European Energy Traders Relaxed on Brexit

Europe’s energy traders see no impact from the result of the British referendum on membership of the European Union, the European Federation of Energy Traders (Efet) said June 28. The lobby group said it “remains confident that decision-makers will find the right means to secure the continued inclusion of the UK in the EU single energy market.”

The chair of legal committee Jan Haizmann said Efet contracts would remain fully enforceable and Efet will conduct a detailed analysis on the future contractual implications of Brexit, “as soon as details about the intended new arrangements between the EU and the UK have been decided.”

He said Efet will continue “promoting competition, transparency and open access in the UK energy sector as part of our regional spectrum irrespective of how the terms for the UK’s continuing engagement with EU markets are finally formulated.”

One argument for voting to remain in the EU was that it would be easier for the UK to influence the course of events as a participant than as an outsider. However that did not work in the case of the network code for gas, at least.

UK entities failed to influence the decision to change the start of the Gas Day, despite an appeal for an exemption at ministerial level, and as a result shippers had to devise arrangements that have the same effect on metering and supply of gas as if it too ran on a 0500-0500 GMT gas day, like its continental neighbours who are contractually locked into a 0600-0600 CET day.

William Powell