UK, EU27 agree on need for efficient energy trading post-Brexit

giovedì, 15. novembre 2018 | Trading

The UK and the EU want to cooperate to ensure efficient electricity and gas trading after EU rules no longer apply in the UK, negotiators from both sides said in a draft outline of the UK's future relationship with the EU published late Wednesday.

The two sides would look at "mechanisms to ensure security of supply and efficient trade of interconnectors over different time frames," the draft document published by both the European Commission and the UK government said.

They would also look at a framework to enable technical cooperation between power and gas grid operators and organizations for planning and using infrastructure linking the UK to the rest of the EU.

These issues are currently governed by EU internal energy market legislation, including detailed technical network codes and guidelines, as well as specific EU supply security legislation.

The negotiators also agreed that EU rules should continue to apply in the UK until the end of 2020, even though the UK will legally stop being an EU country after March 29, 2019, as part of a separate draft withdrawal agreement.

The two sides also agreed in the draft outline future relationship document to consider cooperating on carbon pricing by linking a UK national emissions trading system to the EU's.

he EU already has rules in place for linking to emission trading systems in non-EU countries.

The next steps are for EU leaders, excluding the UK, to decide whether to endorse the negotiators' draft withdrawal agreement, after which it has to be ratified by the remaining EU members and the UK.

"Nothing is agreed until everything is agreed," the EC said Wednesday. "The present withdrawal agreement -- including the transition period -- must take into account the framework of the future relationship."

The negotiators are continuing their work on the finalizing the political declaration on the future relationship outline, the EC said.

They can only start negotiating the detailed future relationship agreement after March 29, 2019, when the UK is no longer an EU country.



Source: S&P Global