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Brexit has finally arrived, and as you read this there will be a cacophony of political noise about the UK having “got the job done”
Yet the big decisions are only just coming into view. And just as Britain, to quote the prime minister, will “unleash its potential” on its exit from the EU at 11 o’clock tonight, so too will it unleash a torrent of questions from businesses, not least utilities.
For the energy industry, there are some huge unknowns as Britain departs the trading bloc. And, with only what is left of this year to answer them, there is very little time to play with.
It may not have been grabbing the same airtime as other sectors, such as motor manufacturing, but that doesn’t mean the impact of this historic international moment on our energy industry won’t be seismic.
Not least in terms of our future relationship, if any, with the EU’s Internal Energy Market (IEM), designed to enable a harmonised, tariff-free trading of gas and electricity between EU members, through an agreed set of rules on issues ranging from state aid to clean energy.
Any divergence away from EU regulations, a prospect already mooted by chancellor Sajid Javid, threatens to change Britain’s role forever in this key, if quiet, success story of the European project.
With an already massive remit for net zero, there is little appetite in energy circles for such mass upheaval, coupled with the nagging unease about future arrangements surrounding interconnectors, security of supply and capacity.
Concerns are also growing about a loss of influence if the UK is unable to fully participate in those technical bodies that can call the shots on swathes of powerful energy regulation. Questions abound about future emissions trading and the skills pipeline, and there is major ongoing uncertainty for Northern Ireland, potentially poised to see the biggest impact of Brexit if the all-island Single Energy Market (SEM) is jeopardised.
In all these areas, hope remains that a lifeline will be thrown for a sector that many in it believe should be treated as a special case. But there is an ambitious timeline for the Withdrawal Agreement. Any momentary lucidity over exiting the EU following the general election result has now been replaced by urgent calls for clarity.
The countdown may well have begun on the final hours to Brexit, but the clock is ticking on the detail.
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