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Political agenda: 02 December 2016

“Post-Brexit IEM access will help to keep the lights on”

More than five months on from the Brexit vote, and the shockwaves from the seismic result continue to be felt in Westminster.

The latest crack in the “Brexit means Brexit” statement that became prime minister Theresa May’s catchphrase over the summer comes in the form of a legal dispute over whether the UK stays inside the single market after it has left the EU.

Uncertainty around the UK’s membership of the European Economic Area (EEA) post-Brexit could prevent ministers taking Britain out of the single market – a key part of the leave campaign. Brexit secretary David Davies has a lot to deal with here, but business and energy secretary Greg Clark could secretly be very pleased if the UK remains part of the EEA.

Interconnection and access to the European internal energy market (IEM) is an important part of the UK’s future energy strategy. Access to the IEM will be made substantially easier if the UK retains access to the single market.

Clark, a remainer, unswervingly followed the party line, promising that he is committed to helping the UK to get the best from Brexit.

For the energy sector, having access to continental power supplies – in particular as capacity continues to shrink as coal comes off the system – will help suppliers to keep the lights on and costs down.

As with all things Brexit, the government and the sector will be following events closely, and hoping for a swift and clear outcome.