The European Parliament’s industry, research and energy (ITRE) committee has been giving consideration to the potential impact of Brexit on energy issues and, in particular, to the repercussions for key provisions in the revised regulation on the security of gas supply, including the need to amend the regional groups designed to improve cooperation and solidarity among member states (since the United Kingdom and Ireland are supposed to forming a North-West region), the solidarity mechanism among member states in the event of a serious shortage of supply and the obligation to provide notification of contracts made with third countries.
The committee wonders, too, whether or not the United Kingdom should provide notification of inter-governmental agreements (IGAs) in energy before its withdrawal with the revised decision on the transparency of IGAs requiring ex ante notification to the Commission before signing. Brexit could also have “practical implications” for the operation of the EU electricity market which “will have to be taken into account” in revising the rules which govern this market, such as the directive on electricity supply.
With regard to revision of the energy efficiency directive, the ITRE committee wonders how the EU’s 2020 target for primary/final energy consumption will be affected by the UK exit; similarly, for revision of the renewable directive, it “may be necessary” to factor in the departure of the United Kingdom, which has a binding national target of 15% of renewables in its energy mix by 2020, in setting national targets and contributions within the revised directive.
Beyond the impact on the legislative texts under discussion, the ITRE committee wonders if the UK will continue to participate in the internal energy market and what impact the withdrawal of the UK might have on completion of the energy single market and pan-European network codes. It believes, too, that the United Kingdom’s status in the various organisations (ACER, ENTSO-E and ENTSO-G) will need to be clarified. Furthermore, it wonders, in the event of the United Kingdom’s not applying internal market rules, what the effect would be on the market of British energy companies operating in the EU but not subject to its rules or state aid rules.
The ITRE committee also wonders about the impact of Brexit on infrastructure projects of common interest (PCIs) in the United Kingdom or connected with the country and, in particular, on projects that are in progress at the time of the exit and their eligibility for financing. In this context, the committee wonders about the impact on financing instruments, such as EFSI, EIB funding and the connecting Europe facility (CEF). There is also the question of the application by the United Kingdom, post-Brexit, of EU rules on the security of offshore gas and oil activities that were adopted in 2013. A further crucial issue is whether the procedure for triggering Article 50 will automatically apply to the Euratom Treaty, if the United Kingdom wants to continue to play a role in this treaty and if it continues to comply with EU standards on nuclear safety and waste management. Lastly, the committee wonders about the impact of Brexit on the situation in Northern Ireland, which forms a single energy market with Ireland.
See: http://bit.ly/2kAVtpn (Original version in French by Emmanuel Hagry)