A new plan put forth by the Department of Business, Energy and Industrial Strategy (BEIS) has warned that some energy contacts with EU countries “may be compromised” in the case of ‘no deal’ with Brussels over Brexit.
The UK Government has set out its plans for a contingency to ensure that the country can still receive and generate renewable energy in the instance of a ‘no deal’ Brexit.
The plans point to what the BEIS has termed ‘renewable energy guarantees of origin’ which are used to track and account for electricity generated by renewable energy sources.
The government claims that the ‘guarantees of origin’ would still be recognised after Brexit.
But it added that some contracts “may be compromised” if the “contract terms require the transfer of a ‘guarantee of origin’ recognised by the EU.”
However, the plan adds that in the instance of a ‘no deal’ scenario, existing supply would not be instantly halted or “compromised”.
The plan states that: “in a ‘no deal’ scenario, the government will ensure that Renewable Energy Guarantees of Origin issued in EU countries will continue to be recognised.
“This will allow electricity suppliers to continue to use EU Renewable Energy Guarantees of Origin, and will ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Renewable Energy Guarantees of Origin.”
The BEIS plan says that energy suppliers and generator will not need to take any action if they plan to supply the UK, but said “if generators wish to sell to EU suppliers, then they may wish to consider how they market their exports.”
BEIS added that the “position will be kept under review”.
