Lords seek reassurance from minister over post-Brexit energy and carbon prices

Members of an influential parliamentary committee have raised fears over government’s planning for the energy industry after Brexit, raising fears that it could raise prices, damage carbon markets and damage the Single Electricity Market between Northern Ireland and the Republic of Ireland.

The Lords’ EU Energy and Environment Sub-Committee has written to climate minister Claire Perry, saying that questions remain about the steps her department is taking to prepare the energy and climate sectors for a ‘no deal’ Brexit scenario.

The Committee felt that the Minister’s evidence on this subject was incomplete, and furthermore noted that certain details in the 2018 Budget warranted further scrutiny. The Committee’s letter therefore raises questions on a number of issues, including:

  • What assessment the Government has made of the impact a ‘no deal’ would have on consumers’ energy costs
  • How the value for the Carbon Emissions Tax to replace the EU ETS was selected
  • What discussions have taken place with the devolved administrations regarding the Carbon Emissions Tax
  • What progress the Government has made towards securing agreement that the Integrated Single Electricity Market will be maintained on the island of Ireland in a ‘no deal’ scenario, and how this could be affected by its proposed carbon tax

Read the full letter here

Further reading:

Budget 2018: ‘Carbon Emissions Tax’ to replace EU ETS in event of ‘no-deal’ Brexit

Eurelectric reiterates warning over ‘no deal’ for energy sector

OPINION: The UK faces a bleak energy future outside the EU’s internal market
Nemo Link: will power flow across the interconnector in a no-deal Brexit?