Electricity and Gas (Internal Markets and Network Codes) (Amendment etc.) (EU Exit) Regulations 2020

Lord Grantchester Excerpts

Thursday 10th September 2020 Lords Chamber

[Lord Grantchester (Lab) [V]]

My Lords, I thank the Minister for his introduction to the regulations before the House today and appreciate the amendments needed to the clean energy package in the changed circumstances if no agreement is reached with the EU.

On the face of it, the regulations appear straightforward and essentially technical, correcting deficiencies that would occur should there be no appropriate terms covering this matter between the UK and the EU. However, this is not entirely the situation, as the regulations apply to Great Britain only and not to the United Kingdom. This brings up the situation regarding Northern Ireland. All noble Lords who have spoken have been mystified about the effect on the internal market and the integrated energy market with the EU through interconnectors in general, with implications for Northern Ireland specifically.

I will not bring up the Northern Ireland protocol, which is already subject to continuous controversy, but merely the implications for this statutory instrument. Scotland has its own Parliament and Wales its Assembly. Northern Ireland now also has an operating Executive. Does the exclusion of Northern Ireland from these regulations signify some disagreement about them? Before the Minister replies, I appreciate that Northern Ireland has an integrated energy market with the Republic and is part of the island of Ireland’s energy market. How far are these network code formulations being revoked by these regulations imperative to the grid system and the smooth operation of the internal Great Britain market through interconnectors to the island? As the Minister knows, there are two interconnectors for Britain, one to the north and one between Wales and the Republic. Would operability be maintained with Great Britain should these codes not be revoked?

Will the Northern Ireland Government respond in some way with their own order before the end of the implementation period? I would have thought, from the island-of-Ireland perspective, that the harmonisation of its internal systems from day one would be essential, and that it would wish to implement merely the technical corrections of the regulations, should the future relationship between the EU and the UK not be concluded satisfactorily on the matter. I would be grateful if the Minister set the House at ease that the connection codes are to the relevant extent interoperable, since paragraph 2.6 of the Explanatory Memorandum states:

“The Codes introduce common technical rules aimed at further integrating energy markets across the EU”.


I am presuming that the revocation of obligations on Great Britain institutions and businesses to share information with EU institutions on the connection codes will not in any way lead to future problems in the Northern Ireland energy market. However, what tariff is likely to apply in the event of no deal? What will its effect be on consumer pricing?

It would be helpful if the Minister could clarify the situation and further explain how the island of Ireland, the larger part of which will remain in the EU, will operate in conjunction with the GB internal energy market in the event that negotiations between the UK and the EU are unsuccessful. What is being planned now that this Government propose unilaterally to disregard elements of the withdrawal Act? Quite naturally, there is now heightened anxiety over the situation.