This week has seen our elected representatives at Westminster attempt to deliver a solution to the Brexit conundrum, 31 months after the referendum on membership of the EU. A physically crumbling parliament building, half propped up by scaffolding, was the backdrop to feverish punditry on Monday and Tuesday evening and provided an arresting visual metaphor for what was transpiring inside.
The Government has negotiated a draft Withdrawal Agreement with the EU which would be a legally binding international treaty and a political declaration on the future relationship (a basis for negotiations once the UK ceases to be a member). The transition period and other provisions within the proposed Withdrawal Agreement give industry certainty in key areas in the short term and the Political Declaration provides a basis for agreeing a framework to deliver enduring cooperation and trade in energy. This deal was rejected by Parliament on Monday.
A ‘no deal’ outcome does not provide the certainty required by industry and poses risks to the functioning of the UK energy market, by interrupting the continuity of energy and trade policy. We have made this clear in a joint trade association briefing paper to all MPs in November and continue to engage with other concerned stakeholders to argue that no-deal should be taken off the table.
However, given the current disarray and uncertainty with only 71 days to go, we have now developed brief guidance on preparing for Brexit, which can be found here.
An ACER open letter provides information to market participants, Registered Reporting Mechanisms and Organised Market Places on REMIT in the event of a no-deal Brexit. This is particularly of significance to market participants who are/will be from a third country and whose predominant trading activity is in wholesale energy markets in Ireland.
“Market participants established or resident in the UK — or market participants from third countries currently registered in the UK – who wish to enter into transactions or place orders to trade in European Union’s wholesale energy markets after the UK’s withdrawal from the European Union on 29 March 2019 will need to be registered with a national regulatory authority of another Member State (EU27 Member State) where they are predominantly active”
The CRU encourages such market participants, who wish to consider re-registration via the CRU, to make themselves familiar with the specificities of the registration/re-registration process in the Open Letter and to prepare for the possibility of re-registration.
With thanks to @MarinaHyde at the Guardian for imagery.