Brexit

Energy would almost certainly keep flowing across the undersea links between the UK, France and the Netherlands in the event of a no-deal Brexit. However, industry insiders have said no-deal would introduce more friction in electricity trading. The impact could be much more serious in the case of Northern Ireland as internal government documents suggest it could face blackouts while new cross-border arrangements are drawn up. Leaving without a deal would mean the UK crashes out of the EU’s flagship climate programme, the Emissions Trading System. The Treasury has said it would impose a unilateral carbon tax on electricity generators to compensate for the exit. No-deal would therefore mean some modest relief for coal and gas power station owners, because the UK plans a charge of £16 per tonne of carbon, versus the current €23 per tonne under the EU scheme. However, no-deal would pose headaches for the nuclear sector, both in terms of freedom of movement for skilled workers and the transport of nuclear materials across borders. Research into nuclear fusion, in which the UK is considered a world leader, would also be hit.

Guardian 30th Dec 2018 read more »

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Published: 31 December 2018