The UK’s withdrawal from the EU’s energy market now seems all but certain, according to a report by the Boston Consulting Group, Global Counsel, and Herbert Smith Freehills, published on Wednesday (28 June).
“Continued full membership of the Internal Energy Market (IEM) by the UK is not compatible with the stated political goals of the UK government to end the supremacy of the EU over UK law,” states the introduction of the report, titled “Strong currents: Navigating the post-Brexit energy market”.
The list of questions raised by Britain’s decision to leave the EU is daunting in the energy sector. It includes trade law and tariffs, but also nuclear safety and the UK’s continued membership of the EU emissions trading system for greenhouse gases.
The only good news in the report is also the most obvious: Physical energy connections won’t vanish overnight after Brexit. “The economic and commercial incentives to sustain, and potentially increase, energy market integration through physical electricity and gas interconnection are strong for both the UK and EU,” the report notes.________________________