The UK government insists that “Brexit means Brexit”. But what does Brexit mean for the UK’s energy sector? As preparations for the upcoming Brexit negotiations begin, the UK’s energy future is at stake. Britain is deeply entrenched with the European energy market, through physical interconnectors and non-domestic ownership of critical assets, as well as a result of shared regulatory frameworks and common policy goals ranging from climate change to environmental protection. The UK’s security of supply relies greatly on continued access to key energy inputs from our European neighbours. From the EU’s perspective, the UK’s influence on common energy policy and regulation has been profound, and the UK has helped shape the liberalisation and regulatory agenda for the continent.
In this article, first published by IBC Legal, we survey the likely impact of Brexit on investors and operators in the energy sector. We also highlight some key priorities for energy businesses as they engage with policymakers to help shape the future landscape of the UK’s energy markets.