum vote would cause it to leave the Energy Union, which would in turn stand to impact significantly on international energy trading through the country’s interconnectors with mainland Europe.
Prior to last year’s vote UK-based economics consultancy Oxera warned that energy bills could increase if the UK left the Energy Union, should the UK move to impose tariffs on electricity that’s imported.
Oxera senior consultant Vladimir Parail told sister publication Solar Portal Portal at the time that imported energy from Europe is effectively subsidised to the tune of £8-8.50/MWh owing to differences in carbon prices and generator charges in different European nations.
This effectively distorts the UK energy market, and the UK government could seek to redress the imbalance by imposing additional tariffs or prioritising domestically generated, more expensive electricity.
There was however better news for EU environmental protections after the government confirmed plans to bring them into UK law, however Friends of the Earth warned against complacency on the issue.
“The commitment to bring current environmental regulation into UK and devolved law is welcome but, as always, the devil will be in the detail.
“We need more information regarding how this will work in practice, and additional measures and institutions will be needed to ensure it continues to be properly upheld and enforced.
“The fact the government has chosen not to throw the baby out with the bath water and leave open the possibility of remaining part of certain EU regulatory bodies is sensible. Continuing to maintain a level regulatory playing field on issues such as chemical safety with our European neighbours is not only good for people and the environment, it makes sense for business too,” FOTE campaigner Samuel Lowe said.
