101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 186 Actions for businesses and other stakeholders Interconnectors, code administrators and UK market participants will need to carry out contingency planning for a ‘no deal’ scenario. Although it will be a matter for individual businesses to work out what steps they might need to take, the government anticipates these are likely to include: Interconnector owners/operators will need to work with their stakeholders to prepare alternative trading arrangements and updated rules. These alternative trading arrangements will need to be as efficient as possible and provide each connected market with the necessary information to ensure the trades will work. In developing these, the interconnectors will need to work with their customers, regulators and other stakeholders in both connected markets. New arrangements will need to be in place for 29 March 2019. Interconnector owners/operators will need to engage with the relevant EU national regulators to understand their processes for the potential reassessment of their Transmission System Operator certifications. Ofgem, and where appropriate, the Northern Ireland Utility Regulator will seek to support the interconnectors in this process. Domestically, government will retain existing Transmission System Operator certifications and will ensure that EU Exit will not create any new domestic administrative requirements in this regard. The government will also make any small changes or clarifications necessary to the Transmission System Operator certification process to make sure it continues to function efficiently post-exit. The administrators of the various domestic industry codes (the technical rules of the domestic electricity system) will need to work with relevant industry parties to ensure that the codes are updated. Ofgem will lead the licence change process in Great Britain and has recently issued a document to industry outlining the process it will follow: Preparing for EU exit: licence and industry code modifications; the Utility Regulator will take similar action in Northern Ireland. UK market participants will need to register under the Regulation on Energy Market Integrity and Transparency (REMIT) with an EU regulatory authority for the purposes of market monitoring to avoid a disruption to cross-border trade, trade within EU wholesale energy markets, or trade within the Single Electricity Market. UK regulatory authorities will provide stakeholders with further information on the contingency requirements for domestic market monitoring later in the year. In Northern Ireland, 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 continued security of supply and market stability. Market participants should engage with their Regulatory Authority where their preparations identify significant concerns. Market participants should also check the status of contracts, and licences held in EU Member States, which may be impacted by the UK’s departure from the EU.