Hard Brexit Impact Analysis

Page 84 of 106 Category If no agreement is reached: Consequence EU Document Trade Energy Market COMPENSATION BETWEEN TRANSMISSION SYSTEM OPERATORS (TSOS): EU TSOs receive compensation for hosting cross-border flows of electricity on their networks. This compensation replaces explicit charges for the use of interconnectors. For Third country (e.g. the UK after the withdrawal date) imports and exports of electricity, EU law provides that a transmission system use fee is to be paid on all scheduled imports and exports of electricity from all third countries which have not adopted an agreement whereby it is applying Union law. As of the withdrawal date this provision will apply to imports of electricity from and exports of electricity to the United Kingdom. WITHDRAWAL OF THE UNITED KINGDOM AND THE INTERNAL ENERGY MARKET Trade Energy Market INTERCONNECTIVITY: EU gas and electricity market legislation sets out rules on the allocation of interconnection capacity and provides for mechanisms to facilitate their implementation. As of the withdrawal date, United Kingdom based operators will cease to participate in the single allocation platform for forward interconnection capacity, the European balancing platforms and the single day-ahead and intraday coupling. United Kingdom based NEMOs will become third country operators and will no longer be entitled to carry out market coupling services in the EU. WITHDRAWAL OF THE UNITED KINGDOM AND THE INTERNAL ENERGY MARKET Trade Energy Market ELECTRICITY AND GAS TRADING: EU based market participants must register with their national energy regulatory authority. Market participants from third countries are required to register with the national energy regulatory authority of a Member State where they are active. As of the withdrawal date, market participants based in the United Kingdom will become third country participants. As of the withdrawal date, participants based in the United Kingdom who wish to continue trading EU wholesale energy products will need to register with each national energy regulatory authority of a Member State where they are active. WITHDRAWAL OF THE UNITED KINGDOM AND THE INTERNAL ENERGY MARKET