Draft Electricity (Risk-Preparedness) (Amendment etc.) (EU Exit) Regulations 2020

Robert Goodwill Excerpts

Wednesday 7th October 2020 General Committees

[The Minister for Business, Energy and Clean Growth (Kwasi Kwarteng)]

I beg to move,

That the Committee has considered the draft Electricity (Risk-Preparedness) (Amendment etc.) (EU Exit) Regulations 2020.

It is always a pleasure to see you in the Chair, Ms Elliott.

The regulations were laid before the House on 17 September. As members of the Committee will know, the transition period ends on 31 December 2020. At that point, direct EU legislation that forms part of the legal framework governing our energy markets will be incorporated into domestic law by the European Union (Withdrawal) Act 2018. This statutory instrument forms part of my Department’s work to ensure that the United Kingdom’s energy legislation continues to function smoothly after the end of the transition period.

This particular statutory instrument makes amendments and revocations to regulation EU 2019/941 on risk-preparedness in the electricity sector. It does two things primarily: first, it amends rules to ensure that they operate effectively in domestic law. Secondly, it revokes provisions that will no longer be relevant to us after the conclusion of the transition period. Specifically, it amends provisions relating to the development of electricity crisis scenarios and a risk-preparedness plan to ensure that they operate properly after the transition period. As of 1 January next year, the United Kingdom will make independent decisions on our energy policies. The statutory instrument applies to Great Britain and revokes certain obligations, for example, to submit information on our risk-preparedness to EU bodies and institutions.

In summary, the statutory instrument will ensure the operability and integrity of Great Britain’s energy legislation. It will provide certainty for market participants and safeguard the resilience of the electricity system. It will also ensure that the continued functioning of risk-preparedness is maintained, so we will have just as much provision for and foresight of risks as we had before, but we simply will not have to report back to the EU about our plans.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

We have an interconnector between the UK and Europe. Will there be an impact on that, given that there will be an EU implication for the sale of electricity in both directions through the interconnector?

[Kwasi Kwarteng]

We have more than one interconnector connecting us to European countries, and we intend to build many more. This statutory instrument relates to our risk-preparedness. When we were in the EU, we had to report back to it to say how risk-prepared we were and what risks we were mitigating. We will no longer have to do that, and the statutory instrument is a good transition out of an EU-regulated system into one that we independently manage ourselves. That is broadly what it does.

The regulations are an appropriate use of the powers of the withdrawal Act, and we fully intend and believe that they will support a well-functioning, competitive and resilient energy system for consumers. On that basis, I commend the regulations to the Committee.