Brexit and Energy


The U.K. won’t have access to the EU’s internal energy market. This was expected but there will be new arrangements in place by April 2022 to make sure that trading is smooth and efficient on interconnectors — huge power cables that run between the U.K. and Europe.

  • The U.K. is a net importer of electricity and gets 8% of its power from the continent. As an island nation, making sure trading across these interconnectors is efficient is important to Britain.
  • Making trading smooth will “benefit U.K. consumers and help integrate renewables and other clean technologies onto the grid in line with our domestic commitment to net zero emissions” the U.K. document says.
  • The deal includes guarantees on security of energy supply.
  • The U.K. is no longer part of the EU’s emissions trading system but both sides agreed to cooperate on carbon pricing in future and “consider linking their respective systems.”
  • The U.K.-EU agreement would be suspended if either side breaches their commitments to the 2015 Paris Agreement on climate, according to the summaries.

Dispute settlement

Summary: Disputes on the deal must be negotiated between the EU and the U.K. with no role for the EU courts.

  • An arbitration panel may rule on some areas and can order one side to resolve the problem or offer compensation.
  • Failure to do so allows the other side to “suspend obligations” which could mean blocking some access or cooperation.
  • If there’s a “serious economic, societal or environmental difficulty,” either side can react with time-limited measures.

Extract from article:

more insights