How Code Administrators are preparing for Brexit
The withdrawal of the United Kingdom from the European Union (EU), known as Brexit, is scheduled for 23:00 on 29 March 2019. As this date approaches, the UK will leave the EU, following a period of negotiation, unless an extension is agreed.
To prepare for Brexit, we are working closely with other Code Administrators (CAs), via the Code Administrators Code of Practice (CACoP) group to manage the potential changes that Brexit will bring. To ensure consistency across the industry, CACoP is collectively engaging with Ofgem and the Department for Business, Energy and Industrial Strategy (BEIS) to make the necessary amendments to industry codes and licences.
As it is uncertain what the outcome of the Brexit negotiations will be, each CA has identified areas of their respective Codes that may require changing. The extent of the changes will vary from Code to Code, but all CAs are working closely with each other to ensure that potential changes are coordinated and delivered on time. Although the exact scope of the changes and final details of the UK’s relationship with the EU are unknown, we have not identified any parts of the BSC that would be legally inoperable on exit day. This is because The ‘European Union’ (Withdrawal) Bill’, also known as the ‘Great Repeal Bill’ will enable any EU legislation to continue functioning until UK laws are introduced to replace or amend EU equivalents.
A Modification will be raised to amend references to EU legislation and bodies within the BSC. However, until further information is released on how EU legislation may be incorporated or replaced in UK law we are unable to make the required changes to the BSC. This may mean that the BSC will remain unchanged after Brexit day until new UK legislation comes into force.
We have not received any advance information on proposed changes that are not already in the public domain, and we will keep you informed of any Brexit developments that will impact Industry Codes as soon as possible.
We continue to work with Ofgem to ensure Ofgem and BEIS are aware of BSC specific issues and concerns, so they can account for any flagged issues when preparing draft legislation. This will help to ensure continuity from 30 March 2019 onwards, and in the longer term, depending upon the UK’s relationship with the EU, and more specifically, Great Britain’s relationship with the European Internal Energy Market. However, there may be a requirement for further Modifications dependant on government policy and legislation brought into force but until we see this we will not know further.
For further information on how EU legislation directly impacts the BSC, please visit the Europe page of our website.