P382 report Phase Consultation

The Balancing and Settlement Code (BSC) contains multiple references to European Union (EU) legislation and bodies. Additionally, it also contains text introduced as a result of implementing various EU legislation. Retaining these references and text following the United Kingdom’s (UK’s) withdrawal from the EU without a deal (‘no-deal Brexit’) will mean that the BSC is no longer technically accurate but will remain operable because of the European Union Withdrawal Act 2018.

Summary

The European Union Withdrawal Act (2018) will allow the BSC to remain operative immediately following exit day. However, there will be technical inaccuracies, which may lead to confusion for anyone not familiar with the relevant Brexit legislations, and will need updating as soon as possible.

Most EU regulations will be retained in UK law in the event of the UK leaving the EU without a deal – a ‘no-deal Brexit’. However, the UK government has laid Statutory Instruments (SIs) that, when in force, will mean that some parts of EU Regulations will not be retained i.e. some Articles within Regulations will effectively be ‘deleted’ from retained UK law (some of the ‘deleted’ articles are, in some cases, replaced by UK replacement legislation but, not all). This means that the BSC will need to be updated to reflect this. Additionally, references to partially retained EU Regulations will need to be updated.

It should be noted that some revoked EU Legislation may not lead to the BSC being amended as it is more efficient for these parts of the BSC to remain ‘dormant’ until further details emerge of the UK’s future relationship with the EU post-Brexit. An example would be parts of the Code dealing with P344 ‘Project TERRE’ which won’t become ‘active’ until December 2019.

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