101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 129 Business: Energy: Generating low carbon Electricity Purpose This notice explains to electricity generators and suppliers, installers of certain microgeneration technologies, and renewable electricity suppliers and generators how the following will apply in the unlikely event that the UK leaves the EU in March 2019 with no agreement in place:  how rules for Guarantees of Origin for electricity generated from high-efficiency cogeneration will apply in the UK  getting a Renewable Energy Guarantees of Origin certificate from the Gas and Electricity Markets Authority or the Northern Ireland Authority for Utility Regulation, and where certificates will be recognised  how the UK and European Economic Area states will recognise installer certification for installers of certain microgeneration technologies  the implications for support for generating low-carbon electricity, including support schemes like Feed-in Tariffs, Contracts for Difference and the Renewables Obligation Guarantees of Origin of electricity produced from high-efficiency cogeneration Before 29 March 2019 Guarantees of Origin are required to meet international obligations on fuel mix disclosures (a public statement setting out the different types of energy sources contributing to the overall fuel mix). They are certificates that identify the origin of generated electricity from combined heat and power. Combined Heat and Power Guarantees of Origin are issued and recognised across EU countries. If a combined heat and power generator sells electricity to an electricity trader or supplier in any EU country, Guarantees of Origin enable its origin to be identified for electricity suppliers’ fuel mix disclosure obligations. In the UK, regulations provide for combined heat and power Guarantees of Origin to be issued by the Secretary of State for Business, Energy and Industrial Strategy for electricity generated from combined heat and power sources in Great Britain. The Department for the Economy fulfils this function in Northern Ireland. The powers to issue Guarantees of Origin for electricity generated from combined heat and power are devolved to Northern Ireland. The government will continue working, in the absence of an Executive, with the Northern Ireland Civil Service to ensure the new rules for Guarantees of Origin work for the whole of the UK. After March 2019 if there’s no deal In a ‘no deal’ scenario, the government will ensure that Great Britain will continue to recognise Guarantees of Origin issued in Northern Ireland and EU countries. This will allow electricity suppliers in Great Britain to continue to use EU and Northern Ireland Guarantees of Origin to comply with their fuel mix disclosure obligations and ensure that existing supply contracts are not compromised, in so far as these contracts depend upon Guarantee of Origin. This position will be kept under review. Implications Guarantees of Origin from combined heat and power issued in Great Britain and Northern Ireland will no longer be recognised in the EU. This will mean that existing contracts with EU countries’ electricity suppliers or traders may be compromised if the contract terms require the transfer of a Guarantee of Origin recognised by the EU. Actions for businesses and other stakeholders Electricity suppliers will not need to take any specific actions, as Great British, Northern Irish and EU countries’ Guarantees of Origin will continue to be recognised for their fuel mix disclosure obligations in Great Britain in a no deal scenario. Generators will not need to take any action where they are selling to suppliers in Great Britain (as Guarantees of Origin will still be issued and recognised in Great Britain). If generators wish to sell to EU suppliers, then they may wish to consider how they market their exports. More information The UK government is working to amend the relevant regulations to ensure that they remain legally operable in Great Britain after the point the UK exits the EU. Further information will be available in thi s guidance on combined heat and power . Renewable Energy Guarantees of Origin: reporting renewable electricity if there’s no Brexit deal Before 29 March 2019 In the UK, Renewable Energy Guarantees of Origin are used to track and account for electricity generated by renewable energy sources. Regulations currently provide for the Gas and Electricity Markets Authority (in Great Britain) and the Northern Ireland Authority for Utility Regulation (in Northern Ireland) to issue Renewable Energy Guarantees of Origin for renewable electricity generated in the UK, when requested to do so by generators. The Regulations also require recognition of Renewable Energy Guarantees of Origin issued in the EU.