Given the critical nature of the energy system between the U.K. and the EU, it is vital that a pragmatic approach to Brexit negotiations is taken in this area, a U.K. business lobby, the CBI, announced on Wednesday.
The report, Smooth operations: An A-Z of the EU Rules That Matter For The Economy, is based on thousands of conversations with U.K. businesses, as well as dozens of trade associations, which provide the rules that will matter after the transition period when the U.K. leaves the EU.
"EU and U.K. energy rules have become highly integrated over the years. The U.K. is physically connected to Europe through sub-sea pipes and wires, and Northern Ireland and the Republic of Ireland operate an all-island single electricity market," the report said.
Underlining that the U.K. and EU are 'key trading partners' in energy with the EU supplying approximately 12 percent of the U.K.’s gas and 5 percent of electricity in 2016, the CBI said that common rules govern this complex relationship in order to ensure the market functions efficiently and delivers secure, clean and affordable energy to businesses and households.
"Appropriate regulatory convergence will be needed to ensure barrier-free access to the Internal Energy Market, and the preservation of the Integrated-Single Electricity Market on the island of Ireland," CBI said.
It argued that full participation in the EU Emissions Trading System until 2020 and at least equivalence afterwards will be important. It added that a close relationship with the International Maritime Organization and with the European Atomic Energy Community (Euratom) and EU climate change objectives is also vital.
The business body noted that ongoing collaboration and mutual support as Europe transitions to a low carbon economy, while maintaining secure and affordable energy supplies, offers potential benefits to both the U.K. and EU.
By Ebru Sengul
Anadolu Agency
energy@aa.com.tr
